I/II.
http://www.nytimes.com/2010/06/25/us/politics/25jobs.html

<http://www.nytimes.com/2010/06/25/us/politics/25jobs.html>
June 24, 2010
Congress Fails to Pass an Extension of Jobless AidBy DAVID M.
HERSZENHORN<http://topics.nytimes.com/top/reference/timestopics/people/h/david_m_herszenhorn/index.html?inline=nyt-per>

WASHINGTON — Legislation to extend unemployment subsidies for hundreds of
thousands of Americans who have exhausted their jobless benefits teetered on
the edge of collapse on Thursday, as Senate Democrats and Republicans traded
bitter accusations about who was to blame for an eight-week impasse.

Senate Republicans and a lone Democrat, Ben Nelson of Nebraska, joined
forces to 
filibuster<http://topics.nytimes.com/top/reference/timestopics/subjects/f/filibusters_and_debate_curbs/index.html?inline=nyt-classifier>
the
bill in a procedural vote on Thursday. Visibly frustrated, the majority
leader,Harry 
Reid<http://topics.nytimes.com/top/reference/timestopics/people/r/harry_reid/index.html?inline=nyt-per>,
Democrat of Nevada, said he would move on to other business next week
because he saw little chance of winning over any Republican votes.

The vote was 57 to
41<http://politics.nytimes.com/congress/votes/111/senate/2/200>,
with the Democrats falling three short of the 60 votes needed to advance the
measure.

“You’ll hear a lot of excuses,” Mr. Reid said at a news conference. “The
bottom line is the minority just said no.”

Trying to appeal to Republicans, Mr. Reid on Wednesday night introduced yet
another version of the legislation, which also includes important tax
changes. But even as he unveiled the new package, aides conceded he did not
have the votes.

The Senate Republican leader, Mitch
McConnell<http://topics.nytimes.com/top/reference/timestopics/people/m/mitch_mcconnell/index.html?inline=nyt-per>
of
Kentucky, has insisted that the bill not add to the deficit. Democrats
argued that they had found ways to cover the entire cost of the $112 billion
measure, with the exception of the $35.5 billion extension of unemployment
benefits, which some Republicans said they could accept.

But some Republicans who had been negotiating with Mr. Reid said they
remained opposed to tax increases in the bill, and Mr. McConnell insisted
that Republicans would not support any increase in the deficit.

To dramatize the point, after blocking the Democrats’ bill, Mr. McConnell
proposed a one-month extension of unemployment benefits and some other
safety-net spending, to be paid for with about $10 billion in unspent money
from last year’s economic stimulus program.

Democrats had already proposed using some stimulus money to help pay for the
bill, and Mr. McConnell said he was simply endorsing the same idea.

“The only thing Republicans have opposed in this debate are job-killing
taxes and adding to the national debt,” Mr. McConnell said. Anticipating
that Democrats would reject his proposal, he added, “Their commitment to
deficit spending trumps their desire to help the unemployed.”

The Obama administration has not fought aggressively for the legislation but
the White House press secretary, Robert
Gibbs<http://topics.nytimes.com/top/reference/timestopics/people/g/robert_gibbs/index.html?inline=nyt-per>,
issued a statement chastising Republicans for opposing the bill.

“Republicans in the Senate obstructed a common-sense package that would save
jobs, extend tax cuts for businesses and provide relief for American
families,” Mr. Gibbs said, adding, “The president will continue to press
Congress to pass this bill and bring this relief that’s critical to our
economic recovery.”

Senator Max 
Baucus<http://topics.nytimes.com/top/reference/timestopics/people/b/max_baucus/index.html?inline=nyt-per>,
Democrat of Montana and chairman of the Finance Committee, who is the
primary sponsor of the legislation, said the bill had been cut back by about
$100 billion in response to Republicans’ demands for a smaller package.

In the latest version, the Democrats pared a provision to extend higher
Medicaid<http://topics.nytimes.com/top/news/health/diseasesconditionsandhealthtopics/medicaid/index.html?inline=nyt-classifier>
reimbursement
for the states, to $16 billion from $24 billion, and also found offsets in
spending to cover the cost.

Democrats, citing data by the National Employment Law
Project<http://www.nelp.org/>,
say that without Congressional action, 1.2 million Americans will exhaust
their jobless benefits by the end of the month.

The legislation would reinstate numerous expired tax breaks, as well as
provide an array of safety-net spending. To help cover the cost, Democrats
also proposed shifting some unspent money from last year’s economic stimulus
program, a move that prompted Republican cheers.

Even some Democrats have expressed deep reservations about adding to the
nation’s fast-growing deficit. Mr. Nelson and Senator Joseph I.
Lieberman<http://topics.nytimes.com/top/reference/timestopics/people/l/joseph_i_lieberman/index.html?inline=nyt-per>,
independent of Connecticut, who caucuses with the Democrats, have joined
with Republicans in opposing the bill.

House Democrats did not include the extra Medicaid money for states in its
version of the bill out of concern for the cost.

II.

http://news.yahoo.com/s/ap/20100625/ap_on_bi_ge/us_congress_spending;_ylt=AtBiU.raHiWoVTVdEL4B0T1I2ocA;_ylu=X3oDMTJxaDEwZ2xmBGFzc2V0A2FwLzIwMTAwNjI1L3VzX2NvbmdyZXNzX3NwZW5kaW5nBHBvcwM3BHNlYwN5bl9wYWdpbmF0ZV9zdW1tYXJ5X2xpc3QEc2xrA3JlcHVibGljYW5zaw--

Democrats mulling stand-alone jobless aid
By ANDREW TAYLOR and STEPHEN OHLEMACHER, Associated Press Writers
1 hr 56 mins ago

WASHINGTON – The demise of Democrats' jobs-agenda legislation means
that unemployment
benefits will phase out for more than 200,000 people a week. Governors who
had counted on fresh federal aid will now have to consider more budget cuts,
tax increases and layoffs of state workers.

Democratic officials said the House may try to revive the long-stalled
jobless aid bill next week as a stand-alone bill shorn of controversial tax
and spending provisions that prompted Senate Republicans to filibuster it on
Thursday.

But the Senate may not have enough time to clear the measure for President
Barack Obama's desk before leaving Washington for the Fourth of July recess.
The impasse has meant that more than 1.2 million people have lost
unemployment benefits averaging $300 a week.

The aides required anonymity to speak freely about internal party strategy.

Stymied by Republicans, Democrats are at a loss as they struggle to help
pump up the economy in the run-up to congressional elections this fall.

Senate Democrats cut billions from the bill in an attempt to attract enough
Republican votes to overcome a filibuster. But the 57-41 vote Thursday fell
three votes short of the 60 required to crack a GOP filibuster.

"Democrats have given Republicans every chance to say 'yes' to this bill and
support economic recovery for our middle class," said Senate Majority Leader
Harry Reid, D-Nev. "But they made a choice to say 'no' yet again."

President Barack Obama will keep pressing Congress to pass the bill, his
spokesman said. But Democrats haven't shown they can come up with the votes.

That's leading Democrats to consider breaking the jobless aid measure from
the catchall bill and try to pass it as a stand-alone $33 billion measure
next week before leaving Washington for a weeklong Independence Day recess.
Key Senate Republicans, Olympia Snowe and Susan Collins of Maine, are
pressing the idea.

But a Reid spokesman said the majority leader is committed to passing a Wall
Street reform bill next week and predicted Republicans would block any move
to do a stand-alone jobless aid bill after that measure passes.

The stand-alone approach proved to be the way forward for a measure to
temporarily spare doctors from a 21 percent cut in Medicare payments, which
Obama signed Friday.

The Medicare funding had been a part of the larger bill to provide
extended unemployment
benefits for laid-off workers and provide states with billions of dollars to
avert layoffs. When it became clear Senate Republicans would block the
larger bill, Democrats begrudgingly voted for the smaller Medicare fix.

"It is clear that Senate Republicans have no intention of passing any jobs
legislation, whether it is tied to physician payments or not," said House
Speaker Nancy Pelosi, D-Calif.

Congressional Democrats began the year with an aggressive agenda of passing
a series of bills designed to create jobs. One has become law, offering tax
breaks to companies that hire unemployed workers. Others stalled as
lawmakers, after hearing from angry voters, became wary of adding to the
national debt, which stands at $13 trillion.

"The debt is out of control," said Sen. Scott Brown, R-Mass.

Republicans said the bill would have expanded government, not boosted the
economy.

"The only thing Republicans have opposed in this debate are job-killing
taxes and adding to the national debt," said Senate Republican leader Mitch
McConnell ofKentucky. "What we're not willing to do is use worthwhile
programs as an excuse to burden our children and our grandchildren with an
even bigger national debt than we've already got."

The rejected bill would have provided $16 billion in new aid to states,
preserving the jobs of thousands of state and local government workers and
providing whatWhite House officials called an insurance policy against a
double-dip recession. It also included dozens of tax breaks sought by
business lobbyists and tax increases on domestically produced oil and on
investment fund managers.

Sen. Max Baucus, the bill's chief author, said Friday that Democrats may
wait a week or two before attempting again to push the bill through.

"There 's a lot of people not getting their unemployment checks. There's
going to be consequences of that," he said, adding that could put additional
pressure on Republicans to support the bill.

Baucus said "we'll wait and work on other legislation in the interim. ...
There were some bitter partisan feelings when we left. Maybe a little
cooling off will help."

The legislation had been sharply pared back after weeks of negotiations with
GOP moderates Snowe and Collins, but they were not persuaded to support the
measure. The latest draft would have added $33 billion to the deficit.

The Medicare bill signed by Obama delays cuts in payments to doctors until
the end of November — after congressional elections — when lawmakers hope
the political climate is better for passing a more permanent, and expensive,
solution.

There was some urgency to approve the funding because Medicare announced
last week it would begin processing claims it had already received for June
at the lower rate. Lawmakers said some doctors have already stopped seeing
new Medicare patients because of the cuts.

The bill increases payments to providers by 2.2 percent. The legislation,
which costs about $6.5 billion, is paid for with a series of health care and
pension changes that both Democrats and Republicans agreed to.

The Medicare cuts were required under a 1990s budget-cutting law that
Congress has routinely waived. The latest extension expired May 31 after
concerns about adding to the budget deficit held up the larger bill that
also included unemployment benefits.

Obama praised Congress for passing the measure, while urging lawmakers to
work on a more permanent solution.


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Peace Is Doable

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