Update: Bush Signs Law Extending Unemployment Benefits By At Least 7 Weeks

November 21, 2008 11:33 a.m. EST

Washington, D.C. (AHN) - Reversing his previous opposition, President George W. Bush on Friday signed into law legislation extending unemployment benefits in all states. The Senate passed the bill on Thursday, the same day the Labor department said jobless claims rose to a 16-year high.

The Unemployment Compensation Extension Act of 2008 extends unemployment insurance benefits in all states by seven weeks. There will be an additional 13-week extension for states with unemployment rates above six percent. Benefits are provided in most states for up to 26 weeks.

In September, Bush repeatedly threatened to veto legislation from Congress that included an extension of jobless benefits. At the time, Republicans had proposed extending benefits only to high-unemployment states. They also argued that the Democrat-backed measure removes a requirement for workers to be employed for at least 20 weeks to qualify for benefits.

White House press secretary Dana Perino said in a press briefing on Thursday, "Because of the tight job market, the President believes it would be appropriate to further extend unemployment benefits and he would sign legislation that is now in front of Congress."

When asked about the change in the President's position on the extending the benefits, Perino responded, "In June of 2008, our unemployment rate in our country was 5.5 percent. That is historically low for an unemployment rate. Just five months later, the whole world has changed, and the President adapts to conditions on the ground. Unemployment is now at 6.5 percent, and we think the responsible thing to do is to try to help job seekers over this hump until they - we can get the country creating jobs again and get them back to work."

"The Senate acted responsibly by helping struggling families make ends meet," Senate Majority Leader Harry Reid (D-NV) said in a statement after the bill was passed the same day. "Extending unemployment insurance will help many struggling to afford the rising costs of living, and I encourage the President to sign this bill as soon as possible."

House Speaker Nancy Pelosi (D-CA) said in a statement she was "pleased" that the President is supporting a "critical step." But she also said that while extending benefits is essential, a second economic stimulus package that will "strengthen our economy for the long term" is still needed.

Initial jobless claims reached 542,000 in the week ending Nov. 15, the highest level in since the 1992 recession.