Latest version of Extenders bill fails, again.
Senate Fails to Pass Latest Version of “Extenders” Bill
As expected, the Senate on Thursday failed to get the votes necessary to end debate and proceed to a final vote on the American Jobs and Closing Tax Loopholes Act (HR 4213), the tax “extenders” bill that includes a range of investments in job training and worker support programs. This was the third attempt by the Senate to pass this legislation; two earlier versions also failed procedural votes last week.
Senate leaders made a number of key changes in an effort to reduce the bill’s overall cost, including trimming an extension of enhanced federal Medicaid assistance to states (FMAP) from about $24 billion to $16 billion, cutting approximately $9 billion by phasing out increased Supplemental Nutrition Assistance Program (formerly known as Food Stamps) benefits authorized under the Recovery Act, and eliminating the Federal Additional Compensation (FAC) program that provided an additional $25 in weekly benefits for certain jobless workers. However, the modifications were not sufficient to sway three moderate Senators – Republicans Susan Collins and Olympia Snowe of Maine, and Democrat Ben Nelson of Nebraska – who once again voted against the bill over concerns about the impact of the bill on the federal deficit.
For now Senate Majority Leader Harry Reid (D-NV) has pulled the bill from the floor. The Senate is scheduled to begin work on a small business bill next week, meaning it is unlikely that the extenders bill would be considered again prior to the July 4 recess. It is not clear at this point whether the Senate will attempt to take up the measure again, although it seems unlikely that they will simply abandon the effort altogether given the extremely high priority of a number of provisions in the bill.
The investments in workers and the economy included in this bill – $16 billion for FMAP, $1 billion for summer youth employment programs, and $2.5 billion for a one-year extension of the Temporary Assistance for Needy Families (TANF) Emergency Contingency Fund – are critical if our nation’s economic recovery is to continue. The failure to pass the extenders bill is already having a significant impact. Due to continued inaction, nearly one million jobless workers have already lost their extended federal unemployment insurance (UI) benefits and that number will climb to as many as two million people if Congress fails to act before the upcoming July 4 recess. States, localities, and school districts have cut 231,000 jobs since 2008 due to budget pressures, including 22,000 jobs in May alone. Without additional federal aid, state budget-cutting actions could cost the economy 900,000 jobs in the public and private sectors next year. Without this bill, we will lose as many as 300,000 summer jobs for low-income youth and nearly 200,000 subsidized jobs for TANF recipients and other low-income individuals.
Although next steps remain unclear, it is vitally important that Congress act now to protect millions of jobless workers and our nation’s still fragile economy.
National Skills Coalition will continue to monitor this legislation and provide updates as new information becomes available.
