Bill Extending Jobless Benefits Passes Key Vote In Senate

October 28, 2009 8:27 a.m. EST

Washington, D.C. (AHN) - A measure extending unemployment insurance for 14 weeks nationwide and an additional six weeks in states with high unemployment, overcame a procedural vote Tuesday night after weeks of delay due to disagreements over amendments. The same day, the White House issued a statement saying the bill would responsibly address effects of long-term unemployment due to the recession.

The bill passed a cloture vote by 87-13, with all those opposing coming from the GOP, including Sens. John Cornyn (R-TX), Jim DeMint (R-SC), Mike Enzi (R-WY), Jim Inhofe (R-OK). A final vote will have to held by the Senate and differences with the House version reconciled before the bill is sent to the White House.

The measure, the Unemployment Compensation Extension Act of 2009, gives 14 more weeks of benefits to the nation's jobless. States with unemployment rates of 8.5 percent or higher get an additional six weeks. The bill would cost $2.4 billion, and will be paid for with an extension of the federal unemployment tax (FUTA), which proponents have pointed out the Bush administration had proposed extending last year.

Rep. Jim McDermott (D-WA), the main sponsor of the legislation, has also said the cost of the measure will be offset by a reduction of unemployment insurance overpayment with new requirements for reporting of new employees.

The House passed the bill last month by a 331-83 vote. McDermott's original measure cost $1.4 billion and gives a 13-week extension only in states with high unemployment, but Senate Majority Leader Harry Reid (D-NV) and Senate Finance Committee Chairman Max Baucus (D-MT) introduced an amendment to provide added benefits to all states and give one week more to high-unemployment states.

Nationwide unemployment rose to a 26-year high of 9.8 percent last month. The losses added 7.6 million to the number of unemployed since the recession began in December 2007, putting the total to 15.1 million.

Disagreements over amendments had delayed passage of the bill in the Senate, and Reid had chastised the GOP in a floor speech before the vote. "The Republicans have held up this matter for approximately 3 weeks. What does that mean? It means that the first week, 49,000 Americans were people whose unemployment insurance ran out, and they had nowhere to turn. In 2 weeks--the math is simple--it was 98,000 Americans from all over America."

Apart from issues over amendments, Republicans had warned that the bill would extend benefits for a period totaling nearly two full years, giving credence to "the concerns of noted economist Martin Feldstein, who previously testified that extended unemployment would 'create undesirable incentives for individuals to delay returning to work. That would lower earnings and total spending.' "

The White House late Tuesday found it necessary to issue a statement to move the legislation along.

"Helping unemployed workers is an effective way to boost the economy and an important part of the Administration's broader efforts to move swiftly and aggressively to jump start job creation and grow our economy," it said " At the same time, fiscal responsibility is central to the medium-term recovery of the economy and the creation of jobs. The Administration therefore supports the fiscally responsible approach to expanding unemployment benefits embodied in he bill."