Senate Democrats offer new jobless benefit plan

Credit: Reuters/Jonathan Ernst

U.S. Senate Majority Leader Harry Reid (D-NV) speaks to reporters after the weekly Democratic caucus luncheon at the U.S. Capitol in Washington, January 7, 2014.

The potential deal, which was still under discussion, could be unveiled by Senate Majority Leader Harry Reid later on Thursday.

Part of the $18 billion cost would be achieved by extending automatic spending cuts, known as 'sequestration,' meaning that the savings would be achieved years from now. Other savings would be attained by tightening some requirements for people who collect both jobless benefits and disability payments, the aide said.

(Reporting By Richard Cowan; Editing by Chizu Nomiyama)