Senate Democrats Agree To Cut Weekly Unemployment Benefits to $300

Senate Democrats said late Friday that they had resolved their differences over unemployment benefits in President Joe Biden's $1.9 trillion stimulus plan, enabling them to move forward with the "vote-a-rama" after hours of delay.

Citing Democratic aides, Reuters reported that the compromise among Democrats would lower weekly unemployment benefits to $300, but extend it through Sept. 6 with the first $10,200 would be tax-free. The legislation currently calls for $400 per week in unemployment benefits until Aug. 29.

West Virginia Democratic Sen. Joe Manchin, who had earlier stalled passage of the bill to scale back the jobless benefits, has accepted the agreement that also extends a tax break for businesses for an additional year through 2026.

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

The unemployment benefit is among the friction points in the sweeping package, and a lot of votes were expected in the vote-a-rama or the long series of amendment votes that could extend into the weekend.

Democrats, both in the House or Senate, are scrambling to complete work on the bill so Biden can sign it into law before Mar. 14, when several existing pandemic-related benefits are about to end.

Debate on Unemployment Benefits Stalled by Joe Manchin

The Senate unexpectedly paused on passing the Biden's stimulus plan on Friday afternoon after Joe Manchin flirted with a Republican proposal supporting less generous unemployment benefits.

The vote-a-rama turned into a standstill after the conservative Democrat started talking to his Republican colleagues about supporting a proposal that would cut down the bill's $400 weekly unemployment benefits to $300.

The Senate then has been stuck in limbo for hours as senators tried to figure out how to make a deal on 10 weekly jobless payments.

Joe Manchin supports reducing a weekly federal supplement to $300, which is a decrease from $400 in the House-passed version of the bill, according to a New York Post report. There are also arguments on whether to have the supplement expire in July or September.

Joe Manchin did not immediately make up his mind even with Sen. Tom Carper sending out word that he would introduce an amendment lowering the unemployment benefits to $300 weekly.

Senate Majority Leader Chuck Schumer then put the chamber into an unusual pause for more than eight hours as both sides tried to get Manchin's vote in closed-door talks, according to New York Daily News. In a 50-50 Senate, Manchin's vote is crucial.

Before Manchin's approval, Sen. Mitt Romney said that Democrats must have concessions with the senator if they want to sustain the additional benefits through September rather than July as Republicans proposed.

"The answer is, if they need Joe, then give him what he needs. And then they say at that point, 'Maybe Speaker Pelosi won't take up the bill.' Well, baloney to that," Romney said in the New York Post report.

Sen. Angus King, a moderate independent from Maine who caucuses with Democrats, said this was sort of a loose group of senators, who are basically still concerned about the deficit, concerned about expenditures, and are trying to ensure if they are going to be spending $1.9 trillion.

Republican Sen. Rob Portman is pushing a plan that would hand out unemployment benefits at $300 until Jul. 18. This was supported by many business groups in the country, such as the Chamber of Commerce and the National Federation of Independent Business.

In the past days, Senate has narrowed the income eligibility for stimulus payments, crushed an effort to raise the federal minimum wage to $15-an-hour, and negotiated on the unemployment benefits, according to a Washington Post report.

Republican Sen. John Thune said they are completely stalled out with the latest developments on the package.

Republicans on Biden's Stimulus Package

Republicans said the overall bill is a liberal "spend-fest" that puts aside increasing numbers of vaccinations and signs of a stirring economy that the two crises are easing, according to an Associated Press report.

Senate Minority Leader Mitch McConnell said that the country is already set for a roaring recovery and that "Democrats inherited a tide that was already turning." However, Democrats beg to differ in McConnell's statement, as well as the number of unemployment benefits applicants last week.

According to another AP report, the number of Americans applying for unemployment benefits peaked higher last week to 745,000, which is a sign that many employers continue to cut jobs despite a drop in confirmed viral infections.

Before the pandemic hit the U.S., unemployment aid applications have never reached 700,000 in any week, even during the Great Recession.

A total of 4.3 million Americans are receiving traditional state unemployment benefits, including supplemental federal unemployment programs established to soften the economic damage from the pandemic.

WATCH: LIVE: Stalled Talks Drag Senate Vote on Biden's Covid Stimulus Into Weekend - From Bloomberg Quicktake