WASHINGTON – The first major hurdle in a deal to extend federal long-term jobless benefits has been overcome, with a March 13 agreement by a bipartisan group of Senators.

The $10 billion package would extend federal jobless benefits for five months, and would be retroactive to when jobless benefits expired at the end of December . Since they expired, a Republican-led filibuster has quashed any chance of a deal getting made in the Senate, as the GOP sought to assure that the cost of the benefits were offset elsewhere in the budget.

This deal, which uses an accounting procedure known as “pension smoothing,” as well as an extension of customs user fees through 2024, was struck on the 13th. Five Republicans joined 55 Democratic senators to meet the 60-vote threshold to overcome a filibuster.

“We’re not at the finish line yet, but this is a bipartisan breakthrough,” said Sen. Jack Reed (D., R.I.) Before the bill can get President Obama’s signature, it first must be passed by the full Senate (a vote was expected in late March) and then later by the Republican-run House of Representatives, where getting any deal on an extension of benefits is going to be much more difficult.

Arguing against the bill, House Ways and Means Chairman David Camp (R-Midland) argued that the extension of unemployment compensation benefits is too costly and is hurting job creation.

“Despite Democrat claims that such spending on UI benefits is the ‘best stimulus,’ all this record-setting benefit spending has bought is the slowest recovery on record,” Camp said. “Perhaps not surprisingly, a new study identifies the EUC program as the cause of the painfully slow labor market recovery – as employers have withheld new job offers until after the Federal extended benefits program ends.  Another study reinforces that such programs have been behind recent jobless recoveries.”
Countered Ways and Means Committee Ranking Member Sander Levin (D-Royal Oak): “I strongly believe that if every Member of Congress would take even a few minutes to speak personally with unemployed workers, there wouldn’t be any question at all about the need to extend the federal UI program.”

A statement from Building Trades President Sean McGarvey said: “I am glad to see the Senate working together to move legislation that is beneficial to so many working men and women across this country. American construction workers are faced with unusually high and increasing unemployment, and the agreement between Democratic and Republican Senators demonstrates the need for bipartisan solutions for our economic challenges.”