The White House Bulletin

March 1, 2002

SECTION: IN THE WHITE HOUSE AND AROUND TOWN

House GOP Leaders Considering Health Care, Unemployment Package.

After conferring yesterday on a strategy to deal with a number of pressing issues - economic stimulus, unemployment insurance (UI), debt limit - House GOP leaders are said to be considering a package that would combine health care tax credits and "extended and enhanced" UI benefits. UI benefits would be extended for 13 weeks, include Reed Act provisions that would provide flexibility to states, and also perhaps contain a "trigger" that would automatically release federal UI benefits for any state that hits a predetermined "high" unemployment level.

Debt Limit And Unemployment Insurance Reaching Decision Points, But GOP Leaders See No Linkage.

Meanwhile, House GOP leaders quietly acknowledge that they lack the votes to pass a standalone increase in the federal debt limit. They are looking for sweeteners to move a debt limit bill at the same time they consider an option to redefine "national debt" that might allow them to avoid raising the ceiling altogether. Redefinition of national debt is considered a long shot, though, and the calendar will put strong pressure on House GOP leaders to act quickly on two issues - debt limit increase and unemployment insurance.

House GOP leaders are "fixated" on the week of March 11, according to one GOP source, because that is the 26th week after the week of September 11. For people who lost their jobs shortly after the attacks on America, their unemployment benefits are about to run out. Meanwhile, the Treasury is repeatedly telling Congress that the debt limit will be reached this month, and legislation is needed immediately to forestall financial shortfalls. The coincidence of these two needs has many thinking it will cause House GOP leaders to combine the two as one bill, which might draw debt limit over the finish line.

Asked if GOP leaders are going to combine a debt limit increase and an extension of unemployment benefits, a House GOP source said, "No." GOP leaders are still leaning toward a strategy, according to the source, of combining the debt limit with a "war supplemental," and processing a second supplemental for non-war related needs down the road. They are hopeful that will suppress the desire to load up the war supplemental with pet projects.