The US Senate is heading toward passing an $827 billion economic stimulus measure sought by President Barack Obama. "We can no longer posture and bicker and resort to the same failed ideas that got us into this mess in the first place," the president said today in Elkhart, Indiana, an area hard-hit by manufacturing job losses.
Mr Obama will hold a televised White House news conference later to further rally public support. US stock markets lost a little ground ahead of the stimulus votes and an announcement for a new rescue plan to help banks also due Tuesday.
As the world watched to see how the new president and Congress respond to the worst US recession in 70 years - and after slicing some $110 billion out of the package - the Senate is set to clear a procedural hurdle in a vote.
The Senate measure includes $139 billion in individual income tax breaks, $43 billion for more unemployment benefits and almost $47 billion to encourage Americans to buy new cars and homes. It also includes tens of billions of dollars to rebuild roads and help states plug growing budget gaps.
If the Senate approves its version tomorrow as expected, it will have to be reconciled with an $819 billion package the House of Representatives passed last month, a process expected to take several days.
Mr Obama wants a final package on his desk this weekend.
"We're going to do our utmost to do this as quickly as possible," Senate Democratic Majority Leader Harry Reid, said on the Senate floor before the vote to wrap up the chamber's debate. "We have to complete this work this week."
The Senate compromise cut some $40 billion from the $79 billion to help states, $16 billion for school construction and $5.8 billion for preventative health initiatives, prompting calls from Obama and Democrats to restore some of it.
"I'll be honest with you, the Senate version cut a lot of these education dollars. I would like to see some of them restored," Mr Obama said in Indiana as he embarked on a weeklong campaign to build support for the stimulus package.
While Democrats are expected to seek to restore some of that money when lawmakers reconcile the House and Senate bills this week, many Republicans decried the compromise and said even more money should be excised from the legislation.
Reuters