CQ TODAY ONLINE NEWS
Updated June 11, 2008 – 7:42 p.m.
Extension of Unemployment Benefits Fails in House
By Liriel Higa and David Clarke, CQ Staff
House Democrats tried to move quickly Wednesday to respond to the spike in unemployment announced last week, but were unable to muster enough votes to pass an extension of unemployment benefits.
The 279-144 vote was not enough to pass the bill under suspension of the rules, which requires a two-thirds majority and bars amendments.
Democrats were hoping for a strong showing to bolster their case for extending the benefits and put them in a better bargaining position with the White House, which threatened a veto of the measure.
The legislation (
In a policy statement, the White House said, “the best way to help workers is to create an environment that encourages job creation and to promote effective job training,” calling on Congress to pass pending free trade agreements with Colombia, Panama, and South Korea, make permanent tax cuts championed by President Bush that will expire in 2010 and overhaul the Trade Adjustment Assistance program and the Workforce Investment Act.
Last month, the unemployment rate jumped from 5 percent to 5.5 percent from the previous month. It was the biggest increase in over two decades and added impetus to the Democrats’ efforts. Still, the administration noted that the extensions are usually granted when the unemployment rate is around 7 percent. The last temporary extension came in March 2002, after the Sept. 11, 2001, terrorist attacks and the unemployment rate was 5.7 percent.
The administration also expressed concern that even states with low unemployment rates would receive the 13-week extension, and some individuals who have worked for as little as two weeks could still potentially qualify for a year of benefits.
But the White House indicated it was willing to accept a targeted extension, echoing the stance of many GOP lawmakers. “[T]he administration could support legislation that would offer a 13-week extension of federally financed unemployment benefits to high-unemployment states alone.”
Republican Ways and Means member Jerry Weller of Illinois has a proposal (
Weller noted that Republicans on the Ways and Means panel had all supported some form of additional unemployment insurance benefits. But he decried the elimination of the requirement that individuals work at least 20 weeks before collecting extended federal benefits, as proposed in the Democratic plan.
“I am especially opposed to the cynical election-year maneuvering reflected in how the House is considering this important issue today,” Weller said. “Does the majority think that is fair to taxpayers? To pay 12 months of unemployment benefits in exchange for less than one month of work?”
The bill approved by the Ways and Means panel — 24-13, with three Republicans voting in favor — would violate the House’s pay-as-you-go budget rule, which requires the cost of new mandatory spending or tax cuts to be fully offset. According to the Congressional Budget Office, the bill would add $8.5 billion to the deficit over 10 years. But the benefit is funded by a trust fund dedicated to the program. That money would be used to pay for the extension and supporters of the bill argue because of that it does not need an offset.
Members of the House Blue Dog Coalition, a group of 49 fiscally conservative Democrats, have not insisted that the unemployment extension be offset, arguing it is a one-time cost and could be considered an economic emergency.
Extension of Unemployment Benefits Fails in House
Democrats had considered offsetting the bill by including a new requirement for banks that sell credit and debit cards to report more information to the Internal Revenue Service about the use of these cards at merchants, according to a House Democratic aide. The new information, proponents say, would have served as an incentive for the merchants to accurately report what they owe in taxes as well as given the IRS more information for audits, leading to more revenues.
The idea has been proposed by the Bush administration but is opposed by banks and credit card companies who worry complying with this policy be costly.
Democrats are determined to send the proposal to President Bush soon, but whether it will move as stand-alone legislation or as part of the war supplemental spending measure (
The versions of the supplemental that both the House and Senate have approved include the unemployment insurance extension. But House Democratic leaders have toyed with the idea of dropping the language from the legislation in the interest of sending Bush a pared-down supplemental including just war funding and a veterans’ education benefit, hoping he will be more likely to sign it.
Senate Democrats, who support the unemployment extension, remained noncommittal about when or if they would take up the standalone bill when the House passes it.
“We hope to have the unemployment extension,” Sen. Charles E. Schumer , D-N.Y., said. “We’d like to see it in the supplemental ... but we face the hurdle of opposition ... from the president and from so many Republicans.”
Senate Democrats were able to achieve a 75-22 vote on the domestic portion of the supplemental, indicating they might be able to overcome a veto. Many Democrats don’t think they could get the 60 votes necessary for a standalone unemployment bill to overcome a Republican filibuster. And some of them aren’t pleased at the prospect of a pared-down supplemental.
Regardless, the push to pass unemployment benefit legislation has pushed off consideration of the supplemental once again. Democrats had initially said they hoped to clear a bill before the Memorial Day recess. But the supplemental now appears likely to not be completed until July.
Although the administration has warned that the supplemental is needed to fund the troops, the Pentagon has been able to make do in the meantime by reprogramming money that has already been appropriated. The Senate Defense Appropriations Subcommittee on Wednesday approved reprogramming $1.6 billion for operation and maintenance, which pays for civilian salaries, among other items. That came on top of $5.7 billion that was approved last week.
House Minority Whip Roy Blunt , R-Mo., railed against the recent decision by the appropriators to approve only $7.3 billion out of the $9.8 billion in reprogramming authority the Pentagon requested to stretch war appropriations into July.
“It’s another time where members of Congress want to become commanders in the field,” said Blunt, adding that the move was especially egregious since the delay in funding was Congress’ doing.
The new “drop dead” date for passing the supplemental bill is July 15, said House Republican Conference Chairman Adam H. Putnam , R-Fla. That’s when the Pentagon will be unable to pay soldiers deployed and may have to start furloughing civilian workers, he said.
Kathleen Hunter contributed to this story.
First posted June 11, 2008 2:35 p.m.




Comments
Laurie - Yes unemployment is up but when I look at all the high paying jobs online (& low paying) I just cant help but think many people dont realize the number of jobs hiring and the salaries they are offering: http://www.realmatch.com http://www.simplyhired.com http://www.monster.com Does anyone HAVE to be unemployed??
FYI, for each of those jobs you've found online, there are at least 100 applicants trying to get it. Let's also consider how many people over the age of 40, all the way up to 65 desperately looking for jobs, that don't stand a chance against the younger workers. Some cities have jobs, some have NONE. Don't fool yourself, or try to fool anyone else...this mess is the creation of the current administration, who will refuse to help, until we have lost almost everything and are on our hands and knees begging....only then will they offer a helping hand, but that hand will have devastating stipulations attached to it, just as it's always been in every crisis situation they've been involved in all over the world.
POST A COMMENT
Oops! The following errors must be addressed: