Capitol Hill Reports - Senate Inches Forward on Unemployment Benefits Extension Legislation

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Senate Inches Forward on Unemployment Benefits Extension Legislation
Wednesday, October 28, 2009
7:00 PM

After voting 87 to 13 in favor of moving to consideration of the Unemployment Compensation Extension Act (H.R. 3548) yesterday, the Senate today began the 30 hours of "post-cloture" debate on Majority Leader Harry Reid's (D-NV) motion to proceed to the bill. Partisan wrangling has been the primary reason for the weeks-long delay in moving to the bill, with Democrats accusing Republicans of obstructionist tactics via filibuster, and Republicans arguing that Reid has denied them the opportunity to offer their amendments.

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As passed by the House on September 22, H.R. 3548 would provide a 13-week extension for only 27 states that are experiencing unemployment rates at or above 8.5 percent. Leader Reid and 37 other senators are backing an alternative package that would provide 14 additional weeks of benefits for all 50 states, and another six weeks -- for a total of 20 weeks -- of benefits for states where unemployment is 8.5 percent or more. The Senate substitute is estimated to cost $2.4 billion, but is offset through an extension of the federal unemployment tax until June 30, 2011.

We reported last week that Sen. Johnny Isakson (R-GA) intends to propose a floor amendment that would extend the $8,000 home buyer tax credit through June 30, 2010, and also expand the credit by removing the first-time home buyer requirement as well as raising the annual income qualification limits to $150,000 for individuals and $300,000 for married couples. Other amendments filed but not yet offered to H.R. 3548 include a proposal by Sen. Robert Casey (D-PA) mandating increased IRS oversight of the first-time home buyer tax credit program, and an amendment by Sen. Mary Landrieu (D-LA) that extends through January 1, 2013, the workforce housing tax credits for the Gulf Coast areas hit by the 2005 hurricanes.

Unless an agreement is reached between Senate Republican and Democratic leaders on amendments, post-cloture debate will likely run the full 30 hours. Assuming a vote is required to end debate on the bill itself, then a final vote likely will not occur until next week. Once the Senate approves its version of the unemployment legislation, the chamber must negotiate a final version with the House before it can be sent to President Obama.

The White House weighed in on the issue yesterday, expressing its support for an unemployment benefits extension. "Millions of Americans want employment but cannot find it, and the Administration is committed to supporting these Americans as they look for work and struggle to raise their families and pay their bills," states the White House policy document.