Capitol Hill Reports - Senate Democrats Reach Compromise on Unemployment Extension

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Senate Democrats Reach Compromise on Unemployment Benefits Extension
Saturday, October 10, 2009
9:30 AM

Senate Democrats have reached an agreement on legislation that would extend emergency unemployment benefits -- implemented under the 2008 Supplemental Appropriations Act (P.L. 110-252) -- by up to 14 weeks for jobless workers in all 50 states. The bill would also extend benefits for six additional weeks in states with unemployment levels exceeding 8.5 percent. The cost of the measure is offset by extending the roughly $14 annual unemployment tax paid by employers for each employee through June 30, 2011.

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Senate Majority Leader Harry Reid (D-NV), Finance Committee Chairman Max Baucus (D-MT), and Senators Jack Reed (D-RI) and Jeanne Shaheen (D-NH) announced the deal today.

"Chairman Baucus and I worked with our colleagues Senators Reed and Shaheen for the last two weeks to broker an agreement that provides critical assistance to unemployed workers across the nation," said Reid. "This agreement recognizes the need to extend unemployment benefits for workers in every state whose unemployment benefits have run out or will do so in the next several weeks."

The compromise bill also would amend the American Recovery and Reinvestment Act (P.L. 111-5) to allow individuals receiving food stamps to remain eligible while receiving an additional $25 per week in unemployment benefits, and would allow victims of sexual assault who have left their job to be eligible for benefits under the "compelling family reasons" clause. In addition, the legislation would provide an extension of unemployment benefits that would otherwise expire to railroad workers.

Concerns over the price tag involving an unemployment extension to all 50 states compelled House Democrats to limit an extension to only those states where the unemployment rate is 8.5 percent or higher. The House passed its version (H.R. 3548) last month on a bipartisan 331 to 83 vote.

Majority Leader Reid attempted to bring H.R. 3548 to the Senate floor on Thursday, but Republican Whip Jon Kyl (R-AZ) objected. "I have no doubt at the appropriate time we will be able to work out some kind of agreement," Kyl said. "But our side is going to need some time to look at it. We will need some Republican ideas or amendments as well, and we will need a CBO score."

Reid is expected to offer the Senate Democratic compromise as a substitute amendment to H.R. 3548. The substitute amendment will then become open to Republican amendments. Senate votes in relation to H.R. 3548 could occur as early as Tuesday, Oct. 13. An unemployment extension proposal, in one form or another, is expected to pass the Senate with bipartisan support. Once the Senate clears its proposal, both chambers will have to agree to a final version before sending the bill to President Obama.