Senate strikes deal on jobless aid

Senate strikes deal on jobless aid
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The Senate reached a bipartisan deal on Thursday that would renew federal unemployment benefits for five months. 

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The plan put together by Sens. Jack ReedJohn (Jack) Francis ReedSenate panel again looks to force Trump’s hand on cyber warfare strategy Overnight Defense: Pompeo lays out new Iran terms | Pentagon hints at more aggressive posture against Iran | House, Senate move on defense bill Defense bill moves forward with lawmakers thinking about McCain MORE (D-R.I.) and Dean HellerDean Arthur HellerKennedy retirement rumors shift into overdrive McConnell: Midterms will be 'very challenging' for GOP Singer Jason Mraz: Too much political 'combat' in Washington MORE (R-Nev.) would provide retroactive benefits to people who lost federal help after the program expired on Dec. 28.

“There are a lot of good people looking for work and I am pleased we’re finally able to reach a strong, bipartisan consensus to get them some help,” Reed said. 

The bill is cosponsored by a broad swath of lawmakers from both parties, including Sens. Susan CollinsSusan Margaret CollinsGOP senators introduce Trump's plan to claw back billion in spending Hillicon Valley: Sweeping new data rules take effect | Facebook, Google already hit with complaints | Schumer slams reported ZTE deal | Senators look to save cyber post | Dem wants answers about Trump's phone security Senators express concern over Trump's decision to scrap top cyber post MORE (R-Maine), Rob PortmanRobert (Rob) Jones PortmanLongtime tax aide leaving Senate Finance Committee Ex-McConnell policy aide joining lobby firm WATCH: Sen. Flake: “More doubtful” North Korean summit will happen  MORE (R-Ohio), Lisa MurkowskiLisa Ann MurkowskiGOP senators introduce Trump's plan to claw back billion in spending Overnight Health Care — Sponsored by PCMA — VA reform bill heads to Trump's desk Senators introduce bill to measure progress in opioid fight MORE (R-Alaska), Mark KirkMark Steven KirkThis week: Trump heads to Capitol Hill Trump attending Senate GOP lunch Tuesday High stakes as Trump heads to Hill MORE (R-Ill.), Jeff MerkleyJeffrey (Jeff) Alan MerkleyThe federal judiciary needs more Latino judges Overnight Defense: Trump decision on Korea summit coming 'next week' | China disinvited from major naval exercise | Senate sends VA reform bill to Trump Senate sends major VA reform bill to Trump's desk MORE (D-Ore.), Cory Booker (D-N.J.), Sherrod BrownSherrod Campbell BrownMcConnell sees Ohio in play as confidence about midterms grows   Senate Dems to Mnuchin: Don't index capital gains to inflation Trump on collision course with Congress on ZTE MORE (D-Ohio) and Dick DurbinRichard (Dick) Joseph DurbinTrump has exposed Democratic hypocrisy on prison reform House easily passes prison reform bill backed by Trump This week: House GOP regroups after farm bill failure MORE (D-Ill.).

The bill will likely see floor action later this month, after the Senate returns from a one-week recess. Reed and Heller expressed confidence that they can garner enough votes to break a filibuster in the Senate and pass the measure.

The deal combines ideas from Republican and Democratic proposals.

It would use several offsets to pay for the $10 billion cost of extending the benefits, including pension smoothing provisions from the 2012 highway bill, which were set to phase out this year, and extending customs user fees through 2024.

The bill also includes an additional offset allowing single-employer pension plans to prepay their flat rate premiums to the Pension Benefit Guaranty Corporation (PBGC).

The measure would also prevent millionaires and billionaires from receiving the federal benefits.

The proposal also includes language pushed by Collins to strengthen reemployment and eligibility assessment (REA) and re-employment services (RES) programs, which provide help to unemployed workers when they enter their 27th week of benefits. 

So far this year, senators have tried and failed to renew the program, which was put into place in June 2008 and had been extended nearly a dozen times since then.

More than 1.3 million people lost their federal unemployment benefits in December after Congress failed to reach a deal. Democrats say the number of people losing the aid has risen to around 2 million since then.

The emergency federal program kicks in once workers who continue looking for a new job have exhausted benefits, usually after 26 weeks.

President Obama and House Democrats have been applying pressure on the Senate to hammer out an agreement. 

White House press secretary Jay Carney hailed the Senate agreement.

“This is not just the right thing to do for these Americans looking for work, it’s the right thing to do for our economy. The president urges the Senate to pass the bill and for the House to do the same so that he can sign it into law.”

Even if the bill gets through the Senate, it faces hurdles in the House. 

Still, Speaker John BoehnerJohn Andrew BoehnerJim Jordan as Speaker is change America needs to move forward Paul Ryan’s political purgatory Republicans fear retribution for joining immigration revolt MORE (R-Ohio) has said he would consider an unemployment bill that was fully paid for and included reforms to the program. 

Democrats had offered up a six-month proposal last week that called for using a large portion of the farm law’s savings to cover its $12 billion price tag. That option was unpopular among Republicans. 

The Senate deal also doesn’t include a Portman-led effort to end duplicate payments of Social Security disability and jobless benefits checks, which would have provided between $1 billion and $3 billion in savings. 

“I am so glad that both Democrats and Republicans have come together on a proposal that will finally give Americans certainty about their unemployment benefits,” Heller said. 

“This deal extends these important benefits for five months, pays for them, and brings buy-in from both sides of the aisle.”

Advocates pushing for a renewal have argued that another round of the program is warranted because the long-term unemployed comprise about 37 percent of all the jobless. 

The emergency program was first authorized in 2008 when the unemployment rate was 5.6 percent and has been reauthorized or expanded 11 times — most recently more than a year ago as part of the “fiscal cliff” deal.

The benefits have been gradually curtailed as part of the past two extensions, so the program still only serves about one-third of the long-term unemployed.

During the height of the recession, unemployed workers could earn upward of 99 weeks of benefits.

House Ways and Means Committee ranking member Sander Levin (D-Mich.) called the Senate agreement “a major step forward for millions of job-seeking Americans.”

“I urge Republicans in the House to follow this bipartisan path to assist the unemployed,” he said. 

“The need is urgent, as is our responsibility to act.”

— This story was last updated at 7:28 p.m.