Senate Democrats Try New Approach To Extend Unemployment Benefits

Stymied so far in their attempts to extend unemployment benefits as part of a larger piece of legislation, Senate Democrats have decided to carve out that extension, and one other potentially popular provision, in apparent hope that the scaled-down bill might be more palatable to Republicans.

Senate Republicans repeatedly have filibustered the overall American Jobs and Closing Tax Loopholes Act, which includes a measure to extend benefits to out-of-work Americans. GOP obstruction has run out the clock for more than 1 million jobless Americans, who are starting to see an end to their supplemental income. Almost half of those unemployed have been out of work for six months or longer, a level of long-term joblessness not seen since World War II.

Although she has helped sustain the GOP filibuster thus far, last week Sen. Olympia Snowe (R-Maine) wrote a letter to Senate Majority Leader Harry Reid (D-Nev.) seeking a vote on a stand-alone bill to extend unemployment benefits.

Reid and Sen. Max Baucus (D-Mont.) appear to be obliging, hoping that by coaxing support from Snowe, they finally may overcome a filibuster.

Reid and Baucus introduced legislation Wednesday to reinstate federal unemployment insurance benefits and extend the purchase closing date for new homebuyers to qualify for tax credits, two measures that were a part of the doomed American Jobs and Closing Tax Loopholes Act. They filed their bill as a substitute amendment to the American Jobs and Closing Tax Loopholes Act, according to a statement from Senate Democrats.

The Reid/Baucus substitute would retroactively reinstate federal unemployment insurance, so that Americans who lost their benefits when the program expired at the end of May can receive the support they need while they look for work, the statement says. A million or more Americans could be affected by the expiration of benefits thus far. The bill will extend federal unemployment insurance benefits, so Americans who lose their jobs through no fault of their own can continue to receive the benefits they depend on through November, according to the Democrats' statement.

Although the nation's unemployment rate has eased slightly in recent months, it continues to stand at decades-high of 9.7 million. In all some 15 million Americans are out of work as a result of the economic downturn that began more than two years ago.

Additionally, the substitute bill would extend the date new homebuyers who are already under contract must close by to qualify for the Homebuyer Tax Credit from July 1 to October 30, so that more American homebuyers can benefit from the program.

“Folks in Montana and across the nation are struggling to find jobs in this tough economy, and every day these benefits are lapsed is another day Americans worry how they will feed their families while they look for work. This bill restores the support American workers so desperately need and extends tax cuts for homeownership, which is the backbone of the American dream,” says Baucus, chairman of the Senate Finance Committee. “I urge my colleagues to stand with us to support American families and restore the unemployment insurance benefits that are often the only lifeline many workers have in this tough economy.”

The substitute measure also includes several provisions to help pay for the unemployment and homebuyer-credit extensions, including rescinding $94 million from Defense Department unobligated funds which will expire on Sept. 30, and are excess to current requirements.

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