THE US House of Representatives last night passed President Barack Obama’s $825 billion stimulus package, aimed at lifting the economy out of recession through tax cuts and more than a half- trillion dollars in new spending.
The 244-188 vote sends the measure to the Senate where Republicans, who want more tax cuts and less spending, will have more power to demand changes. No Republicans voted for the plan, and 11 Democrats joined them in opposition.
Obama yesterday urged lawmakers to work out their differences in the next few weeks, saying delay would only cost more people their jobs. Obama said he was “grateful” for the vote.
“The plan now moves to the Senate, and I hope that we can continue to strengthen this plan before it gets to my desk,” he said in a statement.
The president invited Democratic and Republican leaders from the House and Senate to the White House last night, said press secretary Robert Gibbs.
The Bill approved by the House of Representatives includes about $550 billion in new public spending and approximately $275 billion in tax cuts.
Much of the spending would fund healthcare, expanded unemployment benefits, food stamps and other programmes geared towards the recession’s victims.
Other spending would fund infrastructure projects, including improvements to the electrical grid and subsidies for improvements in energy efficiency.
As yesterday’s debate began, Democrats echoed Mr Obama’s call for urgent action but Republicans complained of wasteful spending that would not have a significant impact on the economy.
Testifying before the Senate Foreign Relations Committee yesterday morning, former vice- president Al Gore said that swift action on the economic stimulus package would help the new administration to start tackling the issue of climate change.
“In order to repower our economy, restore American economic and moral leadership in the world and regain control of our destiny, we must take bold action now,” Mr Gore said.
“The plan’s unprecedented and critical investments in four key areas – energy efficiency, renewables, a unified national energy grid and the move to clean cars – represent an important downpayment and are long overdue. These crucial investments will create millions of new jobs and hasten our economic recovery – while strengthening our national security and beginning to solve the climate crisis.” Mr Gore urged Congress to act quickly on introducing a cap and trade system for carbon emissions which, he argued, would allow the US to enter talks on the Copenhagen climate treaty with greater authority.
“This treaty must be negotiated this year,” Mr Gore said.
“Not next year. This year. A fair, effective and balanced treaty will put in place the global architecture that will place the world – at long last and in the nick of time – on a path toward solving the climate crisis and securing the future of human civilisation.”
Mr Obama moved a step closer towards assembling his full White House team yesterday when the Senate Judiciary Committee voted to confirm Eric Holder as the first African-American attorney general. – (additional reporting Bloomberg)