House Passes $819 Billion Stimulus: On to Senate

Washington, DC, Jan. 29, 2009--President Barack Obama's $819 billion economic stimulus legislation is headed for the Senate after a partisan vote in the House in which Republicans united in opposition and 11 mostly conservative Democrats joined them.

Obama hailed his recovery plan, saying it would "save or create more than three million new jobs over the next few years."

During Senate debate next week, the measure is expected to pick up at least some GOP support. But Obama's hopes of changing Washington's partisan culture went unmet despite the popular president's separate high-profile meetings on Capitol Hill on Tuesday with House and Senate Republicans.

The measure has attracted criticism from Republicans and, privately, from some Democrats for spending billions of dollars on Democratic favorites like education despite questions as to whether they would really put people to work.

But with unemployment at its highest level in a quarter-century, the banking industry wobbling despite the infusion of staggering sums of bailout money and states struggling with budget crises, Democrats said the legislation was desperately needed.

The House plan largely reflects Obama's desires, but after zero GOP support, he suggested the House plan was hardly perfect.

"I hope that we can continue to strengthen this plan before it gets to my desk," Obama said.

The 244-188 House vote registered 177 Republicans unanimous in opposition.

Tens of billions of dollars would go to the states, which confront deep budget cuts of their own. That money marks an attempt to ease the recession's effect on schools and poor people receiving Medicaid health coverage. There's also money for housing weatherization, school construction, road building and other provisions. There are big investments toward Obama's campaign promise of creating jobs that can reduce the nation's dependence on foreign oil.

The centerpiece tax cut calls for a $500 break for single workers and $1,000 for couples, including those who don't earn enough to owe federal income taxes. There are also tax breaks for businesses making investments in equipment and renewable energy production.

The House vote marked merely one of several steps for the legislation, which Democratic leaders have pledged to deliver to the White House for Obama's signature by mid-February.

Already a more bipartisan--and costlier--measure is taking shape in the Senate, and Obama personally pledged to House and Senate Republicans in closed-door meetings on Tuesday that he is ready to accept modifications as the legislation advances.