House, Senate quickly reach $790B stimulus deal

WASHINGTON -- Racing against a self-imposed deadline to finish an economic stimulus bill this week, congressional leaders tentatively agreed Wednesday to a $790 billion plan to boost the economy and create or save 3.5 million jobs.

Though details were still spilling out and some Republicans complained they had been left in the dark, House and Senate leaders said they hoped to pass the bill in both chambers by week's end, a timetable that could get it to President Obama by Monday. "This is when the recovery must begin," said Senate Majority Leader Harry Reid, D-Nev.

Obama, who has been pressuring Congress to act swiftly on the bill, released a statement thanking "Democrats and Republicans in Congress who came together around a hard-fought compromise that will … get our economy back on track."

The tentative deal capped a frenzied week on Capitol Hill during which a group of moderate senators cut billions from the bill so that it could clear an initial vote Tuesday. Three Republican senators — Susan Collins and Olympia Snowe of Maine and Arlen Specter of Pennsylvania — joined all Democrats and two independents in that vote. All three said they would vote for the compromise plan. Reid called them "three very brave people."

The measure includes a mix of tax cuts, help for victims of the recession in the form of unemployment, health insurance and food stamp benefits, and big investments in infrastructure, energy and education.

Negotiators trimmed $29 billion from the $819 billion House version of the stimulus by slashing spending and reducing tax cuts. Obama's signature "Making Work Pay" tax cut would be reduced 20%, to $400 annually for individuals and $800 for couples. Funding for school construction was eliminated from the bill.

"Today we have shown that, working together, we can address the enormous economic crisis facing our country," Collins said. She said Obama agreed to trim his hallmark tax cut to advance the bill to a final vote.

"Everybody gave. The president was willing to give," said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee. "There is no choice here. This is a no-brainer."