Democrats in the U.S. Senate said Friday they had resolved their differences over unemployment aid in President Joe Biden’s $1.9 trillion COVID-19 aid bill, enabling them to move forward with the sweeping package after hours of delay, APA reports citing Reuters.
The deal would scale back the level of jobless benefits provided in the version of the bill that passed the House of Representatives last week and set up new tax breaks for people receiving them, according to Democratic aides.
“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 Democratic Senator Joe Manchin, a key centrist who had pushed to scale back the aid.
The compromise among Democrats, who control the chamber by the narrowest possible margin, allowed them to move to a series of votes in which Republicans would try to change the bill. The first Republican effort -- to adjourn for the night -- fell short by a vote of 48 to 50. The session was expected to last well into Saturday.
Biden supports the agreement, White House Press Secretary Jen Psaki said.
Unemployment aid was just one of many friction points in the sweeping bill. An attempt to raise the minimum wage fell short earlier in the day, and more votes were expected in a debate that could extend into the weekend.
The legislation currently calls for $400 per week in federal jobless benefits through Aug. 29, on top of state benefits, to help Americans who have lost jobs amid the economic trauma caused by the coronavirus.
The compromise would lower that weekly benefit to $300, but extend it through Sept. 6, according to a Democratic aide. The first $10,200 would be tax-free.
The agreement also extends a tax break for businesses for an additional year through 2026.
Democrats hold a slim majority in the Senate and House of Representatives. Congress is scrambling to complete work on the legislation so Biden can sign it into law before March 14, when some existing pandemic-related benefits are due to expire.
Senate Democrats must keep all 50 of their members on board, allowing Vice President Kamala Harris to cast the deciding vote if no Republicans support the bill.
Senate Majority Leader Chuck Schumer is walking a tightrope as he tries to steer the bill through the Senate, aiming to keep liberals and moderates happy while not alienating House Democrats.
So far, Senate Democrats have stripped out the House-passed minimum wage increase and modified $350 billion in state and local aid to steer more money to smaller states. If the Senate passes the bill, the House would have to sign off on those changes before Biden could sign it into law.
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