House Democrats Reveal Details Of US Job-Creation Bill
By Corey Boles, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- House Democratic leaders unveiled details of
legislation Tuesday they hope will spur growth in the flagging job market while
at the same time providing continued support to long-term unemployed who can't
find work due to the severe economic downturn.
The legislation comes as the U.S. jobless rate stands at 10%, a quarter-
century high. Most economists believe the recession may be technically over, but
there are fears the recovery is proving to be largely a jobless one so far.
Heading into a tough mid-term election year, Democrats want to be seen as
acting to create jobs before lawmakers leave town for the holiday recess.
The bill would add roughly $74 billion to pay for investments in
transportation infrastructure projects and an increase in federal aid to states
so they can avert laying off public-sector workers such as nurses, teachers and
emergency-service personnel.
Lawmakers believe that spending more public money on roads and bridge repairs
is one of the quickest and most efficient ways to create new private-sector
jobs.
Democrats said this portion of the bill would be offset by $75 billion in
funds repaid by banks who refused infusions of taxpayer cash through the U.S.
Treasury's market-rescue program.
This contention has been criticized by Republicans who argue that any money
repaid through the Troubled Asset Relief Program, or TARP, is legally obliged to
be used to pay down the burgeoning federal budget deficit.
The bill would include $40 billion to extend federal jobless benefits,
subsidies to help pay for health-care costs for those who lost their medical
insurance when they lost their jobs, and to pay for the administrative costs of
the food-stamps program.
House Democrats said this section of the bill doesn't require a budgetary
offset because it could be considered emergency spending.
Rep. David Obey (D., Wis.) said the cost of the jobless benefits and health-
care subsidies would be reduced because a separate piece of legislation includes
two months worth of funding for the two programs' benefits.
The package also extends a cancellation of fees on loans made by the Small
Business Administration, and increases the proportion of loans made by private
banks to small businesses guaranteed by the agency to 90% from 85% of their
value.
House Majority Leader Steny Hoyer (D., Md.) said he hoped to take up the job-
creation bill on the floor of the House Wednesday.
The Senate isn't expected to turn to the issue of job creation until 2010
after it has concluded work on health-care legislation.
This explains why House Democrats have included an extension of the jobless
benefits in two different bills--a two-month extension in a must-pass defense
spending legislation, and the more generous six-month funding in the jobs bill.
The extension would mean that long-term unemployed people who exhaust their
jobless benefits before June 30, 2010, would qualify for additional weeks of
assistance.
The health subsidy would affect people who lost their medical-insurance
coverage when they were laid off. It offers a 65% subsidy of the cost of health
insurance for six months after they lose their jobs.
-By Corey Boles, Dow Jones Newswires; 202-862-6601; corey.boles@dowjones.com
(END) Dow Jones Newswires
12-15-091628ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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