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Senate Republicans Block Economic Stimulus Bill

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The Associated Press

Published: September 27, 2008

WASHINGTON - 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.

But the 264-158 tally was largely symbolic because 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 to $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 long have 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.

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 House plan is more focused on spending that would have an immediate impact on job creation. The Senate measure contained 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.

HOUSE BILL

The legislation also includes:

•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.

•Temporarily increasing federal payments to states to finance the Medicaid health care program for the poor and disabled.

Source: The Associated Press

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