Senate Votes to Extend Jobless Benefits

The Senate shrugged off threats of a veto by President Bush and voted Friday to again extend benefits for the long-term unemployed, a program that would otherwise expire in two weeks.

“We do have a serious problem on our hands with the expiration of these benefits, with thousands and thousands losing their unemployment benefits,” said Sen. Lloyd Bentsen (D-Tex.) and the sponsor of the Democratic measure. “Time is very much of the essence.”

Lawmakers used a voice vote to approve the package, which would provide up to 33 extra weeks of coverage to Americans who have exhausted the standard 26 weeks of benefits. Because of the recession, 300,000 people reach that mark each month without finding new jobs. The payments average $170 a week nationally, but vary by state.

Bush says the bill’s benefits are too generous and objects to some of the permanent changes it would make in the unemployment system.

“The unemployment package . . . is just headed for another veto,” warned Senate Minority Leader Bob Dole of Kansas.

Instead, the President endorsed a Republican alternative that would have limited extra coverage to a maximum of 20 weeks. It included an assortment of tax breaks for businesses and individuals that sponsors said would spur the economy. The alternative was rejected on a voice vote.

The Senate will next have to craft a compromise package with the House, which approved a different plan June 9. It, too, drew a Bush veto threat.

Democratic leaders will have to decide whether to seek middle ground with the Administration or challenge Bush to veto the measure in the middle of an election year.

Unemployment hit an eight-year peak of 7.5% last month, with 9.5 million Americans looking for jobs. The economy has been showing signs of reviving in recent weeks, but the recovery has been slow and Democrats believe the public blames Bush for the hard times.

Democrats used the issue against Bush last year, when the President killed two efforts to extend jobless benefits before striking a compromise with Congress. Bush complained about the costs of those measures, as well as this year’s.

Bentsen’s bill would cost $5.4 billion over six years. It would provide 33 weeks of extra benefits in states with the worst unemployment, and 26 additional weeks elsewhere.

The extra coverage would expire March 6 but would be phased out sooner if the national unemployment rate fell below 7% for two consecutive months.

It also would permanently make it easier for people to qualify for extra benefits in the future. The Administration has said it wants no permanent changes until a commission studying the problem finishes its work next year.

Bentsen’s measure would be financed by increasing taxes on people who collect some lump-sum pension payments and on some corporations, partnerships, securities dealers and thrifts.