By Andrew Clark Reuters Wednesday, January 22, 2003; 4:12 PM
WASHINGTON - The U.S. Senate on Wednesday rejected a Democratic attempt to again extend unemployment compensation for more than a million laid-off U.S. workers who have already exhausted all of their benefits.
The Senate voted 49 to 45 against adding the provision to a $390 billion spending package meant to wrap up last year's unfinished federal budget.
Faced with a weak economy, the U.S. Congress has already granted an additional 13 weeks of unemployment benefits to jobless workers on top of the 26 weeks they would normally receive.
But Democrats wanted another 13-week extension for the estimated million-plus workers who have already used up those extended benefits and still have not found new jobs.
"This is a reflection of an economy that's not working," said Rhode Island Democratic Sen. Jack Reed, the move's sponsor. "Highly skilled, highly educated, highly motivated people just can't find employment in this recession."
Republicans -- backing President Bush's calls to restrain spending -- have already faced down several Democratic efforts to add billions of dollars to the spending package for education, homeland defense and other domestic priorities.
They said current jobless rates could not justify the estimated $6.5 billion cost of another 13-week extension.
"A number of my Democratic colleagues seem to think we can never spend enough on unemployment," said Iowa Republican Sen. Charles Grassley, who chairs the Senate Finance Committee.
SPENDING DEBATE
A deadlock last year over federal spending left unfinished 11 of the 13 bills needed to fund the government in 2003. Most federal agencies have been running under stopgap funding arrangements since the current fiscal year began on Oct. 1.
The "omnibus" spending package before the Senate groups all the remaining spending bills. Bush has urged the new Republican-led Congress to pass it by the end of the month in order to clear the decks for the 2004 budget process.
Democrats charge Bush is shortchanging social programs to make room for his own policy priorities -- like the $674 billion tax cut package he announced earlier this month.
But the White House and congressional Republicans argue the United States cannot enjoy both "guns and butter" at a time when military budgets are rising fast, the economy remains weak and the federal budget has slipped back into deficit.
Earlier on Wednesday, the Senate rejected a Democratic attempt to delay a Bush administration plan to relax costly air pollution rules that apply when utilities, refineries and other industrial plants are repaired or expanded.
It voted 50 to 46 against a proposal to delay the Environmental Protection Agency's so-called "New Source Review" rules for six months until the National Academy of Sciences completes an analysis of how they would affect children and adults suffering from asthma and other breathing ailments.