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Bailout, CR, Economic Stimulus
Today, Friday, October 3, the House adopted the $700 billion economic rescue plan (S. Amdt. 5685 to H.R. 1424) by a motion of 263-171. The House began debate on the bailout this morning --following its rejection of a compromise bill on Monday, September 29. The Senate approved its $700 billion rescue package for the financial industry by a vote of 74-25 on Wednesday, October 1. The stock market moved higher this morning amid this news, but other economic news was grim as the debate started, with the Labor Department saying employers cut 159,000 jobs last month. That's a five-year high and it means 760,000 jobs have disappeared this year.
There was also a great deal of activity this past weekend, on both the Continuing Resolution (CR) and economic stimulus packages.
On Wednesday, September 24, the House passed a CR (H.R. 2638) on a 370-58 vote, to fund the federal government through March 6, 2009. Set at over $600 billion, the CR funds most federal programs at FY08 levels, allocates money to three FY09 appropriations bills and provides $22.9 billion for disaster relief. It includes the following spending bills -- Defense, Military Construction-Veterans Affairs, and Homeland Security, and extends activities authorized under the Trade Adjustment Assistance Act (TAA). The bill increases Pell Grant funding to $18 billion, $2.5 billion more than the previous level.
The CR passed overwhelmingly on the Senate floor on Saturday, September 27. It has now been sent to the President for his signature. The House and the Senate also voted last week on an economic stimulus bill, Job Creation and Unemployment Relief Act of 2008 (H.R. 7110). The House passed the bill by a vote of 264 to 158 on Friday, September 26. That same day, however, the Senate failed on a 52-42 procedural vote to obtain the 60 votes needed to proceed to consideration of its version of the economic stimulus bill (S. 3604). This closes the door on the opportunity to approve a second economic stimulus bill before Congress adjourns.
WIA funding had been a significant component of the stimulus package, with the House providing $500 million for workforce funding including $400 million for WIA Dislocated Workers and Youth formula programs and the Senate providing $600 million evenly divided between the formulas and directed to local areas.
The House was considering another version of the bill this week that Democratic leadership claimed was needed to address the economic downturn. The package is designed to create jobs mainly by funding large-scale infrastructure projects. Nevertheless, even if the House is successful in passing its version of the bill, it lacks the support needed to clear the Senate and win final approval by the President.
Promoting Innovations to 21st Century Careers Act
On Thursday, September 25, Senator Patty Murray (WA), Chairman of the Employment Workplace Safety Committee, introduced Promoting Innovations to 21st Century Careers Act (S 3573). It will authorize a series of competitive grants, at both the state and regional levels, to help youth transition from high school to post-secondary education and on to high-paying careers in thriving industries. Through partnerships with stakeholders in high school and post-secondary education, business, labor, workforce, and economic development, the bill calls for creating career pathways that also help to identify, engage, and reintegrate students who may have dropped out of high school.
To access the bill summary click here.
To access the bill click here.
Expanding TAA
On Saturday, September 27, Senator Max Baucus (MT), Chairman of the Finance Committee, announced that he will continue to push for a robust renewal and expansion of the Trade Adjustment Assistance program for American workers, even though the current TAA program was extended through March 2009 as part of the Senate-passed continuing resolution (CR). Trade Adjustment Assistance programs – for workers, for firms, for farmers, and for fishermen – are under the jurisdiction of the Senate Finance Committee. Baucus has proposed a major overhaul and expansion of the programs to make American services workers eligible for the same assistance as manufacturing workers, to help entire communities that may be negatively affected by trade respond and recover, to increase worker training funds, and to help America’s small businesses adapt to global competition and avoid layoffs altogether.
“I’m pleased to have short-term funding in place to continue critical Trade Adjustment Assistance programs that help keep our workforce growing and more competitive here at home, but the effort cannot stop here,” said Baucus. “Expanding and reauthorizing Trade Adjustment Assistance to help more American workers will remain my number one trade priority in 2009. Now more than ever, Americans need the help of TAA to better train for, find, and keep good-paying jobs here at home. More than twelve million American jobs depend on trade, but when the negative effects are experienced, TAA can provide help and new opportunity amid the pressures of a global economy.”
Trade Adjustment Assistance currently provides job retraining, income support, and health care benefits to manufacturing workers in instances when trade has a negative effect on their jobs. Chairman Baucus expects the U.S. Department of Labor to continue the TAA program with funds provided in the CR, despite the December 31, 2007 expiration of TAA’s authorization. Funding for the TAA for Firms program was also extended for the length of the CR.
Congressional Schedule Updates
A lame duck session -- quite possibly Monday, November 17 through Wednesday, November 19 -- is looking increasingly likely. On Wednesday, October 1, 2008, Senate Majority Leader Harry Reid (NV) announced that the Orientation for new senators would be November 17 – November 19, 2008. Senator Reid indicated that if there is a need, the Senate would also be in session, with votes, during some or all of those days – November 17 – 19, 2008.
On Sunday, September 28, the House voted to set Tuesday, Jan. 6, as the first day of the 111th Congress.
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