The new bill will effectively extend federal unemployment insurance benefits through Nov. 2010, and the closing period for qualification for the homebuyer tax credit to Sept. 30. It is technically a substitute amendment to the killed jobs legislation.
However, Senate Republicans bow to block the bill as they see it to be another legislation that will add to the growing budget deficit and now that the Dems are short by one vote they definitely need bipartisan support.
Senate Majority Leader Harry Reid already said Wednesday that he had commitments from two Republican senators to support the bill, however, since Sen. Byrd passed away the Democrats will be needing another vote to support the bill.
Under existing provisions of the law, homebuyers who signed purchase agreements by April 30
must close on their new homes by Wednesday to qualify for credits of up to $8,000. The bill would give those buyers until Sept. 30 to complete the purchases and qualify for the credit.
This legislation the Democrats say will help those who are having a hard time with the current economic crisis. Statistics place the unemployment of the United States at 7 million.