Congress, White House Agree on $790B Stimulus Bill

Senate Majority Leader Harry Reid of Nev., talks to reporters on Capitol Hill in Washington, Tuesday, Feb. 10, 2009, after the Senate passed the stimulus bill.

(J. Scott Applewhite/AP Photo)

Moving with lightning speed, the Democratic-controlled Congress and White House agreed Wednesday on a compromise $790 billion economic stimulus bill designed to create millions of jobs in a nation reeling from recession. President Barack Obama could sign the measure within days.

"More than one-third of this bill is dedicated to providing tax relief for middle-class families, cutting taxes for 95 percent of American workers," said Senate Majority Leader Harry Reid at a Capitol news conference where he was joined by moderates from both parties whose support is essential for the legislation's final passage.

House Speaker Nancy Pelosi, D-Calif., Reid's partner in negotiations over more than 24 intense hours, initially withheld her approval in a lingering disagreement over federal funding for school construction. "We had to make sure the investment in education" was in the bill, she said.

Obama, who has campaigned energetically for the legislation, welcomed the agreement in a written statement that said it would "save or create more than 3.5 million jobs and get our economy back on track."

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The emerging legislation is at the core of Obama's economic recovery program.

The president's signature tax cut was preserved — a break for millions of lower- and middle-income taxpayers of $400 per individual and $800 per couple. That's less than the $500 and $1,000 the White House originally sought, although officials said it would mean an estimated $13 per week extra per paycheck.

Wage-earners who don't earn enough to pay income taxes would get a reduction in the Social Security and Medicare taxes they pay.

The bill also includes help for victims of the recession in the form of expanded unemployment benefits, food stamps, health coverage and more, as well as billions for states that face the prospect of making deep cuts in school aid and other programs.

Another provision will mean a one-time payment of $250 for millions of beneficiaries who receive Social Security, Supplemental Security Income and veterans pensions and disability, according to officials. They added that the measure will include $46 billion for transportation projects such as highway, bridge and mass transit construction.