- Last week Congress failed to continue a law providing nearly a year of unemployment benefits
- That law was passed in 2008 when recession was at its worst
- Democrats says benefits sustain economic recovery, offer a lifeline to those looking for jobs
- Republicans counter the benefits are an economic drain and a disincentive to looking for work
President Barack Obama on Saturday called for bipartisan legislation to extend unemployment insurance, an all-important benefit for the longtime out-of-work.
"Just a few days after Christmas, more than 1 million of our fellow Americans lost a vital economic lifeline -- the temporary insurance that helps folks make ends meet while they look for a job," Obama said in his weekly address.
"Republicans in Congress went home for the holidays and let that lifeline expire. And for many of their constituents who are unemployed through no fault of their own, that decision will leave them with no income at all."
The insurance expired last week when lawmakers failed to continue a 2008 recession-era federal law providing nearly a year of benefits, paid for by U.S. taxpayers, that kicked in when state jobless benefits ran out.
Congress will start the new year with an old fight: whether to extend jobless benefits for 1.3 million long-term unemployed. Obama urged lawmakers to restore the benefits.
"Right now, a bipartisan group in Congress is working on a three-month extension of unemployment insurance -- and if they pass it, I will sign it. For decades, Republicans and Democrats put partisanship and ideology aside to offer some security for job-seekers, even when the unemployment rate was lower than it is today. Instead of punishing families who can least afford it, Republicans should make it their New Year's resolution to do the right thing, and restore this vital economic security for their constituents right now," Obama said.
Democrats argue the program is needed to sustain economic recovery and offer a lifeline to those struggling to keep their heads above water financially. Republicans counter the benefits are an economic drain and a disincentive to looking for work. The Congressional Budget Office estimates continuing them for another year will cost about $26 billion.
Many Republicans, including potential 2016 presidential candidate Sen. Rand Paul, R-Kentucky, have long insisted that the Great Recession-era extension of emergency federal benefits deters job hunting and is unnecessary as the economy rebounds and unemployment declines.
Obama said denial of the security provided by the benefits "is just plain cruel."
"We're a better country than that. We don't abandon our fellow Americans when times get tough -- we keep the faith with them until they start that new job," he said.
"What's more, it actually slows down the economy for all of us. If folks can't pay their bills or buy the basics, like food and clothes, local businesses take a hit and hire fewer workers. That's why the independent Congressional Budget Office says that unless Congress restores this insurance, we'll feel a drag on our economic growth this year. And after our businesses created more than 2 million new jobs last year, that's a self-inflicted wound we don't need," Obama said.
Senate Majority Leader Harry Reid, D-Nevada, plans to hold the first vote toward renewing the benefits on Monday, the day the Senate returns from its holiday recess. It will be a procedural test of a proposal to stretch the program another three months.
Democrats do not yet know whether they have enough Republican support to get the 60 votes necessary to clear the procedural hurdle, a senior leadership aide told CNN. The fight has played out repeatedly over the past few years as the two parties clashed in often dramatic showdowns rife with fiery rhetoric and lengthy filibusters.