Unemployment, Unemployment Benefits Extension | featured news

More than 230,000 jobless Americans will lose their unemployment insurance by this weekend as reductions in the federal program that provides extended benefits to the long-term unemployed take broader effect.

Republican officials say legislation being drafted in the House would renew an expiring program of unemployment benefits at a time of 9 percent joblessness. The measure also would extend a Social Security payroll tax cut. Both are due to expire at the end of the year. The officials say the cost of provisions will be offset to avoid increasing the deficit.

Senior lawmakers said on Sunday they were optimistic about striking a deal to extend Bush-era tax cuts for all taxpayers and continue emergency jobless aid for millions of long-term unemployed Americans.

Extended unemployment benefits for nearly 2 million Americans begin to run out Wednesday, cutting off a steady stream of income and guaranteeing a dismal holiday season for people already struggling with bills they cannot pay.

Republicans in the House have blocked a bill that would have extended jobless benefits for the long-term unemployed beyond the holiday season.

New U.S. claims for jobless benefits climbed more steeply than anticipated last week, according to a Labor Department report on Thursday that further underlined the drag on economic activity from persistently weak job markets.

Democrats are expected to overcome Republican opposition to the package of new aid for unemployed Americans.

Senate Democrats are set to pass a key hurdle Tuesday on extending unemployment benefits for an estimated 2.5 million unemployed Americans and are expected to overcome a Republican filibuster of the new aid.

A vote on the package is set for Tuesday, minutes after the swearing-in of a new West Virginia senator gives Democrats the ability to overcome a filibuster.

On the eve of a vote to extend jobless benefits, President Obama urged Republican senators to set aside partisanship and vote for a package that would provide relief to 2.5-million out-of-work Americans.

The unsavory task of explaining why America apparently can't afford to help the unemployed but can afford tax cuts for the rich fell to Rep. Mike Pence (R-Ind.) on Sunday.

White House Press Secretary Robert Gibbs predicted on Tuesday that the Senate will pass an extension of unemployment benefits sometime next week after nearly a month of delays over the size and scope of the package.

"I think this president will press and my belief is the Senate will take up [the package]," said Gibbs, "and we will pass next week an extension of unemployment insurance."

Speaking at the daily briefing, Gibbs hinted that the White House and allied campaign committees will be monitoring the vote closely for electoral implications.