US Senate passes Obama stimulus plan

11 Feb 2009, 7:36 am   -   Source: AAP, AFP
Share This
Obama has described the development as 'good news', having previously expressed his frustration with delays (Getty)

Obama has described the development as 'good news', having previously expressed his frustration with delays (Getty)

The US Senate has passed a $US838 billion economic stimulus plan, touching off difficult compromise negotiations with the lower house.

RELATED

The US Senate passed an $US838 billion ($A1.23 trillion) economic stimulus plan on Tuesday, touching off difficult compromise negotiations with the lower house to send President Barack Obama a final bill this week.

"That is good, that is good news," Obama cheered during a town-hall stop in an economically hard-hit area of Florida, part of a public-relations campaign to pressure lawmakers to approve the stimulus plan.

Senators voted 61-37 to approve the package, setting the stage for talks aimed at reconciling differences between their legislation and the House of Representatives' rival $US819 billion ($A1.2 trillion) plan.

"We've still got to get the House bill and the Senate bill to match up before it gets sent to my desk, so we've got a little more work to do over the next couple of days, but it's a good start," said the president.

Once the effort yields a compromise plan, it would go to each chamber for final approval.

Leaders of the Democratic majorities in both chambers have said they will work as long as it takes to get a final package to Obama, who has urged lawmakers to meet a self-imposed February 16 deadline for doing so.

Alternative package increases support

The Senate vote came after a small group of swing-vote senators crafted a smaller alternative to what had ballooned to a $US940 billion ($A1.38 trillion) package, securing support from three moderate Republicans: Maine Senators Susan Collins and Olympia Snowe, and Pennsylvania Senator Arlen Specter.

Their critical support - Democrats can count on 58 votes and need them to reach the 60 votes needed to thwart parliamentary delaying tactics - may be an obstacle to making major changes to the Senate version of the legislation.

House Democratic Majority Leader Steny Hoyer told reporters that he hoped to make changes to the Senate version, but acknowledged concerns in Congress and the Obama White House about vital Senate support "jumping ship".

Compromise talks to continue

Hoyer also said that the House would keep at the compromise talks until there was agreement and left open the possibility of work stretching well into what is scheduled to be a week-long break starting at close of business Friday.

He also signalled his hope that the House-Senate "conference" further dilutes a "Buy American" clause that has angered major US trading partners like Canada and the European Union.

"My personal view is they took a step in the right direction in the Senate, and I think it'll continue to be an item of discussion," he said.

Senators voted last week to soften a clause that barred stimulus spending on a project unless all of the iron, steel and manufactured goods involved were made in the United States, adding language that the provision must be applied in keeping with US treaty obligations.

Asked whether he thought the final bill could swell past $US838 billion, Hoyer replied: "No, I don't."

Republicans, who overwhelmingly oppose the plan, charge it is bloated with wasteful government spending and say they would have liked to see significantly more tax cuts.

"The American people were ready to support an economic plan that would work and that wouldn't spend money we don't have on things we don't need. So were Republicans in Congress," said Senate Minority Leader Mitch McConnell.

The Senate version sliced popular funding, including about $US14 billion ($A20.57 billion) dollars for school construction and $US40 billion ($A58.76 billion) in direct aid to US states, many of which are facing painful cuts to meet legal bans on running budget deficits.

Obama has said he would like to see some of the education funding return to the bill, which blends tax cuts and government spending to battle the worst downturn since the Great Depression of the 1930s.

  • Follow us: 
  • Follow us on Facebook
  • Follow us on Twitter
  • Follow us on Youtube