Democrats reject White House offer for short-term extension of unemployment benefit


In late-night negotiations with Democrats in Congress on Thursday, White House officials offered a short-term extension of the popular unemployment benefit that pays unemployed Americans $ 600 a week, a provision in the CARES Act that formally expires. on Friday. But House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer rejected the offer, arguing that Republicans do not understand that the situation requires a more far-reaching solution.

“We had a long discussion and we just don’t think they understand the seriousness of the problem,” Schumer told reporters after he and Pelosi met with White House Chief of Staff Mark Meadows and Treasury Secretary Steven. Mnuchin.

Pelosi noted that it had been 10 weeks since House Democrats passed a $ 3 trillion bill in May that would have extended benefits for those without jobs to the current level of $ 600 per week, in addition to their weekly check. unemployment insurance. He condemned Republicans in Congress and the White House for not coming to the negotiating table sooner.

“I think they understand that we have to have an invoice, but they just don’t realize how big it must be,” Pelosi told reporters. She said a one-week extension of unemployment benefits would be “useless,” as people in many states have already stopped receiving the additional $ 600 bonus.

Although the CARES Act established July 31 as the last day to pay the additional weekly benefits, it establishes that you will pay your unemployment benefits in the weeks that end on Saturdays or Sundays. ended additional benefits in the week ending Saturday, July 25 or Sunday, July 26.

Meadows told reporters after meeting with Schumer and Pelosi on Thursday that the White House proposals “were not well received.” He criticized Democrats for not being willing to consider the extension in the short term.

“I think the Democrats are willing to allow the increase in unemployment to expire, they made it very clear, not once, not twice, but three times, and that’s why I’m not very optimistic that someone who has an increase in unemployment has some relief anytime soon, “Meadows said.

Schumer and Pelosi are expected to speak by phone with Meadows and Mnuchin on Friday to continue negotiations.

Even if Congress approved a short-term extension, there could be a gap of a few weeks until unemployed workers receive that benefit, unemployment experts say. States will need to reprogram their computers to enter the new dates for the additional payment, a major hurdle since many rely on outdated computer systems.

Earlier Thursday, the Senate passed a “shell” bill (47 to 42) proposed by Senate Majority Leader Mitch McConnell, which did not include any details, in an attempt to move forward on a short-term extension .

In a speech on the Senate floor, McConnell blamed Democrats in Congress for allowing the enhanced unemployment benefits to lapse. No Democrat voted to move the bill forward. Republicans Cory Gardner, Republican of Colorado, and Rand Paul, Republican of Kentucky, joined the Democrats in rejecting the motion, and eleven senators did not vote.

Senate Republicans proposed his own invoice on Monday, which would cost around $ 1 trillion, but would reduce the additional weekly payment to $ 200 until the states discover a system to replace 70% of a person’s salary, with around 50% paid by the states and the rest paid by the federal government.

Both Republicans and Senate Democrats mentioned measures Thursday that would expand unemployment insurance and tried to pass them unanimously, but all of these efforts were blocked.

Schumer argued in the Senate that Democrats had “asked to negotiate” for the past 10 weeks on his proposal. He accused McConnell of being “afraid to negotiate” and criticized him for not attending negotiations with Schumer, Nancy Pelosi, Mnuchin and Meadows.

The Senate would still need 60 votes to end debate on the measure, which has no substance yet. The final bill may be a compromise agreement reached with Democrats on unemployment insurance, a broader deal, or a series of amendments, any of which would also require 60 votes.

The first vote on the bill next week is likely to be on an amendment offered by Senators Mike Braun and Ron Johnson that would provide $ 200 per week or 66% of the wage replacement.

Republican Senators Mitt Romney and Susan Collins proposed an alternative Thursday that would offer two options for states: provide additional payments of $ 500 per week in August, $ 400 per week in September, and $ 300 per week in October, or total benefits that they replace 80% of wages.

Meanwhile, the American economy shrunken at a record 32.9% rate in the second quarter of this year, the Commerce Department said Thursday. Millions of Americans have applied for unemployment insurance and the death toll in the US due to COVID-19 exceeded 150,000 on Wednesday.

Alan He and John Nolen contributed to this report.

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