Senate poised to adopt jobless, housing aid

By Andy Sullivan

WASHINGTON (Reuters) - The U.S. Senate was poised on Wednesday to extend aid for jobless workers and broaden tax breaks for homebuyers and businesses in a bill aimed at breathing life into the U.S. economy.

After weeks of partisan bickering, the Senate voted 97 to 1 to clear a procedural hurdle and move to final passage on Wednesday or Thursday. The House of Representatives is expected to approve it quickly and send it to President Barack Obama to sign into law.

Democrats who control Congress are under pressure to get the economy moving before the November 2010 congressional elections. But they have been reluctant to assemble another massive stimulus package after February's $787 billion measure, fearing a voter backlash over record budget deficits.

Instead, they have opted for a smaller, budget-neutral package that broadens several existing measures.

The bill would give an additional 14 weeks of unemployment benefits to jobless workers. Those in high-unemployment states would get six weeks on top of that.

Unemployment insurance payments, which average $308 per week, usually expire after six months but Congress has already extended them twice in a recession that has been marked by a high number of long-term unemployed.

Economists say the payments stimulate the economy because they are spent quickly and help the jobless avert foreclosure and bankruptcy.

Unemployment stands at 9.8 percent, the highest since 1983, and analysts expect it to climb to 9.9 percent when new figures for October are released on Friday.