29 Jan 2009

House approves US economic stimulus bill

3:24 pm on 29 January 2009

The United States House of Representatives has passed President Barack Obama's $US825 billion economic stimulus package.

Passed by 244 votes to 188, no Republicans backed the plan, saying it was too expensive and would not work.

It must now be approved by the Senate, where it could face stiff opposition as the Democrats have a slimmer majority.

After the vote, Mr Obama urged members of Congress not to "drag our feet or allow the same partisan differences to get in our way".

Mr Obama has said his package, which he hopes to sign into law next month, would help create a favourable climate for American business to thrive.

The bill would cut taxes for people and businesses by $US275 billion, while pumping more than $US540 billion into a range of initiatives including road and bridge repair, increased unemployment benefits, investment in new technology and renovations to 10,000 schools.

Mr Obama has pledged to try to end partisan division in Washington, but the debate on how best to kick start the US economy has devolved into a bitter squabble along party lines, the BBC reports.

Package condemned

In a heated debate, a succession of Republicans in Congress have condemned the stimulus package as a wasteful government spending exercise that will do little to create jobs.

They promoted their own bill, focussing more on tax cuts, which they said would create more jobs for half the investment.

But this was a battle they could not win in the House, where Democrats have a large majority.

It is slimmer in the Senate where Republicans could slow the bill's progress, but Democrats are confident they can get the measure through there, and they have set a target for mid-February to have the bill on Mr Obama's desk to be signed into law.

Failing to attract significant Republican support for the bill is a blow to Mr Obama's hopes of forging a new consensus in Washington, at this time of economic crisis, the BBC reports.

Mr Obama said earlier workers were looking for "bold and swift" action from leaders, and called on businesses to play their part in economic recovery by creating jobs in a "favourable climate" started by government.