Yesterday, the House passed legislation authorizing the creation of "personal re-employment accounts" for jobless workers. The bill (HR 444), sponsored by Jon Porter (R-Nevada) was passed, 213-203 on party lines. This was done after rejecting a Democratic attempt to offer supplemental unemployment benefits.

The accounts would give unemployed workers at risk of exhausting their state unemployment benefits up to a $3,000 stipend to spend on such expenses as education, childcare, health care or transportation. If workers were to find jobs within 13 weeks, they could take the balance of the account as a balance. Many Democrats are concerned that workers who accept re-employment accounts would be ineligible for some traditional unemployment benefits such as job training.

The legislation is unlikely to be considered in the Senate, however many Senate Democrats would be interested in reviving a a counterproposal to offer supplemental federal unemployment insurance to individuals who go through their traditional state benefits.