Jobless benefts bill rejected

WASHINGTON -- Democrats tried but failed on Wednesday to reinstate and extend unemployment payments for job seekers before lawmakers go home for a weeklong Fourth of July holiday.

For the third time in three weeks, Republicans in the Senate blocked legislation that would have continued federal benefits through Nov. 30 for millions of Americans who have been out of work for prolonged periods.

Democrats fell one vote shy of the 60 needed to overcome the filibuster after Senate Majority Leader Harry Reid of Nevada persuaded Maine's two Republican senators, Susan Collins and Olympia Snowe, to vote for the assistance. Efforts to gain the final necessary vote, including a courtship of Sen. Scott Brown, R-Mass., came up empty.

"It is beyond disappointing," Reid said after the vote. "There are few words that can comfort these workers who go to sleep every night worried about their economic uncertainty."

Immediately after the vote, the Senate cleared for President Barack Obama's signature a measure to give homebuyers an extra three months to finish qualifying for federal tax incentives that boosted home sales in the spring.

The 60th vote for unemployment assistance would have been cast by Sen. Robert Byrd, D-W.Va., who died Monday. The effort to gain passage was further complicated by the defection of Sen. Ben Nelson, D-Neb., who voted against the bill.

Reid said the Senate will vote again when Byrd's replacement is named. After Wednesday's voting, the Senate recessed until July 12.

Under the bill, payments would be made retroactive to cover job seekers whose benefits expired at the end of May. Obama is expected to quickly sign the bill if it passes.

As in previous efforts, Democrats considered the $33.9 billion benefits package emergency spending that does not need to be offset by spending cuts elsewhere under a "pay-as-you-go" budget law.

That was a problem for most Republicans, who were largely united in opposition. The GOP argues that new federal spending that's not offset deepens the federal budget deficit at a time the government is ringing up record debt.

"The only reason the unemployment extension hasn't passed is because Democrats simply refused to pass a bill that does not add to the debt. That's it," said Senate Republican leader Mitch McConnell of Kentucky.

The votes on extended benefits are being closely watched by anxious job seekers in states with high unemployment rates, including Nevada, which suffers a highest-in-the-nation jobless rate of 14 percent.

Without an extension, 200,000 of the nearly 7 million people who have been unemployed for at least six months will lose their benefits every week. About 1.3 million already have lost benefits since the last extension ran out at the end of May, according to Labor Secretary Hilda Solis.

The Democrats' unemployment bill would provide up to a total of 99 weekly unemployment checks averaging $335 to people whose 26 weeks of state-paid benefits have run out.

The House, meanwhile, is scheduled to vote on the benefit extension on Thursday, and it is expected to pass. But with the Senate unable to act, the House action will be anticlimactic.

Reid originally envisioned the Senate voting tonight. The schedule grew complicated as Byrd's casket will be placed in the Senate chamber today for official Washington to pay final respects. Then, many senators are expected to travel to West Virginia on Friday for his funeral.

After a late scramble to attract one more Republican, Reid called the vote for Wednesday evening. Although the tally was 58-38, Democrats were really just one vote short because Reid had to vote "nay" in a procedural move that allows him to call a revote later.

Reid blamed Republicans.

"We are not moving off this issue," he said. "We will be back to haunt (Republicans) for what they are doing to people who are in desperate shape."

Throughout the debate, Republicans signaled they would vote against the legislation as long as it was not paid for. That included Sen. John Ensign of Nevada, who said the nation faces a debt crisis that would only be made worse through additional spending.

In a speech Wednesday, Ensign said Democrats were employing "high-strung rhetoric" to paint Republicans as heartless to unemployed Americans.

"There is no debate on extending the benefits," Ensign said. "The debate lies in the fact that the other side wants to take the easy way out and avoid paying for this important legislation by passing another $30 billion onto our record-breaking national debt. It is tough to make cuts."

In Las Vegas, about 30 people gathered in front of the Lloyd George U.S. Courthouse in a bid to increase pressure on Ensign to vote for the jobless benefits.

Danny Thompson, executive secretary-treasurer of the Nevada State AFL-CIO, said Ensign "has failed to support his own state."

Unemployed painter Richard Nielsen, who attended the union rally, said he hasn't had steady work in almost a year. He has received a foreclosure notice on his home and is trying to modify his mortgage. He said he needs to have his unemployment benefits extended.

"I've paid my taxes since I was 16, and now I'm struggling," Nielsen said. "They have to pass this bill. It means a lot to people."

However, many Republicans and some Democrats worry about adding to the growing national debt.

"No one's disputing the value of these very important programs," Brown said in Washington. "But we also have to have tough choices, and we also need to live within our means."

Sen. George Voinovich, R-Ohio, said he offered to support the bill if it was paid for with unspent stimulus money.

"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," Voinovich said. "I came to the table with a fair compromise, and the ball is in their court."

At a news conference Wednesday, Reid rejected calls to tap the stimulus funds. He said lawmakers who argue that the stimulus money is available "don't know what they are talking about. These are monies that are creating jobs."

The issue of unemployment insurance is one where Reid differs from his Republican challenger, Sharron Angle.

Angle said Tuesday in an interview with political analyst Jon Ralston that she would vote against extending jobless benefits. It is getting to the point, she said, "where people are afraid to go out and get a job because the job doesn't pay as much as the benefit. There are jobs that do exist."

"Nobody is getting rich off unemployment insurance," Reid said Wednesday.

"People want to work," Sen. Debbie Stabenow, D-Mich., added. "They are not lazy. They have gotten caught up in something not of their making, and we have never before chosen not to view this for the emergency that it is."

Senate Democrats initially combined the unemployment benefits with the extension of the homebuyer tax credit. Once the combined measure failed, the Senate passed the homebuyer provision by unanimous voice vote.

Under current law, homebuyers who signed purchase agreements by April 30 must close on their new homes by Wednesday to qualify for credits of up to $8,000.

The bill would give those buyers until Sept. 30 to complete the purchases and qualify for the credit. The House passed that measure Tuesday as a stand-alone bill.

In the House, all three Nevada representatives -- including Republican Dean Heller -- voted Tuesday in favor of an unemployment insurance bill. But Democratic leaders brought it to the floor under a fast-track procedure that required a two-thirds majority to pass, and it fell short by a 261-155 vote.

The same bill will be brought to the floor under normal procedures today, requiring only a simply majority to pass.

"Extending unemployment benefits while we work to create good jobs in Nevada can mean the difference between a family making a mortgage payment or losing their home to foreclosure," said Rep. Dina Titus, D-Nev.

Review-Journal reporter Alan Choate and The Associated Press contributed to this report. Contact Stephens Washington Bureau Chief Steve Tetreault at stetreault@ stephensmedia.com or 202-783-1760.