CQ TODAY ONLINE NEWS
– ECONOMIC AFFAIRS
Updated Feb. 12, 2009 – 6:14 p.m.
Vote Expected in Senate Friday Night; Conferees Work to File Stimulus Report
By Joseph J. Schatz and Paul M. Krawzak, CQ Staff
House and Senate appropriators began releasing the details of the wide-ranging $789 billion economic stimulus conference report Thursday afternoon as the House and Senate prepared for a Friday vote.
Senate Majority Whip Richard J. Durbin , D-Ill., said that the Senate “probably” would consider the package (
It appeared moving forward depends in part on when the conference report was filed, and in part on when Senate Majority Leader Harry Reid , D-Nev., could be certain he could round up at least 60 votes for the package — the number needed to surmount any filibuster.
House and Senate Democrats struck a deal on the final package that won support from the three Senate Republicans who are expected to vote for the bill, putting Democrats over the 60-vote threshold.
Those three are Maine Sens. Olympia J. Snowe and Susan Collins , and Pennsylvania Sen. Arlen Specter .
Negotiatons over the tax section of the package held up completion of the conference report, with concerns focusing in particular on details of a provision allowing companies to use losses suffered in the current downturn to offset gains of prior years, claiming immediate tax refunds.
Senate Democratic leaders, who hold a 58-41 operational edge over Republicans, with one seat vacant, are playing a numbers game as they plan a vote. Sherrod Brown , D-Ohio, will be in Ohio Friday for viewing hours for his mother, who died earlier this month, and Saturday for her funeral. He said he would try to get back for a vote on the stimulus if he can juggle that with his family obligations.
Sen. Edward M. Kennedy , D-Mass., is currently in Florida, although he voted earlier this week when the Senate took up its version of the stimulus.
Sen. Joseph I. Lieberman , I-Conn., is a devout Jew who will not be available to vote between sundown Friday and sundown Saturday.
The wide-ranging measure – called by many the most dramatic fiscal intervention by the federal government since World War II – includes hundreds of billions of dollars in both spending and tax breaks, ranging from $87 billion Medicaid funding assistance for states to tax incentives for small businesses.
The final figure “was not a scientific number, but a political one,” House Majority Leader Steny H. Hoyer , D-Md., said Thursday at a National Press Club forum. “Three Republicans set that as the limit of what they would vote for.”
“We hope the package will have the effect most economists believe it will have.” Hoyer said. But he added, “Several economists have said that this may not be enough. And they might be right, but this is what we could get.”
The final measure would increase the ceiling on the national debt by $789 billion, to $12.104 billion.
Republicans in both chambers continued to rail against the bill, asserting that it would drive up the budget deficit without doing enough to stimulate the economy.
House Minority Leader John A. Boehner , R-Ohio, wouldn’t speculate about how many GOP members would vote for the final stimulus version. Not a single House Republican voted for the initial version.
“I suspect many of our members will continue to stand on principle,” he said. “This bill will not work.”
The final measure would increase the ceiling on the national debt by $789 billion, to $12.104 billion.
Key Provisions
Conference negotiators restored some of the funding the Senate cut from its bill to gain the support of Collins, Snowe and Specter. The Senate-passed measure included $289.8 billion in discretionary funding, which is under jurisdiction of the Appropriations committees, while the House-passed measure included $361 billion.
The conference agreement would provide $311 billion in discretionary funding, including:
• $120 billion for infrastructure and science, of which $27.5 billion is for highways, $9.3 billion for rail transportation, $8.4 billion for public transportation, $7.2 billion to improve broadband access, $6 bllion for environmental cleanup at former weapons production sites and $6 billion for local clean water infrastructure.
• $14.2 billion for health investments, including $10 billion for National Institutes of Health biomedical research and facilities improvements. The NIH funding was a priority for Specter.
• $105.9 billion for education and training, including $53.6 billion for a state fiscal stabilization fund; $13 billion for Title I programs helping disadvantaged students, $12.2
• $37.5 billion for energy, including $11 billion formore than $30 billion in infrastructure.
• $24.7 billion to subsidize COBRA health insurance premiums — at a level of 65 percent, for nine months — for workers who have lost their jobs.
• $7.8 billion for law enforcement and oversight programs.
The final bill would continue through December the extended unemployment benefits program, which was scheduled to phase out at the end of March. The program provides up to 33 weeks of extended benefits to workers who exhaust their regular 26 weeks of benefits. It will help an estimated 3.5 million jobless workers.
The plan also would increase unemployment benefits for 20 million jobless workers by $25 per week., and would allocate an additional $19.9 billion for food stamps, only slightly less than the the $20.717 billion in the House bill. The Senate substitute had $8.231 billion for food stamps.
The deal provides a one-time payment of $250 to recipients of Social Security, Supplemental Security Income and veterans receiving disability compensation and pension benefits.
The final version bolsters support for several housing programs, providing $2 billion for a Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties. That’s up from nothing in the Senate bill but only about half the $4.19 billion in the House bill.
The plan would extend trade adjustment assistance benefits for at least 160,000 new workers over the next two years, a provision that was in the Senate but not House bill.
Give and Take
To reduce the cost of the measure – the House version totalled $819 billion and the Senate version cost $838 billion – and make it more palatable to Senate moderates, negotiators scaled back several popular tax break proposals.
Obama’s signature “Making Work Pay” tax credit to offset payroll taxes was trimmed from $500 per person and $1,000 per married couple to $400 and $800, respectively.
Negotiators slightly increased, to $8,000, an existing $7,500 tax credit for first-time homebuyers, extended it through Dec. 31 and dropped a repayment requirement. They also agreed to allow a new tax deduction for state and local sales taxes on new car purchases. But both provisions are less generous than the Senate’s bill, which would have offered a $15,000 tax credit to all homebuyers and allowed deduction of interest payments on car loans, in additional to sales taxes.
As part of the compromise the final agreement includes $53.6 billion for a state stabilization fund, much of which is expected to go to education programs. The House bill would have provided $79 billion for the fund while the Senate bill included $39 billion.
The House measure, however, also included a separate pot of $14 billion for school construction programs. The Senate GOP moderates balked at this sum, arguing the federal government should not be funding school construction.
As part of the compromise, $8.8 billion of the $53.6 billion can go toward “modernization, renovation and repairs of public school facilities,” according to a release from the House and Senate Appropriations committees.
House negotiators were able to keep $1 billion for Community Development Block Grants in the final bill. The Senate measure had no funding for this program.
Democrats have been trumpeting the amount of funding in the bill for energy projects and research. For instance the final agreement include $11 billion for “modernizing” the electrical grid, $4.5 billion to make federal buildings more energy efficient and $5 billion for making low-income housing more energy efficient.
Asked about differences between House and Senate over school construction in the stimulus, House Speaker Nancy Pelosi , D-Calif., said school construction “was one of our top priorities on the House side in terms of investments that will be made. It creates jobs immediately and improves education of our children.”
She said House Democrats were “very happy” with the final version. But Pelosi added that “until we could see the language of that agreement” she could not give final signoff.
— Bennett Roth, Bart Jansen, Catharine Richert and Ed Edward Epstein contributed to this story.
First posted Feb. 12, 2009 12:36 p.m.




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