Unemployment extension

Is there an unemployment extension in NY at this time?

I am not aware of any--let me know if there is.

Feb. 7 -- The U.S. Senate approved a $151 billion economic stimulus measure that will send tax rebates to more than 100 million U.S. households.

In an 81-16 vote, senators agreed to expand legislation approved by the House last week to include rebates for 20 million senior citizens and 250,000 disabled veterans. The bill retains incentives for businesses to invest in new equipment and increases the size of mortgage loans that government-chartered mortgage-finance companies can buy.

President George W. Bush said the Senate changed the House bill ``in ways I can support.''

``This bill will help to stimulate consumer spending and accelerate needed business investment,'' Bush said in a statement from the White House.

Democrats agreed to drop an extension of unemployment benefits and a provision on home heating assistance to get Republican support for the measure.

``Today's agreement will speed rebate checks to the overwhelming majority of Americans, giving them needed tax relief,'' said Democratic Senator Max Baucus of Montana, the chairman of the Senate Finance Committee.

Senate Republican leader Mitch McConnell of Kentucky said the vote demonstrates that lawmakers ``are concerned about the slowing of our economy, and we want to do some thing about it very quickly.''

The House of Representatives plans a vote on the measure later today.

Growth Slowed

Both the Senate measure and the House's narrower $146 billion version are designed to boost consumer spending and inject money into the slowing economy.

Economic growth in the fourth quarter slowed to a 0.6 percent pace, and U.S. employers cut jobs in January for the first time in four years, raising concern among some economists that the economy may slip into recession.

``This package of payments to individuals and incentives for businesses to invest will support our economy as we weather the housing downturn,'' said Treasury Secretary Henry Paulson in a statement.

Republicans yesterday blocked consideration of the stimulus measure approved by the Senate Finance Committee because they opposed Democrats' plans to add extended unemployment benefits, home heating assistance and alternative energy tax credits to the measure passed by the House.

Republicans said those provisions would delay final action of the measure and might persuade Bush to veto it.

Rebate Checks

``It's not everything we want,'' said Senator Charles Schumer, a New York Democrat, of the measure approved today. ``Should we have included more? Of course. Republicans blocked that. But it's still a very good package, and we feel very good about it.''

The House measure would send tax-rebate checks of $600 to $1,200 to about 111 million Americans who show at least $3,000 in earned income or who pay income tax. The Senate bill approved today follows the same formula, while allowing people living on Social Security or disability benefits to get a rebate as well.

The rebates phase out for individuals earning more than $75,000 and couples earning more than $150,000. Any taxpayer who has children and qualifies for any rebate will receive an additional $300 per child.

The bill also doubles the amount of equipment costs a small business can expense in the first year to $250,000 and allows a 50 percent bonus depreciation for businesses that buy major equipment.

Grassley Happy

Fannie Mae and Freddie Mac, the government-sponsored mortgage finance companies, will be allowed to buy loans worth as much as $729,750 for loans made between July 31, 2007 and Dec. 31, 2008, an increase over the current $417,000 loan limit, a move that could help struggling homeowners to refinance large mortgages at a lower interest rate. It will also allow the Federal Housing Administration to insure loans as high as $729,750 in expensive markets.

Senator Charles Grassley, the ranking Republican member of the Finance Committee who co-sponsored the Senate bill with Baucus, said he was ``happy'' the 13-week extension of unemployment benefits was dropped, saying he only supported it to reach a deal with committee Democrats. He said unemployment wasn't high enough to merit such an increase.

Today's decision by Democratic leaders to drop the jobless aid was made just a few hours after House Speaker Nancy Pelosi, a California Democrat, called for the Senate to add the rebates for retiree and disabled veterans and end the protracted debate over jobless benefits.

``I don't think any change in the bill is really worth the delay,'' Pelosi said.

Additional Measures

Schumer denied that Pelosi's comments undercut Senate Democrats' attempt to find more support for their version of the measure, which Senate Republicans blocked yesterday by a single vote. Democrats needed 60 votes to move the bill.

``I think it worked out very well between the House and Senate Democrats,'' Schumer said. ``Republicans told us that we would never get 60 votes.''

Democratic and Republican senators have talked about additional economic stimulus bills that would revive some of the proposals lost in today's compromise and add other ones such as increases in infrastructure spending.

``What's most important is that we do not suspend our efforts to provide relief to the unemployed and heating assistance to low-income families,'' said Senator Olympia Snowe, a Maine Republican who supported the Senate Finance Committee bill. ``The work of the United States Congress is far from over.''