GOP Floats Federal Jobless Benefits Extension, With a Major Cut: Report

The Unemployment Insurance Technology and Accessibility Act would create a $500 million Labor Department grant program to provide states with funds to upgrade their technology. States that do not meet accessibility criteria within two years would be required to repay the grant.

The bill is co-sponsored by Sens. Dick Durbin, D-Ill.; Sherrod Brown, D-Ohio; Chris Van Hollen, D-Md.; Bob Menendez, D-N.J.; Catherine Cortez Masto, D-Nev.; and Jacky Rosen, D-Nev.

'Need to Pass Something'

Greg Valliere, chief U.S. policy strategist for AGF Investments, said in his Wednesday morning email briefing that Senate Majority Leader Mitch McConnell "needs to write a bill, fast. That's because his GOP colleagues are simply dealing with trial balloons and vague proposals; they need to pass something and begin negotiations with the Democrats, who sense a political opening."

A new round of stimulus won't happen until August, Valliere said, "which means the shaky economy won't get a booster shot until next month. A major obstacle, ironically, is that Republicans can't agree among themselves; a fight with Democrats is several days away."

Meanwhile, President Donald Trump has backed off his threat to veto a bill that doesn't include a payroll tax cut. "It appears that Trump would sign a bill without a payroll tax cut, which he said just days ago must be in the final measure," Valliere said.

— Related on ThinkAdvisor:

• Trump's Payroll Tax Cut to Be Included in Next Relief Bill
• Stimulus Alone Can't Save Economy: J.P. Morgan's Kelly
• Bernanke to Congress: Give States More Aid. Now.