March 5, 2010
This week, both the House and Senate struggled to pass jobs measures while balancing budgetary concerns raised by moderate Democrats against liberals' contention that not enough is being done. The House narrowly passed, by a vote of 217 to 201, the jobs bill previously approved by the Senate (H.R. 2847). However, in doing so it had to include a deferral of certain tax breaks to comply with the so-called "pay as you go" rule requiring new spending or tax relief to be offset by other measures. The bill includes $13 billion in payroll tax relief and tax credits aimed at stimulating new hiring. Responding to concerns that the bill is too modest, Speaker Nancy Pelosi (D-CA) asserted that "a million jobs will be created by this legislation.” Because of the changes, the bill now has to return to the Senate. Meanwhile, the Senate started work on a much broader $150 billion bill (H.R. 4213) that it hopes to pass next week. In addition to defined benefit pension funding relief, the measure includes extension of COBRA subsidies and Unemployment Insurance enhancements through December 31. A shorter extension through the end of March was signed this week by President Obama after Sen. Jim Bunning (R-KY) abandoned a controversial effort to block that measure because of its budget impact.