US Congress approves fiscal stimulus package
US Senate passes president Barack Obama's $787 billion fiscal stimulus package
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Saturday, 14, Feb 2009 08:40
The US Senate has passed president Barack Obama's $787 billion (£548 billion) fiscal stimulus package.
Members of both houses of Congress reached a deal on Wednesday over the content of the huge package which involves a combination of government spending and tax cuts.
The plan passed the Senate by 60 votes to 38 on Friday, although a number of Republicans expressed concern that the proposed tax cuts will be insufficient and the US economy will be stuck with the debt for years to come.
Mr Obama, however, believes the package will save or create over 3.5 million jobs in America.
Reports suggest the new president will sign the stimulus package into law on Presidents Day, Monday February 16th.
The plan is expected to see around $120 billion (£83 billion) spent on infrastructure, more than $100 billion (£69 billion) on education and $30 billion (£20 billion) on the creation of "green jobs."
On top of that, more than $212 billion (£147 billion) will go towards tax breaks for individuals and businesses, and another $267 billion (£185) will be spent directly on unemployment benefits and related spending.
Speaking in his weekly address to the American public on Saturday, Mr Obama welcomed the passing of the package, describing it as an "ambitious plan at a time we badly need it".
"This is a major milestone on our road to recovery, and I want to thank the members of Congress who came together in common purpose to make it happen," he said.
"I will sign this legislation into law shortly, and we'll begin making the immediate investments necessary to put people back to work doing the work America needs done.
"This historic step won't be the end of what we do to turn our economy around, but the beginning."
Speaking before the vote on Friday, the president warned of the "long and difficult process" of turning the US economy around but urged Americans to use the opportunity to transform the country.
"We have a once-in-a-generation chance to act boldly, and turn adversity into opportunity, and to use this crisis as a chance to transform our economy for the 21st century," he told members of the Business council in Washington.
The package was amended a number of times before it was finally accepted by the Senate. One of the more controversial original measures was a "Buy American" clause which favoured the use of US materials for government projects.
The term raised concern over international trade agreements, however, and the clause was altered so as not to violate agreements with Canada and Europe.