People being handed pink slips may get an early holiday gift this year: more unemployment checks.

Congress raced to approve legislation Thursday to keep unemployment checks flowing through the December holidays and into the new year for one million or more laid-off Americans, AP reports. It’s anticipated that 1.2 million people would run out of unemployment insurance by the end of the year without an extension.

The move comes on top of more bad economic news: The Dow Jones industrials dropped more than 400 points for a second straight day, while the Standard & Poor’s 500 index fell below lows established six years ago. Meanwhile, laid-off workers’ request for jobless aid reached a 16-year high and the number of Americans searching for work surpassed 10 million.

The White House said President George W. Bush would quickly sign the latest $5.7 billion version of the benefits extension. The House approved the bill in October.

"Putting money in the hands of unemployed families means they will be able to pay their rent and utility bills, buy groceries and clothe their children," Sen. Dick Durbin, D-IL, said after the voice vote in the Senate. "It is money that will create economic growth in America."

Meanwhile, lawmakers failed to reach an agreement Thursday on a proposal to provide $25 billion in emergency aid to the auto industry. Congress told the Big Three auto execs to submit a plan to Congress by December 2 on how they would use the federal money. If the plan is acceptable, Congress could return days later to work on a bailout package.

"Until they show us a plan," said House Speaker Nancy Pelosi, D-CA, "we cannot show them the money."

In a bit of good news, Reuters reports that Fannie Mae and Freddie Mac will suspend home foreclosures of occupied homes until early January 9, 2009.

Fannie Mae and Freddie Mac said the hiatus on foreclosures will give mortgage services more room to work out easier borrowing terms for troubled homeowners.

Last week, federal regulators unveiled a plan that could cut payments for hundreds of thousands of borrowers by easing terms on their loans.