Congress OKs jobless benefits, housing credit

The House overwhelmingly gave final approval Thursday to an extension of unemployment benefits by up to 20 weeks, ending weeks of partisan wrangling, while sweetening a federal subsidy to boost the national housing market.

The legislation is headed to President Obama, who has indicated he will sign the measure. It would be the fourth time lawmakers extended the jobless benefits since the recession began in late 2007.

House Speaker Nancy Pelosi said the bill is an integral part of trying to put the economy back on track, and said every dollar invested in unemployment benefits stimulated $1.60 in new economic demand. “It’s hard to think of any other initiative we can name that is this beneficial to job-creation,” the California Democrat said.

The legislation also would extend a popular $8,000 homebuyer tax credit, which is credited with boosting home sales and is set to expire Nov. 30.

A new tax credit of $6,500 also was added for those who buy a home after living in their current house at least five years. Only first-time homebuyers were eligible for the original tax credit, which was part of Mr. Obama’s $787 billion stimulus.

The House passed the measure in a 403-12 vote, with Republican members casting all the ‘no’ votes. Some Republicans objected to giving out-of-work Americans more benefits because they said it discouraged the jobless from seeking work.

The bill would add 14 weeks of unemployment benefits in all states and up to 20 weeks in states with unemployment rates greater than 8.5 percent. Congress paid for the extra benefits by extending the federal unemployment tax on employers through June 2011.

The extension would help the roughly 2 million people whose unemployment benefits expire Dec. 31. Americans whose unemployment payments already stopped would have to re-apply.

The Senate passed similar legislation in September but partisan squabbling over the bill stalled it until Wednesday, when the revised measure passed 98-to-0.

The original House bill only extended the benefits in states with unemployment of 8.5 percent or higher, a condition opposed by lawmakers from states with lower but still painful jobless rates. It also did not include the extension of the homebuyer tax credit.

The country’s unemployment rate was 9.8 percent in September with new figures for October to be released Friday.