House Passes Economic Stimulus Bill But...

Victory Largely Symbolic As Senate Kills Companion Measure

(AP)  The House on Friday passed a plan by Democrats to pump $61 billion in government spending into the economy through public works projects, help for the jobless and money for states struggling with their Medicaid bills.

The 264-158 tally was largely symbolic since it came just hours after Senate Republicans blocked a companion measure. The White House promised a veto in any event, saying the legislation would not work and would cost too much.

The bills follow a bipartisan plan enacted this winter that shipped $600-$1,200 tax rebate checks to most individuals and couples and awarded tax breaks to businesses investing in new plants and equipment.

With the economy still sagging, Democrats have long pressed for a follow-up plan that focused on more spending to extend unemployment benefits, boost food stamp payments and build infrastructure projects like roads, bridges, water and sewer projects and school repairs.

They got no interest from President Bush and his GOP allies in Congress.

"Record spending that could lead to record tax increases or higher deficits will not advance our economic recovery," the White House said in a statement.

Democratic leaders haven't seemed to take the idea very seriously, either, unveiling the measures only in the waning days of the congressional session despite talking about them for months. And in the Senate, Democrats added a provision to extend a moratorium on the development of oil shale, giving Republicans an additional reason to oppose the bill.

"The truth is that Senate leaders carefully stacked this package so that it would fail," said Sen. Thad Cochran, R-Miss.

Republicans charged that Democrats were more interested in using the votes against them in the fall campaign.

But Democrats said it's entirely appropriate for the bills to make a statement about party principles.

"Our stimulus package represents the right kind of economic policy - literally building a stronger country, investing in our children, investing in workers, and coming to the aid of struggling families," said Rep. George Miller, D-Calif.

The House plan was more focused on spending that would have an immediate impact on job creation. The Senate measure contains a wish-list of items long-sought by members of the Appropriations Committee, including money to provide U.S. Capitol police with new radios, accelerate NASA's development of a new space vehicle and move the Department of Homeland Security to a new headquarters.

Democrats contend that with the administration insisting on a $700 billion bailout for Wall Street holders of toxic mortgage securities, Bush should join them in providing federal help to the middle class and the poor. They cited studies by economists that say providing money - through food stamps and unemployment insurance - to people likely to spend it immediately has a proven record of boosting the economy.

"It injects money into infrastructure projects to create jobs directly and generate new economic activities," said Sen. Tom Harkin, D-Iowa. "We get the biggest buck stimulus-wise ... by expanding food stamp benefits. That's the best. The second best, extending unemployment benefits."

Other items in the legislation include:

Funding for development of advanced batteries for fuel efficient cars.

Money to upgrade Amtrak rail lines.

Extending unemployment benefits for the long-term jobless by seven weeks in all states and 13 weeks in states with higher unemployment rates at a cost of $6 billion.

Temporarily increasing federal payments to states to finance the Medicaid health care program for the poor and disabled. The Senate bill would provide $19.6 billion; the House version would cost $14.7 billion.

Meanwhile, Senate leaders pressed for a vote Saturday on a $630 billion-plus spending bill funding the Pentagon, veterans medical care, homeland security programs and keeping the government's other Cabinet agencies running at current levels after the new budget year starts on Wednesday.

That measure also contains $25 billion in federal loans for U.S. automakers to help them retool factories and develop technologies. And it would award Republicans with a long-sought victory - the lifting of a quarter-century ban on oil drilling off the Atlantic and Pacific coasts.

The measure, which Bush is expected to sign, also doubles the money for heating subsidies for the poor and provides $23 billion in aid for disaster-ravaged states. It would avert a shortfall in Pell college aid grants and address problems in the Women, Infants and Children program, which delivers healthy foods to the poor.

[babooph]

Bush did help some business-the Bin Ladin & Che "T" shirt business has bloomed all over the world !

[nicholasma]

NO! No bailout, I never got the chance to own a 500,000.00 house and *** my way to that kind of loan!

Please tell me... 700 b in bad loans this years means what ??? in 4 years their still bad loans !! let then eat there loans. Dot tell me to eat cake!

[praiseallah1]

Don''t Let Bush bailout Wall Street with $700 Billion in Tax Payer money!

Email your States Senators, Congressperson, House Representatives and DEMAND that they vote NO on any Bailout because this money will just be used to pay off Wall Streets debt that they created themselves through their own greed by marketing bundled bad mortgage loans!

We have also sent sorning emails to George Bush, Nancy Pelosi, Harry Reid, Chris Dodd, Barney Frank, McCain, Obama saying we will vote them OUT of Office.

Watch this video which show which lawmakers are responsible for the sub-prime mortgage mess at http://wallstreetmarketnews.blogspot.com/2008/09/who-is-to-blame-for-wall-streets-700.html

[vivekgee]

Paulson is asking money by sunday or else he will make all the world markets fall from monday. This is same as a Street Mugger puttig a pistol on your head and demanding your wallet.

[payasyougo]

Typical Democrat. Doesn''t have the facts correct.

Its the Democrats wanting the $700M with an clueless Bush at the helm, and the conservative Republicans stopping it.

This mess was not caused by the greedy friends of Republicans. Watch the following video. It''s about 10 minutes, names names, shows how it started and who got kickbacks. You can do a google search and find everything in this video just, someone took the time to collect and organize it. It''s pro-McCain in conclusion but you can''t argue with the presented facts.

http://www.youtube.com/watch?v=H5tZc8oH--o&eurl=http://blogsforjohnmccain.com/

[stn_sage]

This IS an example of mad dog Republican politics at it''s very worst!

What lack of priorities, responsibility, and humanity is implicit in their actions!

They have the unmitigated nerve to fiscally endanger the government by asking for $700 billion dollars to bailout a bunch of overpaid, irresponsible, greedy Wall St. investors/bankers, but they refuse to pass a bill for $56 billion that will provide direct aid to individuals and hospitals! Typical! SO Republican!

You''d think while trying for the biggest government GIVEAWAY to the WEALTHY in American history, they''d back off their unofficial ''Screvv the Poor'' policy if only momentarily to ensure their giveaway attempt to Wall St.! But, not these guys, or this party!

Their actions in these cases also reveal their TRUE religious values; that is, they REALLY have NONE!
Which, is WHY they''re constantly trying to hurt the public instead of help it!

[lewiston14]

"Meanwhile, Senate leaders pressed for a vote Saturday on a $630 billion-plus spending bill funding the Pentagon"

That on top of the 700 billion they want. Somebody down in washington is nuts. Bush is going out in style. I really think he has contempt for the people of the US and its payback time from him. Not For him but From him. You are going to pay for every dime you never gave him.

[afmca]

This is the typical Republican mantra .. they have $700 billion for their friends on Wall Streetl but not $56 billion for workers and tax payers struggling in this disaster of Republican capitalism. They have billions in tax credits for Oil Companies; but no money in the til for health care for citizens. The shovel billions to Haliburton for defective war equipment; but nothing for the environment people need to live in. Republicans have their priorities and it is not the workers of the U.S.

"Record spending that could lead to record tax increases or higher deficits will not advance our economic recovery," the White House said in a statement.
----
Don''t ever forget this statement. Rescuing Wall Street would require Record Spending!

[wogerwabbit]

We''re being scammed. Too big to fail is BS. What happened to survival of the fittist? Sell off all their assets and distribute the proceeds to the victims, the American people. Let these weasels collect unemployment and be treated like the lepers of society they are. We''re not responsible for their gambling debts and should not concern ourselves with worry over stock brokers raining down upon the streets after jumping from their sky scrapers... they are no loss and America would be better off with less of them.

[jntlw-2009]

If you have no money for the jobless or the homeless then you absolutely have no mmoney for any bail out of the rich crooks and thugs and risk takers on wall street. Get real. How obtuse can the get? You would bail out the greedy and corrupt and let the workers go impoverished and the homeless with nothing? We are certainly not a christian nation - we are corrupt and evil! It would be inhuman or subhuman to bail out wall street!

[swwils]

They need to block this bill.That other stimulus package didn''t boost the economy.It only boosted Wallmart,and China.Half the people I know didn''t even receive one.We can''t afford another debt,we owe the world more,and more everyday.The UNITED CORPORATIONS OF AMERICA,of thee I see,lands were my father died,lands of the pilgrims pride,from every mountain side let FREEDOM ring!Rock on Fools!!!!!