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Senate Tries to Break Deadlock on Emergency Unemployment Benefits
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June 18, 2010 3:59 p.m. EST
Topics: government, budgets and budgeting, politics, macro economics, economy, business and finance, national government, economy, United States
Tom Ramstack - AHN News Correspondent
Washington, D.C., United States (AHN) - The Senate continued trying to work through a deadlock Friday that is holding up unemployment benefits for more than a million Americans.
A jobs and tax bill that would extend the benefits failed to win the 60 votes needed for approval Thursday evening.
Without the extension, about 1.2 million workers unemployed for at least six months will lose benefits, beginning Friday.
“We’re not going to give up,” said Senate Majority Leader Harry Reid (D-NV) after the 56-40 Senate vote.
Another provision of the bill would give $24 billion to state governments to administer health care to low-income persons.
Friday afternoon, the Senate did approve a portion of the bill. It would prevent a 21 percent reduction in reimbursement rates to doctors who treat Medicare patients.
The $6.4 billion measure extends Medicare benefits for senior citizens by six months.
To offset the cost, the Senate changed Medicare billing regulations, anti-fraud provisions and tightened pension rules.
Approval still is needed in the House, which is expected next week.
Republicans who opposed the rest of the bill say extending jobless benefits and state aid would add to a deficit that has now reached $13 trillion.
In addition to the $24 billion for states, the unemployment benefits would add $40 billion to the deficit.
Vice President Joe Biden encouraged quick approval of the emergency unemployment benefits extension.
“We still need to continue to create jobs and spur job growth now,” he said.
He also sharply criticized Republicans who he accused of obstructing progress on the bill.
U.S. unemployment stalled at 9.7 percent in the latest monthly Labor Department report.
A 450,000 rise in unemployment insurance claims last week indicates joblessness might be on the rise again, imperiling the Obama administration’s $787 billion economic stimulus program, according to economic experts.
Biden announced the next step of the program, called the “Do Not Pay” list, on Friday.
The Obama administration seeks to prevent benefits and contractor payments from being given to Americans who are ineligible to receive them, such as deceased or incarcerated persons.
Improper payments by the government last year totaled $110 billion, the highest level on record, Biden said.
In the past three years, the federal government paid more than $180 million to about 20,000 deceased persons. Prisoners received another $230 million.
“This stuff seems obvious on its face,” Biden said. “It’s no longer acceptable to take taxpayer money and put it in the wrong hands.”
The government has funded about 170,000 projects under the American Recovery and Reinvestment Act and received 3,059 complaints alleging fraud, Biden said. The complaints resulted in 317 investigations.
Obama said more infrastructure projects need to be built under his economic stimulus program before the nation will return to firm economic footing.
He spoke about the economy during a trip to Columbus, Ohio, Friday. His speech in downtown Columbus was the beginning of what he called the “Summer of Recovery.”
“If we’re going to rebuild America’s economy, then we’ve got to rebuild America, period,” Obama said.
Building the infrastructure for the Internet and alternative energy were top priorities in the projects he mentioned.
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