Will 2010 Unemployment Benefits Extensions Be Revived?

Can unemployment benefits extensions be revived? The Unemployment Benefits "Extenders" Bill, HR 4213, went down to defeat in the Senate on Thursday on a 57-41 vote. All Republicans and one Democrat, Senator Ben Nelson (D-Neb) voted against the bill. A total of 60 "yay" votes are required for passage.

The failure of the Senate to pass unemployment benefits extensions has left over a million Americans with no source of income at all. Benefits had already expired for many several weeks ago, leaving them desperate for good news on Thursday. But with the failure to pass HR 4213 in the Senate, their hopes for restoration of this lifeline were dashed and hundreds of thousands more are now doomed to join them every week from now on unless something is done quickly.

Unemployment Benefits Revival: On the negative side -

Senate Majority Leader Harry Reid (D-Nev) has, as of this writing, said he will abandon the Unemployment Benefits "Extenders" Bill and move on to other business. In spite of pleas not only by millions of unemployed Americans but by Republican Senator Olympia Snowe (R-Maine) to bifurcate the unemployment benefits extension provisions from the rest of the "Tax Extenders" bill and vote on unemployment benefits as a standalone issue, Senator Reid appears to be determined not to do that, but rather to let it die for now.

The chief author of the Senate Democrats' version of HR 4213, Senator Max Baucus (D-Montana) said on Friday that the Democrats may delay voting on the bill again for several weeks, stating "There's a lot of people not getting their unemployment checks. There's going to be consequences of that, " and, according to an Associated Press Article by Andrew Taylor, Senator Baucus added that 'that could put additional pressure on Republicans to support the bill".

Apparently, then, the Democrats' strategy may now be to allow the suffering and the cries of the unemployed to grow over the summer and then to use that suffering to pressure the Republicans into voting for the larger bill which includes legislation Republicans believe will kill jobs and further damage the economy through increased deficit spending.

Unemployment Benefits Revival: On the positive side -

Fortunately, there are others in Congress who, unlike Senate Majority Leader Reid and Senator Baucus, may not be willing to allow the unemployed to suffer for the sake of political parlor tricks.

In spite of the unanimous "no" vote on HR 4213, Republicans have repeatedly stated that they are not opposed to extending unemployment benefits and that they want to do so as quickly as possible. Senate Minority Leader Mitch McConnell (R-KY) has repeatedly argued, "The only thing Republicans have opposed in this debate are job-killing taxes and adding to the national debt."

Immediately following the defeat of the Unemployment Benefits "Extenders" bill, HR 4213, on Thursday, Senator McConnell offered for a third time to provide paid for unemployment benefits for the jobless to prevent the lapse in benefits we're now experiencing while the broader "Tax Extenders" bill was being debated. Unfortunately, all three times the Democrats rejected the Republicans' offers. These efforts have made it clear, however, that the Republicans are not opposed to extending unemployment benefits; it is their objection to other parts of the broader bill as well as to the Democrats' unwillingness to cut other government costs or to use unallocated stimulus funds to offset the cost of benefits that have kept them from voting yes. (Read: "Democrats Reject Third Republican Offer of Benefits")

Previously, Senator John Thune had also presented an amendment to the broader "American Jobs and Closing Tax Loopholes Act of 2010" or "Tax Extenders" bill that would have not only paid for ALL provisions of the bill, including the unemployment benefits extensions through November, but also retained ALL of those benefits, including the $25 per week that the Democrats cut in their revisions. Senator Thune's amendment received full support of the Republicans as well as Senators Nelson and Lieberman who object to the Democrats' version of the bill, but the Democrats in the Senate rejected it. (Read: "Democrats Block Benefits Extensions") However, this, as well as other remarks by Senator Thune that Republicans support extending unemployment benefits, adds more hope that a standalone unemployment benefits extension bill could garner enough votes for passage.

Another very positive turn of events is that Senator Olympia Snowe (R-Maine) wrote a letter to Senate Majority Leader Reid, urging him to separate unemployment benefits extensions from the broader "Tax Extenders" bill. Citing her concern for the jobless and stating that she believed the will was present for the measure to pass on its own now, Senator Snowe practically begged Senator Reid to put the standalone bill before the Senate as soon as humanly possible.

With her support and, apparently, a yes vote from the other Senator from Snowe's state, Susan Collins (R-Maine), the Senate could have enough votes to pass a standalone version of the unemployment benefits extension bill, even if Democrat Senator Ben Nelson and all other Republicans continued to hold out. This is presuming full support of all the Democrats and possibly a vote from Senator Joe Lieberman (I-Conn) who had previously voted no but who had said he would vote yes if his was the deciding vote.

Unemployment Benefits Revival: Another hopeful sign -

Still, as angry as Senator Reid appeared by the end of last week, the Senate may not take unemployment benefits up as a standalone bill anytime soon, preferring to punish and manipulate the Republicans by punishing the unemployed.

But now, with the failure of HR-4213 in the Senate, the Speaker of the House Nancy Pelosi (D-Cal) has indicated that the House may generate a standalone unemployment benefits extension bill and bring it to the floor there as early as next week. Even more positive, she seems to have indicated that she may relent and agree to offset the cost of the UI benefits extensions in order to garner Republican support in both chambers.

In an interview with the Huffington Post, Pelosi said, "It really has to happen. One of the debates that goes on now - which I completely resist, but it's one of the debates going on - is at the end of the day, these people have to have their benefits, and should we begin paying for unemployment benefits?"

If this new bill could be passed in the House and sent up to the Senate, it could make the difference in getting this done, in spite of Reid. If the House and Senate can resist adding all sorts of other measures to a standalone unemployment benefits extension bill, and if the cost is, indeed, offset, it will certainly receive Republican support. Democrats in the Senate would only vote against a bill like that coming from the House at their own peril.

Unemployment Benefits Revival: Best case scenario -

Even in a best case scenario, where either Senator Reid agrees to bring a vote on a standalone unemployment benefits extension bill or whether a new bill comes up from the House, it is all but certain that things could not happen quickly enough for the bill to make it to President Obama's desk in time to be signed before the July 4 recess. That means more waiting, without money, without the ability for many to buy food, to stay in their homes or apartments. It means more suffering.

But however this goes down right now, I believe that unemployment benefits extensions will pass and our benefits restored. I have to believe this, because, as one of the unemployed that have already seen my benefits cut off, to believe anything else I would go insane. We must all do our best to hang on, to support one another and to continue to keep the severity of the need for unemployment benefits before our legislators and the media. My thoughts and prayers are with all of you.

Sources:

http://news.yahoo.com/s/ap/20100625/ap_on_bi_ge/us_congress_spending

http://www.huffingtonpost.com/2010/06/25/nancy-pelosi-on-unemploym_n_625812.html

http://thehill.com/blogs/on-the-money/801-economy/105647-snowe-seeks-stand-alone-ui-bill