Letter to the President of the Senate and to the Speaker of the House Transmitting Bills Extending Unemployment Benefits and Providing Aid to Needy Children

My dear Mr.___________:

I am transmitting herewith two bills: (1) To establish a temporary program for the payment of additional unemployment compensation to workers who have exhausted their State benefits; and (2) To authorize Federal financial participation for a temporary period in State aid to needy children of unemployed parents. I recommended such legislation on February 2 as a part of this administration's program for economic recovery and growth.

The need for prompt enactment of this legislation is clear.

In January, 5.4 million workers were without jobs. About 3.4 million were receiving unemployment compensation, and about one-half million who had already exhausted their unemployment compensation were still unemployed.

Unemployment compensation provides unemployed workers with necessary purchasing power. When this compensation is exhausted the purchasing power ceases. This has a serious impact not only on the worker and his family, but on the economic health of the entire economy. The costs and effects of mass unemployment arising from a national recession clearly reach across State lines. The problem is national in scope, and the Federal Government has the responsibility for taking action as soon as possible to meet it. That is why I propose this temporary program as a first step. The extension of the unemployment compensation program will permit 3 million workers to receive benefits totalling about $950 million.

There is also a pressing need for improving our public assistance. Pending completion of a study of a permanent program in this area, we should take action to help the States provide assistance to children whose need results from the unemployment of their parents. In some cases, the unemployment benefits of these parents have been exhausted; in others, such benefits are not payable or are not sufficient to meet the needs of the large family. Therefore, as part of a national temporary program dealing with the problems of the unemployed, some assistance for the children of needy unemployed workers should be provided.

The enclosed letters from the Secretary of Labor and the Secretary of Health, Education, and Welfare describe the legislation in more detail.

Sincerely,

JOHN F. KENNEDY