US economy rescue plan: Congress approves £397 billion bail-out plan

Published on Friday 3 October 2008 19:38

THE lower house of the US Congress passed the £397 billion rescue package for the nation's troubled economy today.

The approval of the Bill from the House of Representatives came as members voted on the proposals a second time after they shocked and "disappointed" world leaders by rejecting the measures on Monday.

The Senate stepped in midweek and passed the Bill first by adding more than 100 billion dollars (56.9 billion) of so-called "sweeteners" to the proposals, piling pressure on the House to follow suit.

The Bill, which was passed by 263 votes to 171, will now go through an "enrolling" process in the US Congress – a form of housekeeping to ensure the Bill passed by the House today and the one passed by the Senate on Wednesday are the same and that it is ready for President George Bush to sign.

It will then be sent to the President's desk, where HR 1424, the Emergency Economic Stabilisation Act of 2008, will be signed into law, possibly as early as later today.

Mr Bush is expected to make a statement on the Bill at 6.55pm BST.

In the UK, Prime Minister Gordon Brown said the global financial crisis required new ways of governing and set out new plans for a National Economic Council which will meet for the first time on Monday.