Congress approves $787 billion stimulus package

Saturday, February 14, 2009


Print Comments 
Font | Size:

(02-14) 04:00 PST Washington - --

Less than one month after President Obama took office, Congress passed his flagship proposal Friday night, an unprecedented collection of tax cuts and new spending that Democrats say offers the country its best hope to fight the worst economic crisis since the Great Depression.

After a frenzied month of legislating, the House and Senate produced an economic stimulus bill estimated Friday to cost $787 billion, combining tax cuts with one-time spending on infrastructure investments, expanded unemployment benefits and other programs.

It passed both chambers on a largely party-line vote, winning the support of no Republicans in the House and only three in the Senate.

The outcome amounted to the first significant fruits of November's Democratic victory, in which Obama handily won the presidency while his party expanded its congressional majorities. For the first time in 14 years, Democrats have the power to legislate without serious Republican interference, and Friday they reveled in what many described as a new dawn for liberalism.

Democrats claimed a mandate to beef up the federal government's role in areas including transportation, alternative energy and school construction - and to take on whopping deficits to do so - citing a shift in popular opinion provoked by some of the most vexing domestic problems the country has encountered in decades.

"The bottom line is: With this downturned economy, there is no place to turn but government," said Sen. Chuck Schumer, a New York Democrat who headed his party's Senate campaign efforts last fall. "Most of the Republicans are resisting that, but they're just out of touch with the times."

The Senate passed the bill after keeping the vote open for hours late into the night, to allow Sen. Sherrod Brown to return from his native Ohio, where he had spent the day marking his mother's recent death.

Brown, who was hustled back on a White House-provided plane, represented the Democrats' 60th and decisive vote in favor of the bill about 10:45 p.m EDT. Sixty votes were required because the bill would increase the federal deficit.

While Democrats said the bill offered hope to millions of struggling Americans, Republicans called it a historic - and expensive - mistake.

The stimulus votes expose a "stark divide between the Democratic party and the American people," said Rep. Mike Pence, an Indiana Republican who said he expects that colleagues supporting the plan will hear from angry constituents upon returning to their districts this weekend.

The White House said Obama would probably sign the bill early next week when he kicks off a tour of Western states to pitch proposals that a spokesman said are designed to protect homeowners by preventing foreclosures.

Obama told a business group Friday that passing the stimulus is "a critical step. But as important as it is, it's only the beginning of what we must do to turn our economy around."

Although the dimensions of the final bill closely match a template presented by Obama after his election, the particulars were drafted by House Democratic leaders at the direction of Speaker Nancy Pelosi, D-San Francisco, who invoked special rules to streamline its passage to a final vote.

Many Republicans described the 1,071-page bill as an act of "generational theft" that would dangerously increase federal deficits, saying Pelosi's maneuvers had limited their ability to influence its contents. The fact that Obama was able to enact such a sweeping expansion of government's role with little of their cooperation betrayed much of his campaign-year rhetoric about seeking bipartisan consensus, several said.

"The people spoke, and I don't think this is what they had in mind," said Sen. Lindsey Graham, R-S.C.

The few concessions to minority views came at the hands of three Republican senators - Maine's Susan Collins and Olympia Snowe, and Pennsylvania's Arlen Specter - and a handful of centrist Democrats who drove negotiations that helped shrink the size of the legislation and keep a substantial portion of it devoted to tax cuts.

House Democratic leaders had worked to include greater public investments as part of the package, and several of them grumbled Friday that they expected the Senate's effective requirement of 60 votes for passage of major legislation would continue to remain the strongest check on the party's governing ambitions.

"We had to do what we wanted to do and sell it to those three senators," said Rep. George Miller, D-Martinez, chairman of the House Education and Labor Committee.

In California: Poor and disabled students are in line to get more fed help. B1

California's share

California is expected to receive a big share - roughly 10 percent or $79 billion - of the $787 billion stimulus bill passed by Congress on Friday. Sen. Barbara Boxer, D-Calif., said the figure could go higher because many programs, such as unemployment insurance and subsidies for health insurance for the unemployed, go directly to workers who have been laid off. California's 9.3 percent unemployment rate is among the highest in the country.

Rough breakdown of the American Recovery and Reinvestment Act

-- Appropriations: $308.3 billion (39.2 percent)

-- Direct spending (unemployment, health spending, etc): $267 billion (33.9 percent)

-- Tax cuts: $211.8 billion (26.9 percent)

Examples of California's share

-- Medicaid: $11 billion

-- State stabilization fund: $5.8 billion

-- Community development block grants: $127 million

-- Food stamps: $1.6 billion

-- Public housing capital fund: $118 million

-- HUD HOME program funding: $324 million

-- Homelessness Prevention Fund: $190 million

-- State energy program: $224 million

-- Weatherization: $192 million

-- Child care development block grant: $220 million

-- Head Start: $82 million

-- Title 1 Education for Disadvantaged: $1.6 billion

-- Special education: $1.2 billion

-- Education technology: $114 million

-- Community services block grant: $89 million

-- Dislocated workers state grants: $225 million

-- State employment service grants: $45 million

-- Law enforcement: $229 million

-- Highway investments: $2.6 billion

-- Public transit: $1 billion

-- Drinking water: $160.2 million

-- Clean water: $284.6 million

-- CalFed bay delta program: $50 million

-- Food banks: $19.5 million

-- National School Lunch Program: $9.7 million

-- Department of Education Vocational Rehabilitation: $47 million

-- Senior Meals program: $13 million

-- Emergency Food and Shelter program: $13 million

Source: Sen. Barbara Boxer, D-Calif.

This article appeared on page A - 5 of the San Francisco Chronicle

Comments


Inside SFGate

'Sorry, Saddened' Singer Chris Brown was arrested Feb. 8 in domestic violence incident.
It Was Love At First Dream One nighttime vision was all it took. On The Couch.
Autopilot Mistake? Pilot of jet that crashed near Buffalo may have violated safety rule.

Bay Recruiter Top Jobs

DENTAL

PEDIATRIC DENTIST Children's Dental

GLAZING

SUPERVISOR East Bay open shop w

NURSE

PRACTITIONER & LVN w/ IV experience

SOFTWARE

Engineer MS Software Systems

BUSINESS OPP

Leading Edge - Recession Proof!

California Advertising

Yahoo! HotJobs

Homes

Search Homes »


Cars

Reader wonders how to get into stunt driving

Dear Tom and Ray: I want to know how to get a job, a very specific job. It seems like every car commercial on the networks now shows...

Search Cars »


Jobs

Despite stimulus, no quick turn for jobs, economy

No, the big stimulus plan won't "save or create 3.5 million jobs," as the president and congressional Democrats claim _ at least not this year. The economy will remain feeble...

Search Jobs »

Advertisers