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 Friday evening that clears the way for Senate approval of a massive economic stimulus plan.
The compromise, the product of frenzied behind-the-scenes negotiations, would slice about $110 billion from the bill, which had grown to more than $930 billion as amended on the Senate floor.
It would bring the price tag more in line with the $819-billion bill approved by the House for the spending and tax-cut plan that is the cornerstone of Obama's efforts to revive the economy.
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 Majority Leader Harry Reid (D-Nev.) said he hoped to have a final vote as early as possible next week, but Republican delaying tactics dashed plans to have a weekend vote. Senate Democratic leaders said they believed they would have enough support to pass the legislation.
"For the first time, there's light at the end of the tunnel," said Sen. Charles E. Schumer (D-N.Y.), predicting that Congress would send the bill to the White House, as promised, by the end of next week.
When the compromise was announced Friday evening to a closed meeting of Senate Democrats, it was greeted with applause, and Democrats emerged saying that the party had rallied behind it.
The White House applauded as well. "On the day when we learned 3.6 million people have lost their jobs since this recession began, we are pleased the process is moving forward," Obama spokesman Robert Gibbs said.
Friday's release of a dire unemployment report added to the urgency of Obama's appeal that Congress move with speed. U.S. employers eliminated 598,000 jobs in January, the report said, the biggest one-month plunge since 1974. The unemployment rate now stands at 7.6%.
"These numbers demand action," Obama said. "It is inexcusable and irresponsible for any of us to get bogged down in distraction, delay or politics as usual while millions of Americans are being put out of work."
