Obama's fiscal stimulus

US President Barack Obama's $825 billion (£580bn) package to stem the US recession has headed towards anticipated passage in a sharply divided House. Most House Republicans were expected to oppose the proposal, saying it needs more tax cuts and less spending, but Democrats were confident that they had the votes to push it through as they seek a final bill for Mr Obama to sign into law by mid-February. "Some of us have heard the voice of the American people and their call for change" in the November election, said House Speaker Nancy Pelosi, a California Democrat. The Democratic-led Senate is expected to pass a somewhat more costly version of the proposal, which would force the two chambers to work out their differences. But before the Senate votes, Republicans are hoping to win some modifications that would be supported by the Democratic president. Mr Obama met on Capitol Hill on Tuesday with House and Senate Republicans. While he again said he would listen to their ideas, Mr Obama noted the urgency in passing legislation. "The main message I have is that the statistics every day underscore the urgency of the economic situation. The American people expect action," he said. The bill the House will debate was written by Democrats, who control the chamber. It combines $275 billion (£193bn) in temporary tax cuts to spur spending and business investment, along with hundreds of billions of dollars for job-creating investment projects, health industry improvements, expanded aid for the poor and unemployed and improving education. Republicans have questioned whether the money actually would create and maintain up to 4 million jobs and whether the money would be spent over too long a period to be effective. Senate Democratic leaders hope they can debate and pass their version of the legislation next week.

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ITN | January 28, 2009

Tags:. .maintain. .noted. .differences. .effective. .fiscal