The stimulus legislation would revamp the 74-year-old U.S. unemployment compensation program by encouraging states to give benefits to those who quit their jobs to care for ailing relatives.
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"It's fundamentally at odds with the basic tenets of unemployment insurance: temporary cash payments for people who lose their job through no fault of their own," said Douglas Holmes, president of UWC-Strategic Services on Unemployment and Workers Compensation, a Washington, D.C.-based group that represents employers. "Unemployment insurance is not public assistance, it's not a family support program, it's not food stamps."
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Unemployment insurance is paid by states from taxes collected from employers, and was enacted as part of the Social Security Act of 1935. To qualify for a share of the $7 billion in incentives, states would have to meet a list of requirements.