March 10 (Bloomberg) -- The U.S. Senate approved a $138 billion measure that would extend unemployment benefits and provide additional aid to states in the second major effort this year by lawmakers to boost the economy.
The chamber voted 62-36 to approve the legislation, which would also extend dozens of expiring tax cuts, ease corporate- pension requirements and head off cuts in Medicare reimbursements to doctors. The bill, partially financed by offsetting savings, would add $97 billion to the deficit, according to the Congressional Budget Office.
"This has been and continues to be a horrific recession," said Senator Bob Casey, a Pennsylvania Democrat. "In addition to aiding families who are desperately in need of putting food on their tables and a roof over their heads, an extension of the unemployment insurance has a direct impact on our nation's economy."
The vote sends the bill to the House. Increased unemployment benefits are one of the best ways of providing short-term stimulus to the economy because the cash-strapped are likely to quickly spend any aid, which boosts overall demand in the economy, according to CBO.
The Labor Department today reported the unemployment rate in January climbed in 30 states and decreased in nine. Sixteen states had jobless rates topping the nationwide 9.7 average unemployment rate. Unemployment in California, Florida, Georgia, North and South Carolina and the District of Columbia climbed to the highest levels since records began in 1976.
rest at http://www.bloomberg.com/apps/news?pid=20601087&sid=aj54ARnTfC4k&pos=8
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