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Federal transportation layoffs could affect Cd'A bridge project

| March 1, 2010 11:00 PM

WASHINGTON (AP) - Jobless benefits suddenly ended for some laid-off workers, Medicare payments to doctors were delayed and 2,000 federal transportation workers were sent home Monday in a spending dispute tinged with election-year politics.

Democrats seized on the impasse to portray Republicans as obstructionists willing to block popular programs that create jobs and provide relief to the unemployed. Adding its voice to the flap, the White House said it was trying to "shame" Republican Sen. Jim Bunning of Kentucky for single-handedly blocking the $10 billion extension.

In fact, it appeared the spat would have little impact on ordinary Americans because lawmakers expect to resolve the dispute this week.

But in the meantime, 41 highway projects were to be shut down because federal inspectors were off the job.

"Because of the shutdown, federal inspectors will be removed from critical construction projects, forcing work to come to a halt on federal lands," according to the ITD Web site. "Projects span the country, including the $36 million replacement of the Humpback Bridge on the George Washington Parkway in Virginia, $15 million in bridge construction and stream rehabilitation in Coeur d'Alene and the $8 million resurfacing of the Natchez Trace Parkway in Mississippi."

The project referred to in Coeur d'Alene, according to ITD, is the $14.6 million Fernan Lake Road project, which has stopped for the winter and is expected to start up again in the spring to pave, widen and realign the windy road. The work is being done by M.A. DeAtley Construction Inc.

The Obama administration ordered Medicare billing contractors not to pay any claims from doctors for the first 10 business days of March. Most laid-off workers receiving unemployment benefits won't be affected - unless the impasse drags on - but those seeking payment extensions won't be able to obtain them."

Republicans have been largely silent on the impasse, with several defending Bunning's right as a senator to slow the legislation, but none offering full-throated support. Sen. Jon Kyl of Arizona, the No. 2 Republican in the Senate, said Bunning correctly argues that the bill ought to be paid for, but he predicted it would pass.

Bunning, who is not seeking re-election, has single-handedly held up a bill since Thursday that would extend the programs for 30 days. White House spokesman Robert Gibbs called out Bunning on Friday and Monday.

Bunning said he opposed the extension because it would add to the budget deficit, already projected to hit a record $1.56 trillion this year. Bunning proposed to pay for the extension with unspent money from last year's massive economic recovery package, but Democrats objected.

The bill would extend unemployment payments to laid-off workers and provide them with subsidies to help pay health premiums through the COBRA program. It would extend funding for highway projects and spare doctors from a 21 percent cut in Medicare payments. It would extend a small business loan program, the National Flood Insurance Program and the copyright license used by satellite television providers.

Furloughs will affect employees at the Federal Highway Administration, the Federal Motor Carrier Safety Administration, the National Highway Traffic Safety Administration and the Research and Innovative Technology Administration.

Transportation Secretary Ray LaHood said construction workers will be sent home from job sites because federal inspectors must be furloughed.

The Medicare cuts come from a 1990s deficit reduction measure that Congress has routinely waived over the years. Medicare payments to doctors would be cut by 21 percent, if Congress doesn't act.

Most people already receiving extended unemployment benefits won't be affected by the impasse. But in the unlikely event that the impasse lasts through March, about 1.1 million people would lose benefits.

Senators said more than 1 million rural television viewers would not be able to watch local stations on their satellite systems without an extension.