Democrats reach deal on unemployment aid

Senate Democrats reached an agreement Friday night on how to structure unemployment aid in their $1.9 trillion coronavirus relief bill, allowing the plan to move forward after hours of delays.

The deal set in motion an all-night vote on amendments to the rescue package, which dragged into Saturday morning ahead of a potential final vote on the legislation.

Democratic Sen. Joe Manchin of West Virginia backed his party’s jobless benefit proposal, after his reluctance to support a previous iteration of the plan held up Democrats’ push to approve the measure this weekend. The disagreement over unemployment insurance threw the Senate into chaos as Democrats and Republicans urged the conservative Democrat to back their unemployment proposals.

The deal will extend a jobless benefit supplement at the current $300 per week through Sept. 6, according to NBC News. It will make the first $10,200 in unemployment aid non-taxable to prevent surprise bills. The provision will apply to households with incomes under $150,000.

“We have reached a compromise that enables the economy to rebound quickly while also protecting those receiving unemployment benefits from being hit with [an] unexpected tax bill next year,” Manchin said in a statement Friday.

Democrats approved the unemployment change in a party line…