Congress Watch: Unemployment Shenanigans Continue

(Joe Jansen has a decade and a half of experience working as a staff member on Capitol Hill.  He has worked in almost every legislative capacity in both the House and Senate. Joe will be a frequent contributor to TPA’s blog.) It has been more than a month since Senate Majority Leader Harry Reid (D-Nev.) declared that allowing the program that provided extended unemployment benefits for the long-term unemployed to “lapse in December is unconscionable.”  It was such a priority that there was no time to consider amendments that might actually help the economy grow and the long-term unemployed find work.

Last week, after passing the Farm Bill Conference Report, the Senate considered yet another version of legislation to extend unemployment benefits for the long-term unemployed.  The third iteration of this bill (the first refused to pay for extending the program and the second “paid” for it in 2024) sought to pay for the $6 billion, three-month extension through an offset called “pension smoothing.”  Under this plan, the amount that employers are legally required to place into their employee pension plans is reduced.  This reduction increases companies’ taxable income which, in turn, increases federal tax receipts.  This increase in tax receipts will cover the cost of extending the program.

This plan might have passed.  Unfortunately, Senator Reid resorted to procedural maneuvers to block Senators from offering any amendments to the bill.  Senators who had better ideas about how the extension should be paid for or how to help the economy grow were cut off from offering their amendments.  And, this refusal to consider other ideas stopped the bill from passing, for now.  It is doubtful that this will be the last we hear of this issue.  What is not in doubt is that if the Majority Leader would have let the Senate consider this bill without limitations back in January, we already would know its fate.

As the Senate wrangled with the extension unemployment benefits, the House was considering a number of bills that would appeal to narrower constituencies.  Among them was a bill to divert water in California from irrigating salmon runs to drought-stricken farmers; a package of ten bills that would ease regulation and red tape and promote activities popular with hunters, anglers, and firearms enthusiasts; and, another package of bills that protect and improve access to public lands.

Behind the scenes, House leadership was trying to figure out how to deal with immigration reform and the debt limit increase.  From public statements, it appears that the House will not consider immigration reform legislation this year.  And, House leaders have not yet determined the best way forward on a bill to increase the debt ceiling.

The near future promises more of the same on both sides of the Capitol.  The House will continue to pass legislation targeted at smaller constituencies as it figures out how to deal with increasing the debt ceiling by February 27^th.  Next week, the Senate will begin debate on a bill to repeal a provision of the recently enacted budget agreement.  The provision in question reduces the annual cost of living increase in benefits for military retirees under the age of 62.  This provision was used to offset the cost of increased spending.  The bill the Senate will consider does not pay the cost of repeal.  It will fail to garner the 60 votes necessary for cloture and the process used to consider the extension of unemployment benefits will unfold anew.