On October 11, the American Jobs Act fell short of the 60 votes necessary to invoke cloture and begin debate, by a 50-48 margin. Senate leaders are now expected to break the bill into smaller pieces to emphasize different aspects of the plan including investments in infrastructure and tax changes to promote job creation. Specifically, Senator Chuck Schumer (D-NY) has been researching whether there is enough support to combine a repatriation tax holiday and a national infrastructure bank. Senate Democrats are weighing whether to push ahead with other individual pieces like an extension of the payroll tax cut. President Obama is also expected to begin pressing for individual pieces as well as he continues speaking about the need to provide additional economic stimulus. The first piece he is expected to highlight is the need to provide $35 billion to states in order to preserve teacher and first responder jobs.

Also last week, Senate Republicans released a five-prong jobs package outline that focuses on spending, taxes, regulations, energy production and export promotion. The outline incorporates many separate Senate bills already introduced into a comprehensive package. Of interest to states, the package includes a repeal of the 3 percent withholding requirement from vendors who supply states and local governments, which has not yet taken effect. It would also amend the Unfunded Mandate Reform Act to broaden its coverage to include rules issued by independent federal agencies. Other highlights from the proposed package include a balanced budget amendment, providing the President with line-item veto authority, reforming the federal tax code, placing a moratorium on new federal regulations until unemployment drops to 7.7 percent, promoting domestic energy production and exploration and renewing presidential fast-tract authority to negotiate trade agreements.

In addition to the jobs plan released by the President and Senate Republicans, both House and Republicans and House Democrats have released their own “jobs” plan.

Link: Senate Republicans Jobs Plan, The American Jobs Act, House Republicans Jobs Plan, House Democrats Jobs Plan