WASHINGTON — In a rare bipartisan compromise, Congress approved a two-year, $168-billion economic stimulus package Thursday that will send rebate checks to millions of low- and middle-income Americans, including senior citizens and disabled veterans.
The measure, which came after a concession by Senate Democrats who had demanded substantially more aid, could become law as soon as next week.
Rebate checks should begin arriving in mailboxes in May.
"This plan is robust, broad-based, timely, and it will be effective," President Bush said in a statement.
Bush, whose administration was unusually open to negotiating with congressional Democrats, called it "an example of bipartisan cooperation at a time when the American people most expect it."
The stimulus legislation cleared the Senate, 81 to 16, after Democrats gave up their attempt to pressure GOP lawmakers into backing a more expansive package. Hours later the House, which had passed a smaller stimulus bill last month, approved it, 380 to 34.
"What counts is the result," said Senate Finance Committee Chairman Max Baucus (D-Mont.), who helped lead the Democratic drive for a larger package. "This is a big victory."
The action came amid mounting evidence of an impending recession. Last month, the economy lost jobs for the first time in more than four years.
The Federal Reserve has moved to ease credit and increase the money supply by slashing interest rates five times since summer, including a rare emergency cut in mid-January.
Congress controls the other major public levers of economic influence: government spending and taxes. And for nearly a month, lawmakers debated how to put more cash into the hands of consumers.
Under the terms of the package, single filers will get a maximum $600 rebate, which will phase out for taxpayers with adjusted gross incomes between $75,000 and $87,000.
Married couples will get a maximum $1,200 rebate, which will phase out between $150,000 and $174,000 in income.
In addition, parents will get $300 for each child.
With the Senate vote, more than 20 million senior citizens living on Social Security -- as well as about 250,000 disabled veterans and spouses of deceased disabled veterans -- who were not covered in the House package will be eligible for the rebate checks.
The stimulus legislation also will provide a series of tax breaks designed to spur businesses to invest in new equipment to help them expand in the economic slowdown.
