Senate reaches unemployment benefits deal, ending logjam on Covid aid bill
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Senate Democrats clinched a deal on Friday night over unemployment benefits that will smooth the upper chamber's passage of President Joe Biden’s $1.9 trillion coronavirus relief bill this weekend.
After about a nine-hour delay following Sen. Joe Manchin's (D-W.Va.) resistance to an earlier agreement on jobless payments, party leaders announced a new accord with Manchin. The latest deal would provide $300 a week in extra unemployment benefits through Sept. 6, and up to $10,200 in tax relief for unemployed workers.
Democratic leaders also agreed to limit eligibility for that tax relief, restricting the tax-free status of the benefits to households with incomes under $150,000 a year.
The White House quickly announced its support after endorsing the earlier compromise.
"The President supports the compromise agreement, and is grateful to all the senators who worked so hard to reach this outcome,” White House press secretary Jen Psaki said in a statement on Friday night.
With Manchin's objections eased, Democrats plowed forward with a marathon “vote-a-rama” — an all-night ordeal in which any senator can offer an amendment to Biden’s bill. The Senate is now on track to pass the package on Saturday.
Earlier, it was expected that Vice President Kamala Harris would be needed to cast a tie-breaking vote. Republicans were down one member on Friday night, however, with Sen. Dan Sullivan (R-Alaska) flying back to his home state for his father-in-law’s funeral.
After Senate passage, the bill will go back to the House, where lawmakers must approve the changes before it reaches Biden’s desk.
“The president has made it clear we will have enough vaccines for every American by the end of May, and I am confident the economic recovery will follow," Manchin said after calling a truce Friday night. "We have reached a compromise that enables the economy to rebound quickly while also protecting those receiving unemployment benefits from being hit with unexpected tax bill next year."
The two parties spent Friday afternoon battling for Manchin's support on changes to federal unemployment benefits, showcasing how a 50-50 Senate can instantly swing power to one holdout.
Before the Senate started voting on amendments, Majority Leader Mitch McConnell reveled in what he called the “spectacle” of Democratic disagreement over one of the package’s biggest provisions. McConnell then forced a vote to adjourn for the night, which failed.
The version of the bill passed by the House last week would have raised the current weekly payment from $300 to $400, extending that benefit through August.
But earlier Friday, Senate Democrats agreed to an amendment from Sen. Tom Carper (D-Del.) that would have lowered the benefit to $300 and extended it through the end of September, in addition to providing up to $10,200 in tax relief for laid-off workers without any income restrictions.
The latest deal means that federal unemployment benefits will now expire on Labor Day, when the Senate is scheduled to be in recess. The prior deal would have ensured that benefits expired closer to a government funding deadline at the end of September, providing a natural legislative vehicle if another extension is needed.
The protracted delay in the Senate came as Manchin weighed a proposal from Sen. Rob Portman (R-Ohio) that would have extended the $300 unemployment benefits until July 18 — amounting to a cut from both Carper‘s proposal and the House bill.
The Senate ultimately passed Portman’s amendment, 50-49, with Manchin voting in favor. But that measure will be canceled out by another amendment reflecting the latest deal on unemployment benefits, which also has Manchin’s support, according to a Senate Democratic aide.
Even after the agreement with Manchin, there's still plenty more drama ahead, with the GOP seeking to inflict maximum political pain. Republicans filed more than 500 amendments, and dozens of them are likely to get a vote. Sen. Susan Collins (R-Maine), for example, offered an early amendment that would shrink the overall bill to $650 billion, reflecting the GOP’s push for more targeted legislation.
The first amendment on raising the minimum wage to $15 hourly by 2025 — offered by Senate Budget Chair Bernie Sanders (I-Vt.) — failed as expected, illustrating a broader divide over the issue between progressives and moderates in the Democratic caucus.
The protracted vote-a-rama is widely despised by members of both parties and guaranteed to leave sleepless members running on fumes just ahead of the bill’s passage in the upper chamber. But there's no way around it.
Senate Majority Leader Chuck Schumer vowed Friday that the Senate would "power through and finish this bill, however long it takes."
"We’re not going to make the same mistake we made after the last economic downturn, when Congress did too little," he said on the floor.
The legislative endurance run is part of the budget reconciliation process, which Democrats are using to pass Biden’s plan without the need for GOP support.
The Senate already slogged through one vote-a-rama last month, amending a budget measure that unlocked the reconciliation process, which allows Democrats to pass Biden’s package with a simple 51-vote majority in the upper chamber. The agony lasted nearly 15 hours, concluding around 5:30 a.m. after lawmakers voted on a raft of largely symbolic amendments.
But now the main event is Biden’s pandemic package itself — and some amendments are expected to receive bipartisan backing.
During the last vote-a-rama, Democrats and Republicans joined together to approve amendments ensuring that $1,400 stimulus checks wouldn’t go to “upper-income taxpayers,” to prevent undocumented immigrants from receiving stimulus checks and prevent tax hikes on small businesses during the health crisis, among other issues.
Many other amendments will be fruitless messaging votes.
“The whole term 'vote-a-rama' has never sounded to me like it should apply to the ‘world’s greatest deliberative body,’” Sen. Roy Blunt (R-Mo.) said on Thursday. “It is what it is and it always turns into a largely partisan exercise.”