Senate works to restore jobless, highway aid

WASHINGTON (Reuters) - Congressional Republicans, nervous over the fallout from an impasse over jobs legislation, said on Tuesday they were nearing a deal to end a standoff that has disrupted highway construction projects and unemployment benefits for hundreds of thousands of Americans.

As Senator Jim Bunning continued his one-man roadblock for a fifth legislative day, fellow Republicans said they were working to end a stalemate that could risk a backlash from recession-weary voters.

"We're going to be able to work out the short-term extension in the very near future and we're in the process of working on that now," Senate Republican leader Mitch McConnell said.

Jobless benefits, highway construction and a handful of other government programs expired on Sunday night after Bunning used a procedural roadblock to prevent the Senate from renewing them quickly.

Bunning insisted that Congress should use funds already authorized for other purposes to cover the $10 billion tab.

Other Republicans said they agreed with Bunning in principle but did not necessarily endorse his methods.

"This doesn't represent the position of the caucus," said Senator John Cornyn, a member of the Republican leadership.

The standoff gave Democrats an opportunity to shift the focus from their own struggles to advance legislation that aims to reduce the 9.7 percent unemployment rate.

In floor speeches and news conferences, Democrats painted Bunning's stand as the latest in a series of Republican tactics that prevent Congress from working effectively.

"Today we have a clear-cut example to show the American people what's wrong with Washington," said Democratic Senator Patty Murray.

A Hall of Fame baseball pitcher with a prickly reputation, Bunning plans to retire this year after fellow Kentuckian McConnell discouraged him from running for re-election.

Few Republicans have come to the Senate floor to defend Bunning as he endured hours of Democratic criticism for letting the programs expire.

JOBLESS BENEFITS, HIGHWAY CONSTRUCTION AFFECTED

Some 400,000 jobless Americans could exhaust their unemployment benefits over the next two weeks, the Labor Department said. By the end of March, 500,000 workers could lose the COBRA subsidies that help them pay for health insurance.

Highway construction, a key component of Democrats' job-creating efforts, has also been disrupted. Nearly 2,000 federal transportation workers were furloughed without pay on Monday, affecting more than 40 construction projects, and states will lose $950 million each week in federal reimbursements, authorities said.

Other affected programs, from satellite TV broadcast rights to doctors' pay, were being extended on an informal basis. But the dispute will lead to administrative headaches even after it is resolved, officials said.

Democrats had hoped to extend those programs for a few weeks as they worked on other job-creation measures.

With that option closed to them, they planned to vote later in the week on a $150 billion measure that would extend unemployment benefits through the end of the year and help states pay spiraling health insurance costs.

(Additional reporting by Lisa Lambert and John Poirier; Editing by David Alexander and Peter Cooney)