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Senate Democrats Cut Back Planned Unemployment Benefits Extension

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Unemployment benefits extentended until September

Senate Democrats are walking some planned changes to federal unemployment benefits after objections from Sen. Joe Manchin, D-W.Va., threatened to derail President Biden's $1.9 trillion coronavirus aid package.

The new plan is to extend the current $300 weekly federal unemployment payments through September 6, rather than the end of September as Senate Democrats had planned. The first $10,200 in unemployment benefits received in 2020 by households earning $150,000 or less would also be nontaxable.

Democrats thought they had unanimous agreement within the party to provide an additional month of benefits and to extend the tax-free status to all people who claimed unemployment last year. But Manchin's objections cropped up at the last minute before a planned Friday afternoon vote, forcing negotiations that dragged into the night.


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