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WASHINGTON – In a swift victory for President Barack Obama, the Democratic-controlled House approved a historically huge $819 billion stimulus bill Wednesday night with spending increases and tax cuts at the heart of the young administration's plan to revive a badly ailing economy. The vote was 244-188, with Republicans unanimous in opposition despite Obama's frequent pleas for bipartisan support.

"This recovery plan will save or create more than three million new jobs over the next few years," the president said in a written statement released moments after the House voted. Still later, he welcomed congressional leaders of both parties to the White House for drinks as he continued to lobby for the legislation.

Earlier, Obama declared, "We don't have a moment to spare" as congressional allies hastened to do his bidding in the face of the worst economic crisis since the Great Depression.

The vote sent the bill to the Senate, where debate could begin as early as Monday on a companion measure already taking shape. Democratic leaders have pledged to have legislation ready for Obama's signature by mid-February.

A mere eight days after Inauguration Day, Speaker Nancy Pelosi said the events heralded a new era. "The ship of state is difficult to turn," said the California Democrat. "But that is what we must do. That is what President Obama called us to do in his inaugural address."

With unemployment at its highest level in a quarter-century, the banking industry wobbling despite the infusion of staggering sums of bailout money and states struggling with budget crises, Democrats said the legislation was desperately needed.

"Another week that we delay is another 100,000 or more people unemployed. I don't think we want that on our consciences," said Rep. David Obey, D-Wis., chairman of the House Appropriations Committee and one of the leading architects of the legislation.

Republicans said the bill was short on tax cuts and contained too much spending, much of it wasteful, and would fall far short of administration's predictions of job creation.

The party's leader, Rep. John Boehner of Ohio, said the measure "won't create many jobs, but it will create plenty of programs and projects through slow-moving government spending." A GOP alternative, comprised almost entirely of tax cuts, was defeated, 266-170.

On the final vote, the legislation drew the support of all but 11 Democrats, while all Republicans opposed it.

The White House-backed legislation includes an estimated $544 billion in federal spending and $275 billion in tax cuts for individuals and businesses. The totals remained in flux nearly until the final vote, due to official re-estimates and a last-minute addition of $3 billion for mass transit.

Included is money for traditional job-creating programs such as highway construction and mass transit projects. But the measure tickets far more for unemployment benefits, health care and food stamp increases designed to aid victims of the worst economic downturn since the Great Depression of the 1930s.

Tens of billions of additional dollars would go to the states, which confront the prospect of deep budget cuts of their own. That money marks an attempt to ease the recession's impact on schools and law enforcement. With funding for housing weatherization and other provisions, the bill also makes a down payment on Obama's campaign promise of creating jobs that can reduce the nation's dependence on foreign oil.

The centerpiece tax cut calls for a $500 break for single workers and $1,000 for couples, including those who don't earn enough to owe federal income taxes.

The House vote marked merely the first of several major milestones a for the legislation, which Democratic leaders have pledged to deliver to the White House for Obama's signature by mid-February.

Already a more bipartisan — and costlier — measure is taking shape in the Senate, and Obama personally pledged to House and Senate Republicans in closed-door meetings on Tuesday that he is ready to accept modifications as the legislation advances.

Rahm Emanuel, a former Illinois congressman who is Obama's chief of staff, invited nearly a dozen House Republicans to the White House late Tuesday for what one participant said was a soft sales job.

This lawmaker quoted Emanuel as telling the group that polling shows roughly 80 percent support for the legislation, and that Republicans oppose it at their political peril. The lawmaker spoke on condition of anonymity, saying there was no agreement to speak publicly about the session.

In fact, though, many Republicans in the House are virtually immune from Democratic challenges because of the makeup of their districts, and have more to fear from GOP primary challenges in 2010. As a result, they have relatively little political incentive to break with conservative orthodoxy and support hundreds of billions in new federal spending.

Also, some Republican lawmakers have said in recent days they know they will have a second chance to support a bill when the final House-Senate compromise emerges in a few weeks.

Rep. Randy Neugebauer, R-Texas, sought to strip out all the spending from the legislation before final passage, arguing that the entire cost of the bill would merely add to soaring federal deficits. "Where are we going to get the money," he asked, but his attempt failed overwhelmingly, 302-134.

Obey had a ready retort. "They don't look like Herbert Hoover, I guess, but there are an awful lot of people in this chamber who think like Herbert Hoover," he said, referring to the president whose term is forever linked in history with the Great Depression.

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Associated Press writers Andrew Taylor, Liz Sidoti and Ben Feller contributed to this story.

 

View this articleon news.yahoo.com

WASHINGTON — President Barack Obama and his top advisers sought over the weekend to broaden the appeal of his proposed $825 billion economic-stimulus package and to defend the way they are pushing it through Congress. But some senior Republicans said Sunday that as the stimulus plan stands, they would oppose it.

The new administration has begun a campaign to build momentum behind the economic-stimulus plan and propel it to passage by mid-February. The White House released a report Saturday revealing details about the package, which would pay for a variety of projects, like laying 3,000 miles of transmission lines for a national electric grid, securing 90 major ports and guaranteeing health insurance for 8.5 million Americans in danger of losing coverage.

As the administration pressed for quick action, Vice President Joseph R. Biden Jr. offered a bleak assessment of the current situation but predicted that the stimulus package would ultimately pass Congress with support from both parties. Speaking to Bob Schieffer on CBS’s “Face the Nation,” Mr. Biden said of the economy, “It’s worse, quite frankly, Bob, then everyone thought it was, and it’s getting worse every day.”

“There’s no good news, and there’s no good news on the horizon.”

But he said that rapid Congressional action could begin to change that. “I think you’ll see a fairly strong vote across the board” for the package in Congress, he said.

Republicans have complained that the Obama administration has largely sidelined them, though the president met with some Republican lawmakers on Friday.

But on Sunday, Senator John McCain of Arizona said that he would oppose the package as it now stands.

“The plan was written by the Democratic majority in the House, primarily, and so, yeah, I think there has to be major rewrite,” Mr. McCain said on “Fox News Sunday.” Asked if that meant he would oppose it, he replied: “I am opposed to most of the provisions in the bill; as it stands now, I would not support it.”

Still, Mr. McCain, the recent Republican presidential candidate, said that he wanted to work with Mr. Obama and still believed that a compromise package could pass in February.

While saying that “clearly we need to have serious negotiations,” he added, “I think we can sit down in three weeks and work hard and negotiate and come to some agreement, hopefully.”

Representative John Boehner of Ohio, the minority leader, was also critical of the package, which he said relied too much on government spending — and on spending that would produce results far too slowly, some for projects deemed dubious. As it stands, he said, “We don’t believe it’s going to work,” adding that “a lot of Republicans will vote no.” But Mr. Boehner held open a door to compromise, saying, “At the end of the day, we want him to succeed, because America needs him to succeed.”

Mr. Obama himself presented the argument for his plan on Saturday, in his first weekly video address as president, saying it would help students go to college, protect workers from losing health care, lower energy bills and modernize schools, roads and utilities.

“This is not just a short-term program to boost employment,” Mr. Obama said. “It’s one that will invest in our most important priorities like energy and education, health care and a new infrastructure that are necessary to keep us strong and competitive in the 21st century.”

The administration’s plan to press the lobbying effort included the appearance Sunday by Vice President Biden on CBS and by Mr. Obama’s chief economic adviser, Lawrence H. Summers, on NBC.

Mr. Obama, who played host to Congressional leaders from both parties on Friday and met with his economic team on Saturday, will visit Capitol Hill in the coming week to talk with Republican lawmakers on their home turf. But House Republicans are stiffening their resistance to the magnitude of spending in the plan developed by House Democrats on Mr. Obama’s behalf to create or save more than three million jobs.

About two-thirds of the $825 billion is reserved for spending and the rest for tax breaks. In the Republican response to the president’s address Mr. Boehner called for deeper tax cuts instead. He is pushing a Republican plan to lower federal income tax rates in the two lowest brackets rather than provide a $500 per worker tax credit, as Mr. Obama wants to do. The Republican plan would also give tax breaks to small businesses, home buyers and the unemployed.

Source: http://www.nytimes.com/2009/01/26/us/politics/26stimulus.html?ref=politics