Stimulus Package Negotiations Break Down; Republicans Accuse Democrats of Stalling

Negotiations on an economic stimulus bill, which would likely include provisions to help unemployed workers purchase health insurance, "broke down" on Dec. 7 as Republicans and Democrats accused each other of "trying to sabotage the talks for political advantage," the AP/Las Vegas Sun reports. House Speaker Dennis Hastert (R-Ill.) said that Republicans postponed negotiations after Senate Majority Leader Tom Daschle (D-S.D.) said on Dec. 7 that any compromise reached by House and Senate negotiators must be ratified by at least two-thirds of Senate Democrats (AP/Las Vegas Sun, 12/9). Hastert accused Daschle of "acting in bad faith" and added that Republicans and Democrats had signed an agreement that would have allowed House and Senate negotiators to finalize a deal on an economic stimulus bill. That agreement would have required the approval of a bipartisan group of six House and Senate negotiators (Price, Washington Times, 12/10). White House spokesperson Ari Fleischer dismissed the two-thirds requirement as a "formula for partisanship, gridlock and inaction" (AP/Las Vegas Sun, 12/9). On NBC's "Meet the Press" on Dec. 9, Vice President Dick Cheney called Daschle an "obstructionist" and criticized the two-thirds requirement as an "artificially high barrier" that may delay an economic stimulus bill "until it's too late" (Allen, Washington Post, 12/10). President Bush on Dec. 8 also criticized Senate Democrats in his weekly radio address for delays in negotiations on economic stimulus (Washington Times, 12/9). However, Democrats attribute the delay to House Ways and Means Committee Chair Bill Thomas (R-Calif.), who canceled the negotiations and flew home to California this weekend "just as talks were scheduled to resume" (Norton/Earle, CongressDaily, 12/7). The Washington Post reports that the "chorus of partisan finger-pointing" may signal that no agreement "will be reached before the congressional session ends" (Kessler, Washington Post, 12/8).

Health Insurance Differences
Democrats support an economic stimulus bill that would provide expanded unemployment benefits and subsidies to help unemployed workers purchase health insurance, while Republicans favor additional tax cuts for individuals and businesses, USA Today reports (Keen/Welch, USA Today, 12/10). The Washington Post reports that Republicans and Democrats "appear to believe they have made as many concessions as possible" on economic stimulus. According to sources, "no substantive negotiations had even taken place" last week, even though talks had officially begun (Kessler, Washington Post, 12/8). On "Fox News Sunday," Senate Minority Leader Trent Lott (R-Miss.) said that Republicans have offered concessions to Democrats on unemployment benefits and health insurance for unemployed workers, but said that Democrats have not compromised on tax provisions. Lawmakers will likely resume negotiations on an economic stimulus bill this week (Price, Washington Times, 12/10). The House in October approved a $100 billion GOP-sponsored bill, supported by President Bush, that would increase by $3 billion funding for the Social Services Block Grant program to allow states to provide health insurance to unemployed workers and their families (Kaiser Daily Health Policy Report, 10/29). Senate Democrats had proposed a different bill, which Senate Republicans blocked last month, that would have provided $14.3 billion to extend benefits for unemployed workers by 13 weeks and $12.3 billion to help unemployed workers purchase health coverage through COBRA. 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. The Senate Democrats' legislation would have allowed states to extend Medicaid coverage to unemployed workers who do not qualify for COBRA and provided $1.4 billion to boost the federal match to states for Medicaid (Kaiser Daily Health Policy Report, 11/15).

New York Times Editorial
A Dec. 9 New York Times editorial warns that the economic stimulus bill supported by Republicans would provide "tax break giveaways" to businesses and "is worse than no bill at all." The editorial adds that at a "minimum, the stimulus bill needs to help all Americans who need jobless and health benefits." In addition, the editorial urges Bush to "do more than exhort Congress to get moving" on economic stimulus legislation and "do the dirty work of negotiating with Congress" to pass a bill this year (New York Times, 12/9).