Unemployment insurance extension stalls in Senate

An effort to expand unemployment insurance for millions of Americans stalled Thursday in the Senate amid criticism the proposal is unfair to some states.

The bill, which easily cleared the House last week, would offer an additional 13 weeks of benefits to jobless Americans in states with unemployment rates above 8.5 percent. Currently, unemployed persons can collect this assistance for about 26 weeks in most states.

Both Democrats and Republicans seem to agree with the thrust of the legislation, but Senate lawmakers in particular are now voicing their concerns that the proposal would disadvantage jobless workers in the 23 states that have unemployment levels below the bill's 8.5 percent threshold.

They instead propose a new system that would grant four more weeks of unemployment insurance to jobless Americans in all states, but 13 weeks of additional help for unemployed citizens in states above the designated minimum.

"Unemployed workers face equally severe challenges no matter what state they live in, and they should be given the support they need," said Sen. Jeanne Shaheen, D-N.H. during floor debate, as reported by The Associated Press.

Shaheen, along with 15 of her Democratic colleagues and two independents, also echoed those concerns in a letter to Senate leaders on Wednesday.

But lowering the bill's unemployment threshold could prove difficult. House lawmakers confronted this very issue during floor debate last week, and they resolved to keep the minimum rate at 8.5 percent to ensure their $1.4 billion proposal did not add to the deficit. Efforts to raise that number would likely require lawmakers to raise the unemployment tax from $14 a year to something much higher, explained Rep. Jim McDermott (D-Wash.), the bill's sponsor.