Democrats break COVID impasse with deal on jobless benefits | TheHill - The Hill

Senate Democrats have reached a deal on unemployment payments after an hours-long delay snagged the nearly $1.9 trillion coronavirus relief bill.

Democrats will offer a proposal to provide a $300 per week unemployment payment through Sept. 6, according to a Democratic aide.

The deal would also make the first $10,200 of benefits non-taxable for households with an income less than $150,000.

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The deal comes as the Senate has been stuck in limbo for hours as Democrats tried to craft an agreement that could get 50 votes within the caucus.

In a win for Democratic leadership, Sen. 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.), who was at the center of the hours-long hold up, threw his support behind the deal.

“We have reached a compromise that enables the economy to rebound quickly while also protecting those receiving unemployment benefits from being hit with unexpected tax bill next year," he said.

"Those making less than $150,000 and receiving unemployment will be eligible for a $10,200 tax break. Unemployment benefits will be extended through the end of August," he added.

The agreement could let the Senate quickly resume its marathon voting session, known as a vote-a-rama, after it was paused following just one vote on whether to include a minimum wage hike.

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"We've made a lot of progress," said Senate Finance Committee Chairman Ron WydenRonald (Ron) Lee WydenProgressives won't oppose bill over limits on stimulus checks GOP pulling out all the stops to delay COVID-19 package Overnight Health Care: Biden slams Texas, Mississippi for lifting coronavirus restrictions: 'Neanderthal thinking' | Senate panel splits along party lines on Becerra |Over 200K sign up for ACA plans during Biden special enrollment period MORE (D-Ore.), who noted that they were still finalizing language.

Wyden said the agreement reached Friday evening would let Congress "avoid the August cliff," a reference to concerns that lawmakers would set the expiration for the payments while they were in the middle of a scheduled August recess. 

Democrats had initially unveiled an amendment earlier Friday from Sen. 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.) that would have provided the $300 per week payment until early October. It also made the first $10,200 non-taxable but did not put a cap on the income for households that could qualify.

Democrats had characterized Carper's amendment as a deal between moderate and progressive factions, underscoring the balancing act of their narrow majority. And it's a change from the House bill, which provides a $400 weekly payment through August. 

It quickly became clear on Friday afternoon, as a vote on raising the minimum wage stayed open for hours, that Democrats were scrambling to figure out the path forward. Senators pointed to Manchin, the most conservative member of the caucus, as the hold up.

Republican senators said they thought they had Manchin's vote to support a competing GOP amendment on unemployment that would provide a $300 per week payment through mid-July.

As the hours dragged on, senators told The Hill that 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 was actively calling Manchin to discuss the unemployment language with him. One senator told The Hill that by mid-afternoon they had already been on the phone two or three times.

The Senate is now expected to hold two votes on unemployment proposals: The Democratic deal and the GOP amendment from Sen. Rob PortmanRobert (Rob) Jones PortmanMandel gets Club for Growth nod in Ohio Senate primary Rick Scott caught in middle of opposing GOP factions Five takeaways from dramatic Capitol security hearing MORE (R-Ohio).

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Democrats break COVID impasse with deal on jobless benefits | TheHill - The Hill
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