Federal aid for laid off in works

Associated Press

WASHINGTON — Tens of thousands of Americans who have lost their jobs in the aftermath of the terrorist attacks should get longer unemployment benefits and $3 billion in health care, training and other aid, President Bush said Thursday as the White House and Congress debated plans to revive the economy.

"We hear the cries of those who have been laid off," the president said. "We worry about the shock waves throughout the economy."

Bush unveiled his worker relief package amid fresh evidence that the Sept. 11 attacks on New York and Washington, D.C., had stunned an already wobbly economy. The Labor Department said new claims for unemployment benefits rose last week to the highest level in nine years.

"People … are on bended knee," the president told Labor Department employees as he outlined his relief package.

It was the second straight day Bush publicly fretted about the economy. He announced Wednesday that he wants to spend between $60 billion and $75 billion to jump-start the economy, mostly with tax cuts.

Advisers said the president is aware that economic anxieties could hurt the nation’s morale as he girds for a war on terrorism, and could pose long-term political problems for him.

In a show of bipartisan unity, the Democratic and GOP leaders of the House and Senate budget committees jointly called for quick passage of a stimulus package that would be felt by Americans within six months.

Under Bush’s newest proposal, Americans who have lost their jobs since the attacks would be eligible for a $3 billion program that governors can use in a variety of ways including job training, day care, income supplements and health care premiums.

Bush needs congressional approval for the health care component.

The money would come from the $40 billion Congress has already approved for national recovery.

The president proposed extending unemployment benefits by 13 weeks in states hit hardest by the attacks; most states now cover workers for 26 weeks.

The White House said Congress must approve that extension, which would expire in 18 months. Democratic lawmakers want to extend benefits by more than 50 weeks.