Senate, House Reach Compromise on Stimulus Bill

By , Money Morning • February 12, 2009

By Jason Simpkins
Managing Editor
Money Morning

Negotiators from the House of Representatives and the Senate reached a compromise on the proposed economic stimulus bill today (Wednesday) and could have a bill on President Barack Obama's desk by the end of the week, CNN reported.

"The bills were really quite similar, and I'm please to announce that we've been able to bridge those differences," said Reid, the Senate majority leader. "Like any negotiation, this involved give and take, and if you don't mind my saying so, that's an understatement."

The package has been reduced, however, from the $838 billion in spending approved by the Senate Tuesday to $789 billion.

Multiple Democratic sources had offered details on topics that had to be worked out CNN said.

• 35 percent of the bill would be tax cuts; 65 percent would be spending.
• Tax breaks for workers that had been set at $1,000 per family or $500 per individual would be scaled back to $800 per family and $400 per individual.
• $44 billion in aid to states, including money for education and other services.
• More funding to help people buy health insurance through the federal COBRA program.
• $6 billion to $9 billion for modernizing and repairing schools.

"The votes are there for passage, that is clear," Senate Finance Committee Chairman Max Baucus told Bloomberg. Baucus said, while cautioning that lawmakers are working out details of the agreement. "Everyone is giving in here."

News and Related Story Links:

• Bloomberg:
  Lawmakers Agree on $789 Billion Stimulus Proposal, Baucus Says

• CNN:
  Lawmakers Agree on $789 Billion Stimulus Proposal, Baucus Says

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