Senate combines jobless benefits, homebuyer credit

WASHINGTON — Senate Democrats are working on a new way to jump-start their stalled election-year jobs agenda while saving unemployment benefits for hundreds of thousands of laid-off workers.

The plan combines in one bill the unemployment benefits with an extension of a popular tax credit for people who buy new homes.

Under current law, homebuyers who signed purchase agreements by April 30 must close on their new homes by Wednesday to qualify for credits of up to $8,000. The bill would give those buyers until Sept. 30 to complete the purchases and qualify for the credit.

Democrats hope to pick up Republican support for the bill by combining the two provisions. They have been trying for weeks to pass an extension of unemployment benefits as part of a larger tax and spending package, but the larger bill died in the Senate last week.

Without an extension, unemployment payments would continue to be phased out for more than 200,000 people a week.

Many Democrats see the benefits as insurance against the economy sliding back into recession. Many Republicans, however, worry that adding nearly $34 billion to the budget deficit will only contribute to the nation's economic problems.

"Both sides have offered ways to address the programs in this bill that we agree should be extended," said Senate Minority Leader Mitch McConnell of Kentucky. "The only difference is that Democrats are demanding that we add the cost to an already unsustainable $13 trillion national debt."

Republicans want to pay for the unemployment benefits with unspent money from last year's massive economic recovery package.

Senate Majority Leader Harry Reid, D-Nev., filed a motion Tuesday to end debate on the bill and force a vote by Thursday — if Democrats can round up the necessary 60 votes to end a Republican filibuster.

"These commonsense solutions to help millions of Americans deserve bipartisan support and should be passed swiftly," Reid said.

The House, meanwhile, overwhelmingly passed a bill Tuesday to extend the deadline for the homebuyer tax credit. House Democrats plan to vote on a bill extending unemployment benefits as early as Wednesday.