WASHINGTON – On the verge of passing a $ 1.9 trillion Covid-19 relief bill, Senate Democrats agreed to reduce the measure’s federal unemployment benefits to $ 300 a week and extend coverage through September, according to two Democratic sources.
This is a reduction from the version approved by the House, which included unemployment benefits of $ 400 a week through August, and occurs when the Senate begins a long series of votes on Friday to finalize the package.
The new figure is the result of an agreement between progressive and moderate Democrats, said a Democratic aide.
Moderates wanted the weekly benefit to be reduced to $ 300 a week. Many Democrats wanted a month’s unemployment bonus to avoid a “precipice” as it expires in late August, when Congress is normally out of session and may not be willing to come back to fix it.
It will be offered as an amendment by Senator Tom Carper, D-Del.
“Having an unnecessary cliff for unemployed workers is not a good policy,” said Carper in a statement. “We have found a way to avoid this and ensure that the millions of Americans who are still struggling to find work will see an immediate benefit before this year’s Tax Day.”
Senate majority leader Chuck Schumer, DN.Y., predicted that the aid bill would be approved.
“We are not going to make the same mistake that we made after the last economic center, when Congress did very little to help the country’s recovery, trapping us in a long, slow and painful recovery,” he said on Friday in the plenary of the Senate. “We will not be shy in the face of great challenges.”
The last-minute change shows that Democratic leaders are still working to secure the support of all 50 senators. Due to the likely unanimous Republican opposition, they cannot allow any defection if they want to approve the project in a narrowly divided chamber.
In addition, the Democrats’ unemployment benefit agreement allows the first $ 10,200 of unemployment benefits to be non-taxable, which Democrats say will avoid unexpected tax bills for the unemployed. It also extends tax rules on excess business loss limitations for another year, until 2026.
Senate minority leader Mitch McConnell, R-Ky., Criticized Democrats for seeking an aid package without Republican votes after the chamber decided 51-50 to start the debate on Thursday.
He insisted that Democrats should not receive credit for the economic recovery.
“We are already on the right path to recover from this crisis. It is not because of that account. It’s because of our work last year, ”said McConnell. “We are going to come back roaring, mainly not because of this account. In fact, in a way, despite this bill. “
Frank Thorp V contributed.