Senate Begins Its Horse-Trading Over Stimulus Bill

GREG HITT

WASHINGTON -- The Senate began jockeying Thursday over details of its nearly $900 billion economic-stimulus plan, amid bipartisan calls to ensure that jobs created by the measure go to American workers, not foreign companies or illegal immigrants.

Sens. Ben Nelson (D., Neb.) and Jeff Sessions (R., Ala.) want to mandate that businesses benefiting from the stimulus verify the citizenship of workers, under a government program that is currently voluntary. Already in the legislation are "Buy America" provisions intended to ensure U.S.-made goods are used in projects spurred by the package. These proposals have stirred concerns in the business community that other nations could retaliate against U.S.-made goods with new trade restrictions.

There is also pressure in the Senate to sharpen the focus of the stimulus package to address more directly the nation's housing woes.

Senate Budget Chairman Kent Conrad (D., N.D.) is pushing a proposal to broaden the existing home-buyer tax credit, which now benefits only first-time buyers, to cover purchases of all primary residences. Senate Banking Chairman Chris Dodd (D., Conn.) is suggesting a moratorium on foreclosures be added to the package. "Housing is a tremendous accelerator" for the economy, he said. "If you can generate activity in housing, the benefits of that are phenomenal in terms of the credit markets."

View Full Image

Associated Press

A group of Republican senators noted their opposition to the stimulus package at the Capitol on Thursday. Still, the legislation is expected to have the support of some GOP senators. From left, John Ensign (R., Nev.), Jim Bunning (R., Ky.), Roger Wicker (R., Miss.) and Robert Bennett (R., Utah

Amid the maneuvering, top Senate Republicans are raising doubts about the package, especially the spending. But Senate Republicans aren't marching in lock step against the measure.

Maine Sen. Olympia Snowe, who holds a Republican seat on the tax-writing Finance Committee, is emerging as a strong supporter. "We must simply begin to restore confidence among the American people in the future of our economy," she said in a statement issued after she voted this week for the tax-relief package during Finance Committee action.

After Sen. Snowe, congressional aides suggest four to six other Republican senators could be potential supporters.

Maine's other Republican senator, Susan Collins, said she wants to work "with my colleagues on both sides of the aisle to come up with a final stimulus package that will indeed jump-start our economy." But she worries that not all of the proposed spending -- an aide points to a proposal for research on pandemic flu -- is appropriate for the stimulus package. "We need to try and achieve the right balance, the right size, and the right mix of tax relief and spending proposals," Sen. Collins said. "I am not at all certain that we have achieved these goals in this bill."

Supporters of the initiative backed by President Barack Obama will need some Republican votes to ensure the measure gets the 60 votes needed to overcome any filibuster and clear the Senate. Democrats currently control the chamber with a 58-41 majority, but not all Democrats may support the proposal. Sen. Nelson, a conservative Democrat from Nebraska, said he isn't yet committed to vote for the package. He wants more spending for job-creating infrastructure, but also voiced concern about several spending line-items, including research for the National Institutes of Health.

Who Gets What

See how some of the major stimulus spending will be shared by the states.

In the House, eleven Democrats voted against a different version of the package on Wednesday. Not a single Republican voted for the House's $819 billion legislation, which provides an array of tax cuts and a heavy dose of new spending for new roads and bridges, expanded jobless benefits, food assistance for the poor, wider broadband service and renovations for schools and public housing.

In the Senate, Democrats have sought to ease partisan tensions by setting the stage for an open amendment process, which would allow Republicans to offer a number of alternatives.

Senate leaders have agreed to a proposal by Sen. Charles Grassley (R., Iowa) that would keep millions of middle-income taxpayers from having to pay the alternative minimum tax, a levy originally designed to hit the wealthy.

Senate Majority Leader Harry Reid (D., Nev.) predicted a number of Republicans will eventually climb on board by the time the bill makes it through the Senate, and negotiations conclude on a final compromise package.

To raise pressure on senators, a coalition backing the recovery package, which includes labor and environmental groups, announced Thursday it will air ads around the country to encourage Republicans "to support the Obama plan for jobs, not the failed policies of the past." The ads will run in Maine, New Hampshire, Iowa and Alaska.