The Senate yesterday passed Majority Leader Reid's version of an initial jobs bill by a vote of 70 to 28. Earlier in the week, an important cloture vote was approved when five Republican senators joined 57 Democrats to allow consideration of the legislation to move forward.
The Senate bill contains the following provisions:
- Extends highway program authorization through December 31, 2010 at current funding levels.
- Provides additional revenue to keep the Highway Trust Fund solvent through the first quarter of 2011.
- Restores highway spending authority that was cut on September 30, 2009 due to a budget rescission in SAFETEA-LU.
- Allows public bodies to convert tax credit bonds to Build America Bonds.
- Exempts workers hired in 2010 that have been unemployed for at least 60 days from Social Security payroll taxes.
- Extends 2008 and 2009 section 179 expensing thresholds so that taxpayers may elect to write-off up to $250,000 of certain capital expenditures in 2010 in lieu of depreciating those costs over time.
Action on the bill now moves to the House. The fiscally conservative Blue Dog Democrats have raised concerns that other elements of the bill violate the House statutory PAYGO budget rules which require an offset for any additional spending. In addition, House Transportation and Infrastructure Committee Chairman Jim Oberstar (D-Minn.) has objected to the formulas used in the Senate bill to distribute the highway funding. While these issues are of concern to the House leadership, there is recognition that highway program authorization expires on Sunday, February 28, and some form of extension is needed. Therefore, they are considering a two to four week stop gap extension of the highway and transit programs packaged with an extension of unemployment insurance and COBRA subsidies.
In addition, the House leadership is concerned that changing the bill will require additional Senate action, which is not assured. After action is completed on this legislation, Majority Leader Reid intends to press for additional jobs related legislation, including additional funding for various infrastructure programs. The original House jobs bill included increased infrastructure funding.
