After Give And Take, Deal Made On Stimulus

(CBS/AP)  Moving with lightning speed, the Democratic-controlled Congress and White House agreed Wednesday on a compromise $790 billion economic stimulus bill designed to create millions of jobs in a nation reeling from recession. President Barack Obama could sign the measure within days.

"More than one-third of this bill is dedicated to providing tax relief for middle-class families, cutting taxes for 95 percent of American workers," said Senate Majority Leader Harry Reid at a Capitol news conference where he was joined by moderates from both parties whose support is essential for the legislation's final passage.

House Speaker Nancy Pelosi, D-Calif., Reid's partner in negotiations over more than 24 hours, initially withheld her approval for more than two hours in a dispute over federal funding for school construction. She said the delay had been worth it: "We had to make sure the investment in education" was in the bill.

Earlier Wednesday, Evening News anchor Katie Couric asked Pelosi if she had been too partisan during the process, but the speaker defended the House version of the stimulus package that passed without one Republican vote.

"We have strong philosophical difference in the Congress," Pelosi said. "This isn't inner party bickering, this is major difference of opinion on philosophy, on how our country should go forward. We reject the failed Bush administration economic policies which got us where we are today. The proposals that the Republicans put forth were more of the same. We will not go back."

Obama, who campaigned energetically for the measure, welcomed the agreement in a written statement that said it would "save or create more than 3.5 million jobs and get our economy back on track."

The emerging legislation is at the core of Obama's economic recovery program, and includes help for victims of the recession in the form of expanded unemployment benefits, food stamps, health coverage and more, as well as billions for states that face the prospect of making deep cuts in school aid and other programs.

Another provision will mean a one-time payment of $250 for millions of beneficiaries who receive Social Security, Supplemental Security Income and veterans pensions and disability, according to officials.

The measure also preserves Obama's signature tax cut - a break for millions of lower and middle income taxpayers. Wage-earners who don't make enough to pay income taxes would get a reduction in the Social Security and Medicare taxes they pay.

The president also won money for two other administration priorities - information technology in health care, and "green jobs" to make buildings more energy-efficient and reduce the nation's reliance on foreign oil.

The bill "will be the beginning of the turnaround for the American economy," predicted Sen. Joseph Lieberman, the independent from Connecticut.

But embittered Republican leaders said the deal is exactly the wrong prescription for the economy, reports CBS News correspondent Chip Reid.

"I'm very disappointed," said House Minority Leader John Boehner, R-Ohio. "It appears they made a bad bill worse."

The events capped a frenzied 24-plus hours that began at midday Tuesday when the Senate approved its original version of the bill on a party-line vote of 61-37. Reid, Pelosi and White House Chief of Staff Rahm Emanuel plunged into a series of meetings designed to produce agreement in time for Obama to sign the bill by mid-month.

Pelosi was conspicuously absent from Wednesday's news conference in which members of the Senate announced the agreement. Moments later, Reid arrived in her office, and the two talked by phone with Emanuel, according to officials who spoke on condition of anonymity.

Officials had said previously that one of the final issues to be settled was money for school modernization, a priority for Pelosi as well as Obama and one on which they differed with Collins and other moderates whose votes will be essential for final Senate approval.

Originally, Pelosi and House Democrats wanted a new program dedicated to school construction, but Collins held firm against that. In the end, the agreement added money to a State Stabilization Fund, with the additional provision that governors may use some of the money for modernizing school buildings but not building new ones.

There also was last-minute disagreement about a House proposal that could direct education funds to schools even if a state's governor didn't approve, they said, a squabble that one official said related principally to South Carolina.

Stocks moved higher in the moments after Reid stepped to the microphone just outside the Senate chamber. The Dow Jones industrials, which plunged 382 points on Tuesday, rose 51 points for the day.

Obama has been contending daily that the plan is essential to avoid turning what is already the worst economic crisis in a generation into a catastrophe.

As if to underscore the urgency, he said a few hours before the agreement was announced that machinery giant Caterpillar Inc. plans to rescind some of the 22,000 layoffs the firm recently announced - once the stimulus is signed into law.

Public support for the stimulus may be growing. A new USA Today-Gallup poll put backing at 59 percent this week, up from 52 percent in early January.

Video:
Senate On Stimulus Compromise

Scaling back the bill to levels lower than either the $838 billion Senate measure or the original $820 billion House-passed measure caused grumbles among liberal Democrats, who described the cutbacks as a concession to the moderates, particularly Sen. Arlen Specter, R-Pa., who are under pressure from conservative Republicans to hold down spending.

Working to accommodate the new, lower overall limit of the bill, negotiators effectively wiped out a Senate-passed provision for a new $15,000 tax credit to defray the cost of buying a home, these officials said. The agreement would allow taxpayers to deduct the sales tax paid on new car purchases, but not the interest on loans for the same vehicles.

With numerous demands for the funds in the bill, lawmakers worked to satisfy competing demands.

A Senate-passed provision to give $10 billion to the National Institutes of Health for research - a favorite of both Sen. Tom Harkin, D-Iowa, and Specter, appeared likely to survive.

[keepontopic]

At demsorcommie, you would not know socialism if you fell over it. The new presidency is progressive not socialist, try looking at the governments of Europe for socialist governments if you want to understand what you bleat about. The N A Z I GOP fascist blackshirts are much more dangerous than any centre left or progressive Dem presidency. So try educating yourself - but if you did that you would become an independent or heaven forbid a dem - LOL

[keepontopic]

At demsorcommie, your rascist and fascism attitude is showing again. I thnik that the strength and integrity of the new presidency has knocked your tin hat lose FOOL.

[keepontopic]

At vfjax, your information is factually incorrect. BO had no direct involvement in the running of ACORN - let alone Fannie or Freddie. Your false charge is merely GOP BS based on guilt by association and smear tactics. Do try to keep up with factual information - or is mommy restricitng internet access this week you tool.

[keepontopic]

The Obama presidency is jumping right into solving the problems created by the corrupt and incompetent B U S H administration. The do nothing and tax cuts for the rich ideals of the GOP show both total inflexibility and lack of empathy for main street. I hope the right wing N A Z I wh@ck jobs heads continue to explode when thinking about Obama.

[noloyalisti]

TheMasses09 is still trying to spread the blame to Democrats. I told you to stop listening to Limpballs and the liars on Fixed News. They obviously made your brains in their image: like Jello. Have you not paid attention the last 8 years? Keep up the good work making fools of the righties.

[tincup356]

The Senate has always been home to the country''''s richest elements, and the rising cost of election campaigns has led both parties to encourage self-sufficient candidates to run for public office, boosting the number of wealthy elected officials, analysts say.

Posted by LibertyDeath at 05:30 PM : Feb 12, 2009..............The very best government money can buy,,,,,,All of them are bought and paid for by the lobby dollar,,,,,,which makes ALL of them CRIMINALS,,,,just because they use the word lobby,,,,in place of the word bribery.....which is a crime.Our two party government is a joke at best,,,,,more like a nightmare for the people,,,,,when will both of these IDIOT parties realize they are destroying the middle class......And they are not smart enough to understand...we make the economy go around ,,,,, destroy us and totally destroy America,,,do that and risk revolution,,,the ball is in your court Congress,,,don''t mess up.

[misha128-2009]

Posted by Mousepd at 02:54 PM : Feb 12, 2009

Try some more lies -- if the republicans had no input the tax breaks would not be so high. Perhaps you noted the lack of republican votes cost them part of their business tax breaks in the compromise process.

Even congressional votes have consequences.

[sickofpalin]

anyone home????????????

[sickofpalin]

The REP''s are just a do nothing party-they don''t care about anyone but the rich.

[sickofpalin]

Republicans, with a few exceptions, are going to say to the american people-"you''re on your own" when they vote in mass NO

2010 elections will have even more of them out of office

Voters will "republicans, be careful what you wish for"