Conservative Dems balk at cost of jobless-aid-extension package

Associated Press

WASHINGTON

The Senate easily passed an almost $60 billion war-funding bill Thursday, but anxiety over out-of-control budget deficits led House leaders to drop tens of billions of dollars in spending from a separate catchall bill anchored by an extension of jobless benefits.

Confronted with a rebellion by Democratic moderates, House leaders planned to dump overboard $24 billion in aid to states and allow generous health-insurance subsidies for laid-off workers to expire.

The changes were an effort to round up votes to extend unemployment benefits and renew more than 50 popular tax breaks that expired last year.

Help for doctors facing a big cut in Medicare reimbursements also would be dropped from the measure, aides and lobbyists said, and is unlikely to be resurrected by a vote today.

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