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Senate works to extend jobless benefits

WASHINGTON, Feb. 26 (UPI) -- A proposal that would extend unemployment benefits and expiring tax provisions for a year is being developed in the U.S. Senate, a leadership aide said.

Senate Democrats said they would seek the extension of unemployment insurance benefits on Monday, tackling the next item on their jobs agenda, The Hill reported Friday.

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A Senate Democratic leadership aide said Majority Leader Harry Reid, D-Nev., was working on the proposal that likely would include an extension of COBRA subsidies.

The Hill said Senate Democrats tried and failed to gain Republican consent for a House-approved bill that included extending:

-- Unemployment benefits through April 5.

-- Government subsidies for COBRA health insurance premiums.

-- The national flood insurance program through March 28.

-- The Small Business Loan Guarantee Program that would include a $60 million appropriation.

The House bill also included a monthlong freeze on scheduled cuts to doctors' Medicare reimbursements, and monthlong extensions of Surface Transportation Authorization funding and the copyright license used by satellite television providers, the Washington publication said.

Democrats tried to pass the one-month extension of unemployment benefits Thursday, but were blocked by a filibuster from Sen. Jim Bunning, R-Ky. Bunning said he blocked the legislation to protest Reid's decision to turf a bipartisan jobs package negotiated by Senate Finance Committee Chairman Max Baucus, D-Mont., and the committee's ranking Republican, Sen. Chuck Grassley of Iowa.

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"We have the ability right now to extend (unemployment benefits) for just a short time until we work out a longer-term solution," Reid said. "It is irresponsible not to. It is immoral."

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