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Congress passes stimulus plan
Senate Republicans were able to block the addition of unemployment benefit extensions and home heating assistance to the final economic stimulus package.

Source: AFSCME Legislative Report

Feb. 11, 2008 - With strong bipartisan support, both the House and Senate gave final approval to an economic stimulus plan that they hope will jump-start the sagging economy. President Bush is expected to sign it.

By a vote of 81-16, the Senate approved a slightly larger and revised $152 billion economic stimulus bill (H.R. 5140) that expanded tax rebates beyond what was provided in the original House-passed bill. The final Senate version, which was quickly approved by the House on a vote of 380-34, extends tax rebates to low-income senior citizens, disabled veterans and widows of veterans.

A more ambitious Democratic-led plan that included an extension of unemployment benefits and low-income home heating assistance was defeated when a procedural motion to limit debate failed 58-41 (60 votes were needed).

It actually had 59 votes, one short of the 60 needed, but Senate Majority Leader Harry Reid (D-NV) switched his vote to "no" at the last minute to preserve the procedural right to revisit the matter at a later time.

The final bill includes rebate checks for individuals and investment incentives for businesses. It provides $600 payments for individuals - $1,200 for couples - plus $300 for each child under age 17.

It would begin to phase out eligibility at $75,000 in adjusted gross income for individuals and $150,000 for couples. Workers who can show $3,000 in earned income last year - not enough to pay taxes - would be eligible for payments of $300.

Checks for $300 would be provided to seniors, disabled veterans and veterans' widows who can show $3,000 in Social Security or veterans' disability benefits last year.

In all, the tax checks will cost the Treasury $105.7 billion, all of it added to the budget deficit.

Missing from the package was any assistance to ailing state and local governments. An amendment by Sen. Jay Rockefeller (D-WV) to provide states with $12 billion in new aid split between an increase in federal payments to states for Medicaid and a flexible state grant was filed but never voted upon.

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