WORLD> America
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WORLD> America
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Officials say tentative stimulus deal reached
(Agencies)
Updated: 2009-02-07 09:11 One Republican-proposed document outlined proposed cuts of more than US$85 billion. Most of that, US$60 billion, would come from money Democrats want to send to the states to avoid budget cuts for schools as well as law enforcement and other programs.
Talk of cuts in proposed education funds triggered a counterattack from advocates of school spending as well as unhappiness among Democrats.
At its core, the legislation is designed to ease the worst economic recession in generations, and combines hundreds of billions of dollars in new spending with tax cuts. Much of the money would go for victims of the recession in the form of food stamps, unemployment compensation and health care. There are funds, as well, for construction of highways and bridges. But the administration also decided to use the bill to make a down payment on key domestic initiatives, including creation of a new health technology industry and so-called green jobs designed to make the country less dependent on imported oil. And Democrats in Congress decided to add additional huge sums for the states struggling with the recession, as well as billions more for favored programs such as parks, the repair of monuments in federal cemeteries, health and science research and more. With Obama enjoying post-inauguration support in the polls and the economy shrinking, Democratic leaders in Congress have confidently predicted they would have a bill to the president's desk by mid-February. But Republicans, freed of the need to defend former President George W. Bush's policies, have pivoted quickly to criticize the bill for its size and what they consider wasteful spending. The entire Republican rank and file voted against the measure in the House, effectively prodding senators to take up the same cause. In the intervening days, Republicans have appeared to catch the administration and its allies off-guard, holding up relatively small items for ridicule and routinely seizing on comments from Democrats critical of the House-passed bill. At the same time, they have stressed a desire to help the economy but have said they prefer tax cuts and spending that would have a more immediate impact on job creation. Democrats hold a 58-41 majority in the Senate, but 60 votes are needed for passage of the bill because it would raise the federal deficit. Privately, Democrats in Congress have been critical of Obama and his aides for failing to counter the Republicans more effectively. In recent days, the president has sharpened his rhetoric against unnamed critics of the bill whom he accused of trying to re-establish the "failed policies" of the past eight years. As Reid struggled to nail down the necessary votes, the White House announced Obama would travel to Florida and Indiana next week to campaign for a stimulus measure. Both states have Republican senators. The president also is scheduled to hold a prime-time news conference on Monday where questions about the economy are likely to dominate. Despite the struggle, some Republicans seemed to sense the White House would ultimately prevail, and sought political mileage. Obama "could have had a very, very impressive victory early on," said Sen. John Cornyn of Texas, who heads the Senate Republican campaign committee. "But this is not turning out to be an impressive victory. it is turning out to be a little bit of a black eye."
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