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US House approves stimulus plan | US House approves stimulus plan |
(40 minutes later) | |
The US House of Representatives has approved President Barack Obama's economic stimulus plan by 246 votes to 183, with the Senate set to vote later. | |
But the $787bn (£548bn) plan failed to get any Republican backing. | |
Earlier on Friday, Mr Obama said that Congressional approval of the stimulus plan was "critical". | Earlier on Friday, Mr Obama said that Congressional approval of the stimulus plan was "critical". |
If the Senate backs the package of tax cuts and spending, designed to rescue the ailing US economy, the president will be able to sign it into law. | |
Members of both houses of Congress reached a deal over the content of the stimulus package on Wednesday. | |
The president says his plan will "save or create more than 3.5 million jobs". | |
But the Republicans argue there are not enough tax cuts and that the economy will be saddled with debt for years to come. | |
Split | |
The only thing the Democrats' stimulus bill will do is stimulate more government and more debt Mike Pence, Republican representative | |
The revised packaged was backed by 246 House Democrats, while seven Democrats and 176 Republicans voted against it, dashing Mr Obama's hopes for bipartisan support. | |
Republicans had insisted on larger tax cuts instead of big spending programmes. | |
The version of the plan approved by the House is split into 36% for tax cuts and 64% percent in spending and money for social programmes. | |
Republican representative Mike Pence said before the vote: "The only thing the Democrats' stimulus bill will do is stimulate more government and more debt." | Republican representative Mike Pence said before the vote: "The only thing the Democrats' stimulus bill will do is stimulate more government and more debt." |
But House Majority Leader Steny Hoyer said: "Millions and millions of people... who have lost their jobs and can't put food on the tables of their families will be helped by this bill." | |
'Driving purpose' | 'Driving purpose' |
Meanwhile, Mr Obama said that in the longer term the government needed to rein in spending. | Meanwhile, Mr Obama said that in the longer term the government needed to rein in spending. |
We need to confront the crisis in the housing sector that has been one of the sources of our economic challenges US President Barack Obama | We need to confront the crisis in the housing sector that has been one of the sources of our economic challenges US President Barack Obama |
"We are going to have to once again live within our means," he said. | "We are going to have to once again live within our means," he said. |
"We have a once-in-a-generation chance to act boldly, and turn adversity into opportunity, and to use this crisis as a chance to transform our economy for the twenty-first century," the president told members of the Business Council in Washington. | "We have a once-in-a-generation chance to act boldly, and turn adversity into opportunity, and to use this crisis as a chance to transform our economy for the twenty-first century," the president told members of the Business Council in Washington. |
"That's the driving purpose of the recovery and reinvestment plan that I've put before Congress." | "That's the driving purpose of the recovery and reinvestment plan that I've put before Congress." |
"We need to confront the crisis in the housing sector that has been one of the sources of our economic challenges." | "We need to confront the crisis in the housing sector that has been one of the sources of our economic challenges." |
Negotiations | Negotiations |
The House approved its $825bn version of the package last week without any Republican support. | The House approved its $825bn version of the package last week without any Republican support. |
The Senate voted to approve a different $838bn version on Tuesday, with few Republicans opting to back it. | The Senate voted to approve a different $838bn version on Tuesday, with few Republicans opting to back it. |
The two versions had to be reconciled in a joint House-Senate committee before facing final votes in the two chambers. | The two versions had to be reconciled in a joint House-Senate committee before facing final votes in the two chambers. |
President Obama increased the pressure on Congress this week, saying he wanted the bill on his desk ready to sign by this weekend. | President Obama increased the pressure on Congress this week, saying he wanted the bill on his desk ready to sign by this weekend. |