It's just a start, says Obama, as stimulus bill set to be passed

Published on Friday 13 February 2009 23:47

THE United States Senate was set to pass Barack Obama's $800 billion (£556 billion) economic stimulus bill last night, clearing the way for the administration's landmark project to kick-start the economy.

Supporters hailed the package as the biggest stimulus budget passed since Franklin Roosevelt's New Deal in the 1930s.

The US president promised that the plan, which combines funding for big federal projects with tax cuts, will create 3.5 million jobs.

But he warned that it was only the first stage in a recovery programme that must also include further banking bail-outs and help for the housing market.

"Passing this plan is a critical step, " said Mr Obama. "But it's only the beginning of what, I think, all of you understand is going to be a long and difficult process of turning our economy around."

The vote came a week later than expected, after haggling in Congress over the terms and size of the package, and was passed by the House of Representatives earlier in the day after the Obama administration agreed to cut the budget from more than $900 billion to $787 billion. The Senate was expected to pass the bill last night after three Republican senators confirmed they would vote with the Democrats to provide the minimum 60-vote margin.

Two-thirds of the money will be spent on job creation schemes, the rest on tax cuts and help for the unemployed.

"This is a remarkable achievement for President Barack Obama," said the House Speaker, Nancy Pelosi. "Never before has a president passed his first economic policy so boldly."

But Mr Obama largely failed to win the bipartisan support that he had wanted. No Republican House members supported the package, fearing that it amounts to wasteful spending.

Some complained that many of the projects will have little lasting effect on the economy.

"Just because Republicans spent too much money after 11 September and lost our way on financial matters doesn't mean the Democratic party should be allowed to wreck our ship of state," said Republican representative Zach Wamp.