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Democrats at a loss on jobs agenda

WASHINGTON — Stymied by Republicans, Democrats are at a loss as they struggle to help pump up the economy in the run-up to congressional elections this fall.

The demise of their jobs-agenda legislation Thursday means that unemployment benefits will phase out for more than 200,000 people a week. Governors who had counted on fresh federal aid will now have to consider a more budget cuts, tax increases and layoffs of state workers.

Senate Democrats cut billions from the bill in an attempt to attract enough Republican votes to overcome a filibuster. But the 57-41 vote fell three votes short of the 60 required to crack a GOP filibuster, leaving the way forward unclear.

"Democrats have given Republicans every chance to say 'yes' to this bill and support economic recovery for our middle class," said Senate Majority Leader Harry Reid, D-Nev. "But they made a choice to say 'no' yet again."

President Barack Obama will keep pressing Congress to pass the bill, his spokesman said. But Democrats haven't shown they can come up with the votes.

The setback forced congressional Democrats to settle for a much smaller victory: Congress passed a bill temporarily sparing doctors from a 21 percent cut in Medicare payments, sending the measure to Obama for his signature.

The Medicare funding had been a part of the larger bill to provide extended unemployment benefits for laid-off workers and provide states with billions of dollars to avert layoffs. When it became clear Senate Republicans would block the larger bill, Democrats begrudgingly voted for the smaller Medicare fix.

"It is clear that Senate Republicans have no intention of passing any jobs legislation, whether it is tied to physician payments or not," said House Speaker Nancy Pelosi, D-Calif.

Congressional Democrats began the year with an aggressive agenda of passing a series of bills designed to create jobs. One has become law, offering tax breaks to companies that hire unemployed workers. Others stalled as lawmakers, after hearing from angry voters, became wary of adding to the national debt, which stands at $13 billion.

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