| Published: | Jun 25, 2010 10:37 AM EDT |
| Updated: | Jun 25, 2010 7:38 AM EDT |
WASHINGTON (AP) - Congressional Democrats are looking for ways
to salvage their election-year jobs agenda after the Senate failed
to pass a long-sought extension of unemployment payments.
Senate Democrats cut billions from the bill in an attempt to
attract enough Republican votes to overcome a filibuster. But
Thursday's 57-41 vote fell three votes short of the 60 required to
crack a GOP filibuster, leaving the way forward unclear.
"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."
The demise of the bill means that unemployment benefits will
phase out for more than 200,000 people a week. Governors who had
been counting on federal aid will now have to consider a fresh
round of budget cuts, tax hikes and layoffs of state workers.
White House Press Secretary Robert Gibbs said President Barack
Obama will continue to press Congress to pass the bill. But
Democrats are at a loss as they struggle to find votes to help
boost the economy in the run-up to congressional elections this
fall.
The setback forced congressional Democrats to settle for a much
smaller victory: Congress passed a bill temporarily sparing doctors
from a 21 percent cut in Medicare payments, sending the measure to
Obama for his signature.
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 billion.
"The debt is out of control," said Sen. Scott Brown, R-Mass.
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 what White 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.
"This is a bill that would remedy serious challenges that
American families face as a result of this Great Recession," said
Max Baucus, D-Mont., the chief author of the bill. "This is a bill
that works to build a stronger economy. This is a bill to put
Americans back to work."
The legislation had been sharply pared back after weeks of
negotiations with GOP moderates Olympia Snowe and Susan Collins of
Maine, but they were not persuaded to support the measure. The
latest draft would have added $33 billion to the deficit.
The Medicare bill that passed Thursday would delay 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 would increase 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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