Bush ‘Demands’ Congress Pass Stimulus Plan By November’s End; Daschle ‘Insistent’ on More Spending for Unemployed

President Bush on Oct. 31 "demanded" that Congress pass an economic stimulus package by the end of the month, while Senate Majority Leader Tom Daschle (D-S.D.) repeated his vow to provide additional benefits and health insurance for unemployed workers in a stimulus bill, the Washington Post reports. White House spokesperson Ari Fleischer yesterday "indicated no willingness" by the administration to "budge on Democratic demands" for additional spending to help unemployed workers. Bush said, "My call to Congress is: Get to work and get something done" and "get it to my desk before the end of November" (Milbank/Kessler, Washington Post, 11/1). The House last week approved a $100 billion GOP-sponsored bill (HR 3090), which Bush supports, that includes a number of tax cuts, as well as $3 billion in grants to allow states to expand health coverage for unemployed workers. On Tuesday, Senate Republicans unveiled an $89 billion plan that includes a number of tax cuts recommended by Bush (Kaiser Daily Health Policy Report, 10/31). However, Democrats have pushed for additional funds to increase benefits and to help provide health coverage for unemployed workers. "We will fight with all that we've got to ensure that the unemployment compensation and health benefits are covered in any economic plan that Congress passes," Daschle said (Washington Post, 11/1). Senate Finance Committee Chair Max Baucus (D-Mont.), for example, has proposed a $70 billion plan that would establish a 50% subsidy to help unemployed workers purchase health insurance through COBRA and allow more unemployed workers to qualify for Medicaid. COBRA, the 1986 Consolidated Omnibus Budget Reconciliation Act, allows unemployed workers to retain health coverage under their former employers' insurance plans by paying 102% of the premiums (Kaiser Daily Health Policy Report, 10/31). Bush and Republicans support a plan that would increase the Social Services Block Grant program funding by $3 billion to allow states to provide health insurance to unemployed workers and their families through a number of programs (Kaiser Daily Health Policy Report, 10/29).

Cold 'Embrace'?
Daschle "complained" that Bush had at first "embraced" a plan to offer subsidies to unemployed workers to purchase health insurance through COBRA but shifted his position (Norton/Caruso, CongressDaily, 10/31). Treasury Secretary Paul O'Neill said Tuesday that he would urge the president to veto legislation that includes health insurance subsidies, which O'Neill said would place the government in a "position where it's now going to create a new entitlement" (Kaiser Daily Health Policy Report, 10/31). Despite the "apparent impasse," Daschle said he hopes the Senate will vote on an economic stimulus legislation as early as next week. Baucus added that the Senate Finance Committee may vote on a bill next Tuesday (Norton/Caruso, CongressDaily, 10/31). He has met with committee ranking member Sen. Charles Grassley (R-Iowa), and said he hopes to reach an agreement. Democrats "appear willing" to meet some Republican demands on business investments, and Republicans "appear open to greatly increasing the size of health insurance payments," the Washington Post reports (Washington Post, 11/1). However, CongressDaily reports that "it is unclear whether enough Democrats would be willing to accept" tax cuts "in exchange for health and worker benefits."

Dems, Unions Meet
Meanwhile, about 25 Senate Democrats yesterday met with "about a dozen" labor union presidents to discuss benefits for unemployed workers in an economic stimulus package. Bill Samuels, legislative director of the AFL-CIO, said that unions support expanded unemployment benefits, subsidies to help unemployed workers purchase health coverage through COBRA and increased federal Medicaid matching funds for states. "We would oppose any bill heavily weighted to tax cuts," he said (Earle, CongressDaily, 10/31).