Senate GOP block vote on stimulus plan

Senate GOP block vote on stimulus plan

By James Politi in Washington

Published: February 7 2008 00:50 | Last updated: February 7 2008 00:50

The US Senate on Wednesday night rejected a $158bn economic stimulus package after Democrats were unable to secure enough support from Republicans. In a close procedural vote, 58 out of 100 senators, voted to end debate, which is central to the Bush administration’s efforts to avert a recession.

A total of 60 votes were needed for the legislation to advance.

Last month, the administration and leaders of the House of Representatives agreed on a stimulus plan worth $150bn which was promptly passed by the House but has faced an uphill struggle in the Senate, as lawmakers tried to add a series of new provisions to the legislation.

These measures, proposed by the Senate finance committee, included the expansion of rebate cheques to senior citizens and disabled veterans, which enjoyed some bipartisan support. But they also included items, such as the extension of unemployment benefits by at least 13 weeks, which were vehemently opposed by many Senate Republicans.

Jon Kyl, the Arizona Republican senator, said “this kind of spending” would actually work to the “detriment, not the benefit, of stimulating the economy”, in a speech on the Senate floor before the vote.

Harry Reid, Senate majority leader said: “When given the opportunity to work in a bipartisan manner to help people hurt by our struggling economy, Republicans chose to politics first. And while they may view this vote as a win, the American people lose.”

The failure of the Senate version of the stimulus package supported by Mr Reid means senators will now have to reconsider the narrower House bill.