2010 Unemployment Benefits "Extenders" Bill Inches Closer to Passage

The 2010 Unemployment Benefits "Extenders" bill, HR-4213, has been stalled in the Senate for over three weeks now, leaving hundreds of thousands of jobless Americans without benefits while even more run out.

The Senate has actually been working on the bill for nearly eight weeks, trying to find agreement on the provisions provided in the House version. Republicans and some moderate Democrats are concerned about the cost and the over $60 billion that the bill would add to the already astronomical federal deficit.

The first version of the Unemployment Benefits "Extenders" bill received a bi-partisan rejection because of this. A second, slightly modified version garnered a few more Democrat votes but still missed the needed 60 votes with all Republicans and two Democrats still voting "no".

A fully paid for and deficit reducing Unemployment Benefits "Extenders" bill which covered all unemployment benefits through November 2010, including the $25 per week FAC supplement which the Democrats have removed, was proffered by the Republicans, but the more liberal Democrats voted it down. Two offers by the Republicans to provide temporary unemployment benefits extensions while the greater bill was being debated were also rejected by the Democrats. (Read: "Democrats Block Benefits Extension")

Debate continues, though, and now the Senate is working on reducing the cost of the overall bill by focusing on the portion which would provide an additional Medicaid bail out to the states. A new version of the bill, reportedly phasing out this Medicaid assistance (called FMAP) over time rather than abruptly has garnered the interest of at least one Republican, Susan Collins (R-Maine).

But Minority Whip John Kyl (R-Ariz) said he isn't sure phasing out FMAP will be enough to get the necessary support from the Republicans, with other concerns over job killing tax measures still pending.

Still, according to The Hill, Senator John Thune (R-S. Dakota), who had presented the amendment that paid for the entire bill and all unmeployment benefits by using unallocated stimulus funds and trimming government waste, seemed more optimistic. He told reporters, "My guess is that some Republicans, because of UI [unemployment insurance], want to be able to vote for a bill and would accept a certain amount of non-paid-for-spending."

Thune further suggested that some Republicans may accept a reduction in the overall deficit addition of the bill of $30 billion in order to get unemployment benefits extensions passed.

What is becoming clear is that Senators from both parties are truly concerned about the unemployed and want to find a way to restore and extend benefits. The trick will be coming to agreement and bringing the cost down at least part way on a few more parts of the bill, or separating the Unemployment Benefits Extensions portion of the bill from the rest of it, an idea which is also being floated.

This is all a good sign and even Senator Max Baucus, who had seemed to have all but given up last week, now says of getting the 60 votes necessary to pass the Unemployment Benefits "Extenders" Bill,, "We're close. We're close. No announcement yet ..."

I, for one, choose to hang my hat on that ... and will be waiting with anticipation for that announcement.

Source:

http://thehill.com/blogs/healthwatch/medicaid/104939-senate-talks-on-tax-package-focuses-on-medicaid-payments-to-states

http://thehill.com/blogs/on-the-money/domestic-taxes/104803-senate-republicans-suggest-theyd-accept-some-deficit-spending-on-tax-extenders