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Updated 02/07/2009 05:32 PM

Senate Reaches Tentative Stimulus Agreement

By: NY1 News

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The Senate came a tentative agreement by Saturday on a federal stimulus package, but a vote on the bill is not expected until at least Tuesday.

Lawmakers held a special Saturday session to hammer out details of President Barack Obama's economic recovery plan. On Friday night, Senate Democrats reached a deal with a small group of Republicans after a bipartisan group worked to trim some $100 billion from the package.

Officials put the new cost of the bill at $827 billion.

Obama Live On The Economy

NY1 will have live coverage at 8 p.m. Monday of the president's televised news conference about the economy.

It includes Obama's signature tax cut of up to $1,000 for working couples, even if they don't earn enough to pay income taxes. The bill also includes tax breaks for homebuyers and people buying new cars.

Much of the new spending would go toward unemployment compensation, health care and food stamps.

New York senior Senator Charles Schumer praised how both sides of the aisle worked together to pass the bill, and that money for the state's mass transit, police and infrastructure will be untouched.

"For the first time, New Yorkers can feel proud and walk tall, because the federal government is coming to our aid in a way that's commensurate with our needs, as opposed to helping the rest of the country and sort of giving the crumbs to New York," he said.

But some lawmakers say the package is a bad deal for the country.

"There is no provision whatsoever once our economy recovers to somehow begin to reduce this multi-trillion-dollar debt that we have laid on future generations of Americans," said Arizona Senator John McCain. "Mr. President, if this legislation is passed, it will be a very bad day for America."

The House passed its own version of the stimulus package last week.

If the Senate bill passes, both chambers would work out a compromise measure, then vote separately on it before sending the final legislation to the president.

Meanwhile, Obama urged Congress to quickly pass the stimulus package.

In his weekly address on Saturday, the president said the core of the plan is to put Americans back to work. He also praised lawmakers from both sides of the aisle for working out a deal, saying that's what Americans want to see from Washington, D.C.

Senate Reaches Tentative Stimulus Agreement
"We can't rely on a losing formula that offers only tax cuts as the answer to all our problems while ignoring our fundamental economic challenges - the crushing cost of health care or the inadequate state of so many schools; our addiction to foreign oil or our crumbling roads, bridges, and levees," said the president. "The American people know that our challenges are great. They don't expect Democratic solutions or Republican solutions - they expect American solutions."

Obama and his family are spending the weekend at Camp David. He is expected to attend town halls in Indiana and Florida next week to sell the stimulus plan.

In the Republican Party's weekly radio address, Republican National Committee's Chairman Michael Steele said Saturday that Democrats are trying to force unnecessary spending into the plan.

He said Republicans cannot just vote no, because they have their own ideas on how to bolster the economy.

"We've offered plans to spark job creation and investment through lower taxes, to stop the taxation of unemployment benefits and to help Americans keep their jobs and their homes," said Steele. "The comprehensive Republican plan would lower taxes for all working American families. If you're married, the first $16,750 you make this year will be taxed at 10 percent. Why don't we cut that rate in half to give instant buying power to every working American family? Good ideas, lots of them - all left out of this plan by the Democrats in Congress."

Steele said Republicans are ready to work with Democrats to do what's right for the country, but that fair-minded action is needed from Democrats in Congress.

Mayor Michael Bloomberg also weighed in on the stimulus debate.

Senate Reaches Tentative Stimulus Agreement
"I think those that say this has gone from stimulus to being a spending bill, some validity in that," said Bloomberg. "I think there's the issue on who's going to pay back the debt. On the other hand, I think the president and Congress has to do something. The economy is falling off a cliff. The unemployment statistics are really worrisome."

The mayor said with a stimulus package this big, there will always be flaws in the legislation, but said that is just part of the democratic process.

As Congress continued to consider the stimulus, Vice President Joe Biden attended an international security conference in Germany, where he discussed U.S. relations with Iran and Russia.

In his speech to world leaders in Munich, Biden said the United States is willing to open talks with Iran, but will act to isolate and pressure Tehran to abandon its nuclear ambitions and support for terrorism.

He also said it's time to repair the rift with Russia and said NATO and Russia should work together to defeat the Taliban and al-Qaida.

Biden said allies must work together to fight extremism, and that one way other nations can help is to take in some U.S. detainees being held at Guantanamo Bay.