Obama, Senate Democratic leaders reach deal on stimulus
News of the biggest one-month loss of jobs in 35 years helps spur them to reach a compromise that would cost about $780 billion.
Reporting from Washington — President Obama and Senate Democratic leaders, propelled by news of the biggest one-month loss of jobs in 35 years, hammered out a deal this evening that is expected to move a massive economic stimulus plan through the Senate.
The legislation, a cornerstone of Obama's efforts to revive the economy, would carry a price tag of about $780 billion under the compromise deal, though the final figure was unclear. The bill is expected to cost less than the $819-billion bill approved by the House and far lower than the bill as amended on the Senate floor, which had grown to more than $930 billion.
The bill had stalled amid partisan differences, with most Republicans saying it carried unnecessary spending and not enough in tax cuts. But over the course of several days, a small group of senators from both parties, working with White House Chief of Staff Rahm Emanuel, negotiated the compromise, trimming the bill in hopes of winning backing from a handful of moderate Republicans.
Senate Democratic leaders said they believed they would have enough support to pass the legislation, thought it remained unclear when a vote would be held.
When the compromise was presented this evening to a closed meeting of Senate Democrats, it was greeted with applause, and Democrats emerged saying that the party had rallied behind it.
Under the deal, the cost of the bill would be lowered by scaling back its tax cuts. In addition, lawmakers trimmed many items that they believed did not belong in a stimulus package because they did not spur economic growth, such as $870 million for combating the pandemic flu.
"We trimmed the fat, fried the bacon, and milked the sacred cows," said Sen. Ben Nelson (D-Neb.), a leader of the bipartisan group that worked out the compromise.
"Not everybody is going to get every dollar they want, but it's still a very strong package," said Sen. Barbara Boxer (D-Calif.). "This package proves three words: 'Yes we can.' "
Democratic leaders believe the compromise will pick up support from three GOP moderates -- Sens. Olympia Snowe and Susan Collins of Maine and Arlen Specter of Pennsylvania. Supporters may also need the vote of Sen. Edward M. Kennedy (D-Mass.), who is battling brain cancer but returning to Washington for the vote.
After approval, the Senate and House will have to work out their differences and then vote on a final version of the legislation before sending it to Obama for his signature.
