Senate Democrats announced an agreement on unemployment benefits on Friday evening after opposing plans stalled President Joe Biden's coronavirus stimulus bill. The House version of the American Rescue Act included $400 in extra weekly payment to unemployed people until August.
Senate Democrats cut unemployment benefits to $300 a week
WASHINGTON, DC - DECEMBER 01: A bipartisan group of Democrat and Republican members of Congress as they announce a proposal for a Covid-19 relief bill on Capitol Hill on December 01, 2020 in Washington, DC. The roughly $908 billion proposal includes $288 billion in small business aid such as Paycheck Protection Program loans, $160 billion in state and local government relief and $180 billion to fund a $300 per week supplemental unemployment benefit through March, according to a draft framework.
Senator Rob Portman of Ohio, a Republican, responded with an offer of $300 payments until July 18. Senator Tom Carper of Delaware, a Democrat, proposed a smaller $300 payout to extend the deadline until the end of September.
Since he originally supported Portman's proposal, West Virginia Democrat Joe Manchin was blamed for the delay. According to the Associated Press, Manchin revealed the compromise with a Democratic aide. The latest proposal is somewhat close to Carper's, but the payments will end on September 6. The proposed plan also features a clause from Carper's proposal that prevents taxation on up to $10,200 in extended unemployment benefits beginning in 2020.
"We have reached a compromise that enables the economy to rebound quickly while also protecting those receiving unemployment benefits from being hit with an unexpected tax bill next year," said Manchin.
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Biden approves the stimulus bill compromise
As per the White House Press Secretary Jen Psaki, President Joe Biden favored the compromise agreement and is grateful to the Senators who worked hard to reach a deal. In a statement that Newsweek obtained, Psaki said, "The bill extends supplemental unemployment benefits into September, and helps the vast majority of unemployment insurance recipients avoid unanticipated tax bills."
According to The Hill, the Senate would vote on both the latest Democratic proposal and Portman's version of the amendment. Even if all Republican senators vote in favor of the Portman amendment, it is expected to fail without Manchin's vote. When the Senate is divided 50-50, Vice President Kamala Harris usually votes to break the tie. Sen. Dan Sullivan of Alaska, a Republican, had to leave the session early to attend his father-in-law's funeral. Democrats have a 50-49 vote without Sullivan.
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Manchin's refusal to vote delayed the process
The Associated Press reported that Manchin's refusal to vote for the bill's original version delayed voting in the Senate for nine hours. Other plans will now be voted on again, thanks to the new compromise.
Senator Bernie Sanders used this mechanism on Friday to propose a $15-an-hour minimum wage. This effort failed when seven Democrats voted against the amendment across party lines. The minimum wage increase was first included in the American Rescue Act. However, Senate parliamentarian Elizabeth MacDonough ruled that it did not meet the budget reconciliation process's criteria.
A stimulus bill will be approved by a simple majority using this procedure, but provisions contrary to the budget cannot be included. At the earliest, the vote-o-rama is expected to last until early Saturday morning. The date of the final vote is reportedly uncertain. The final kit will then be sent back to the House for approval.
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