The new economic stimulus bill being discussed by Congress and the White House must provide money to shore up the Massachusetts unemployment insurance system and invest in long-term transportation infrastructure projects that create jobs, Associated Industries of Massachusetts said this morning.

The largest business association in Massachusetts also called for the federal government to adjust unemployment insurance payment rules that threaten the financial future of non-profit organizations.

Negotiations on what would be the fourth trillion-dollar rescue package since the onset of the COVID-19 pandemic have been contentious among President Donald Trump and members of both parties in the US House and Senate. A central issue has been whether to continue the $600-per-week enhanced unemployment benefit due to expire Friday.

The White House and Senate Republicans neared agreement last week on a rescue proposal that includes another round of stimulus payments to individuals, additional aid to small businesses and a partial extension of enhanced unemployment benefits. The House of Representatives passed a $3 trillion pandemic relief package in May that would aid struggling state and local governments along with providing another round of direct $1,200 payments to taxpayers.

“AIM strongly supports measures that will stabilize the unemployment insurance system and moderate potential unemployment tax increases for employers already struggling to keep their doors open,” said Brooke Thomson, Executive Vice President of Government Affairs at AIM.

“We also realize that Massachusetts and other states need to understand the scope of potential federal assistance before developing budgets for Fiscal Year 2021.”

The importance of federal assistance for Massachusetts and its employers while facing the largest decline in employment since the Great Depression cannot be overstated.

The Massachusetts unemployment rate stands at a record high of 17.4 percent and projections from the most recent Unemployment Trust Fund Outlook Report estimate the fund will be insolvent by billions of dollars well into 2024.

Employer contributions are due to increase from $1.6 billion this year to $2.2 billion in 2021. These changes represent automatic increases tied to the account’s financial condition. Additional assessments may also be needed to close the projected $6.6 billion deficit estimated over the next few years.

AIM has asked the Massachusetts congressional delegation to support unemployment insurance debt forgiveness in any stimulus bill. The association has also begun to work with the Baker Administration and state Legislature to explore other options.

For example, the administration could forgo the assessments and sell bonds to pay the money that will be borrowed from the federal government.

AIM has expressed concern that extending the $600-per-week unemployment benefit will keep employees from returning to work.

“If we cannot help businesses retain a level of confidence in their activities or a workforce level secure enough for ongoing operations, all the efforts we have undertaken as a nation to mitigate the spread of the disease while helping businesses cover overhead and payroll costs will be of little benefit. We must readjust these provisions in advance to affect the outcomes necessary to reshape a thriving economy,” Thomson said.

Similarly, AIM has joined with the National Association of Manufacturers to call for increased federal spending on long-term infrastructure and transportation investments. Those investments are needed to address the more than 54,000 bridges across the United States that are rated “structurally deficient,” as well as needed improvements to roadways, ports, water, energy and digital assets.

AIM also supports increased federal assistance to states and municipalities that find themselves in a fiscal squeeze that could impede their ability to provide the public services needed by employers.

“We understand the federal government’s concerns with increasing the nation’s debt ceiling yet again, but we do not believe this is the time to be having such concerns. Only the federal government has the power and the flexibility to continue borrowing money, whereas states and municipalities will eventually have to balance their budgets,” AIM wrote in a recent letter to the Congressional delegation.

Although Massachusetts received federal funding through the original Phase 2 stimulus package known as the CARES Act, the funds are insufficient to offset the revenue setbacks the commonwealth is experiencing.

Meanwhile, AIM continues to urge Massachusetts lawmakers to assess the state of the economy and the amount of federal aid before moving forward with initiatives that could raise the cost of doing business for employers in a recession.

“Premature and likely permanent decisions made at such an uncertain juncture will make it less likely for businesses to regain levels of stability and confidence necessary for industry and economy to bounce back in Massachusetts,” Thomson said.

AIM members seeking more information may contact Brooke Thomson, bthomson@aimnet.org, or Vasundhra Sangar, vsangar@aimnet.org.