Senate Democrats near deal to reduce jobless plus-up to $300

Senate Democrats are nearing an agreement within their caucus to reduce the plus-up in federal unemployment benefits in the COVID-19 relief bill to $300 from the $400 included in the House bill.

Democratic centrists led by Sens. Joe ManchinJoseph (Joe) ManchinOvernight Defense: Capitol Police may ask National Guard to stay | Biden’s Pentagon policy nominee faces criticism | Naval Academy midshipmen moved to hotels Progressives won’t oppose bill over limits on stimulus checks Senate votes to take up COVID-19 relief bill MORE (D-W.Va.) and Tom CarperThomas (Tom) Richard CarperBiden to meet with bipartisan lawmakers on infrastructure Five takeaways from dramatic Capitol security hearing Democrats worry Senate will be graveyard for Biden agenda MORE (D-Del.) support keeping the weekly benefit at $300 given the cost of the $1.9 trillion relief measure.

 The “contours” of the emerging deal call for keeping the weekly unemployment benefit at $300 but extending it to Oct. 4 to avoid the so-called “August cliff,” according to a Senate Democratic aide briefed on the matter.

In a concession to liberals, the deal would also make up to $10,200 in unemployment compensation exempt from taxes. The tax break would apply to benefits received in 2020.

People who have already filed their tax returns for 2020 would be allowed to file an amended return.

The change is likely to anger progressives in the House and Senate, but may reflect the realities of the 50-50 Senate, where a single Democrat can join with Republicans to provide 51 votes. 

A number of centrist Democrats have been seen as worried about the cost of the legislation and the jobless benefits had been a point of contention.

Sen. Tom Carper (D-Del.) said Thursday that he was thinking about offering an amendment to keep weekly unemployment benefits at $300 instead of the $400 a week proposed by President BidenJoe BidenTrump State Department appointee arrested in connection with Capitol riot FireEye finds evidence Chinese hackers exploited Microsoft email app flaw since January Biden officials to travel to border amid influx of young migrants MORE and included in the House-passed relief bill.

“What the states have said is they don’t want to be jerked around, they want to have some predictability and certainty,” Carper told The Hill Thursday. “We’re working on something. We’ll see.”

The deal also comes after a strong jobs report on Friday found the economy added 379,000 jobs in February, a better than expected figure.

Senate Minority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellRon Johnson grinds Senate to halt, irritating many Klain on Harris breaking tie: ‘Every time she votes, we win’ How to pass legislation in the Senate without eliminating the filibuster MORE (R-Ky.) railed against Biden’s proposed $400-a-week unemployment benefit Friday morning.

“By one analysis, the Democrats’ extra cash bonus for laid-off workers who stay home will result in more than 60 percent of workers earning more money by staying home than they’d earn from returning to work,” he said on the floor. “This isn’t state unemployment insurance, it’s borrowing from our kids and grandkids to pay yet an additional cash bonus for not working.”

GOP arguments about the impact of generous benefits on the labor market appeared to resonate with some Democratic centrists.

“I was concerned about not making it so high that people wouldn’t want to go back to work,” said Sen. Angus KingAngus KingProgressives won’t oppose bill over limits on stimulus checks Senate votes to take up COVID-19 relief bill OVERNIGHT ENERGY: House Democrats reintroduce road map to carbon neutrality by 2050 | Kerry presses oil companies to tackle climate change | Biden delays transfer of sacred lands for copper mine MORE (Maine), an independent who causes with Democrats.