Congress set to leave for recess without moving unemployment

By Vicki Needham and Jay Heflin - 06/30/10 06:03 PM ET

The House and Senate appeared set Wednesday to leave Washington for a weeklong recess without extending unemployment benefits.

Lawmakers have come under intense pressure to move a $33 billion package to help the nation’s long-term unemployed, but after more than eight weeks of negotiations the Senate has been unable to reach a consensus on whether to pay for the measure with other spending cuts or tax increases.

If Congress fails to send the measure to the White House before the recess set to begin this weekend, more than 1.2 million people who have been out of work for six months or longer will lose their benefits. That figure will rise to 2 million by July 10, several days before lawmakers return from their holiday.

“Well over a million individuals have stopped receiving benefits,” Labor Secretary Hilda Solis told reporters Wednesday. “Every week hundreds of thousands of families who are relying on unemployment benefits can’t put food on the table.”

The stalemate comes ahead of June’s jobs report, which will be released by the Labor Department on Friday. It is expected to show a loss of jobs for the month, largely because the Census Bureau is shedding temporary workers. Only a small increase in private-sector employment is anticipated, meaning the 9.7 percent unemployment rate could edge closer to 10.

Both sides in the Senate were digging in on Wednesday.

Senate Majority Leader Harry Reid (D-Nev.) insisted unspent stimulus money won’t be used to pay for the measure, as suggested by some Republicans. He repeated his demand that the extension of benefits be considered emergency spending that does not need to be offset.

Reid, whose state has one of the nation’s highest unemployment rates, also ripped Republicans for holding up the legislation. He said extending benefits would help the unemployed and the economy, and implied the GOP was being un-American.

“These people don’t know what they are talking about,” he said of Republicans. “These are monies that are creating jobs. We are doing something that is very American — very American — that is helping people in an emergency."

Republicans have repeatedly argued that unused stimulus dollars should pay for the extension since the economy is recovering and that the money is no longer needed to stop the nation from backsliding into a double-dip recession. They also argue that the country can no longer afford to add to its record level of debt.

Reid contends he’s got two Republicans — Maine Sens. Olympia Snowe and Susan Collins — on his side, but is still one vote short of the 60 he needs to clear procedural votes because of the death earlier this week of Sen. Robert Byrd (D-W.Va.).

“If we had Sen. Byrd’s replacement, we would have 60,” Reid told reporters. “We have to wait and see what a couple of Republicans do.”

Without Byrd, Democrats hold 58 seats in the Senate, but Nebraska Sen. Ben Nelson (D) has sided with Republicans in insisting the extension be offset.

Republican Sen. George Voinovich (Ohio), who was considered a possible yes vote, reiterated his opposition in a statement on Wednesday. He said he suggested to Reid that his support could be gained if Democrats were willing to use unspent stimulus money for at least half of the unemployment extension.

“My concern is that the Democrats are more interested in having this issue to demagogue for political gamesmanship than they are in simply passing the benefits extension. I came to the table with a fair compromise and the ball is in their court,” he said.

Sen. Debbie Stabenow (D-Mich.), a chief sponsor of legislation to extend benefits, remained optimistic that a third and final Republican will back the bill and cancel out Nelson’s opposition.

“I am very hopeful that we will have the votes we need to overcome a filibuster by Republicans that has gone on way too long,” she said.

Senate Republicans have offered several bills that would extend unemployment benefits — ranging from one to six months in length — all of which are offset.

Sen. Jack Reed (D-R.I.) recounted several times that Congress extended the program in the midst of past economic downturns and didn’t pay for it. One of the more recent unpaid extensions occurred under President George W. Bush and lasted more than two years.

“The federal government has never declined to extend unemployment benefits as long as the unemployment rate was at least 7.4 percent nationally, and today it still hovers near double digits,” Reed said. “If we continue to delay, it just adds to the suffering of millions of people.”