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Bid to trim Obama's bail-out plan | |
(about 4 hours later) | |
US senators are reviewing President Barack Obama's $900bn (£616bn) economic stimulus package in a bid to cut costs. | |
Moderate Democrat and Republican senators have argued that the plan should be trimmed by up to $90bn before it is voted through. | |
Mr Obama has warned the economic crisis could become a "catastrophe". | |
It comes as watchdog the Congressional Oversight Panel said the government overpaid for distressed financial assets and shares last year. | |
'Review' | |
In a report to be published on Friday, it says the US Treasury paid $78bn more then it should when buying stakes in banks through the $700bn Troubled Assets Relief Program (TARP). | |
The Treasury had paid $254bn in 2008 in return for stocks and shares in a large number of troubled financial institutions. | |
The panel was established in October 2008 to "review the current state of financial markets and the regulatory system." | |
Meanwhile, Mr Obama said that if Congress failed to pass his package, the resulting recession could destroy five million US jobs. | |
Speaking at a meeting of Democrats from the House of Representatives, Mr Obama said: "They didn't vote for the status quo; they sent us here to bring change. We owe it to them to deliver." | Speaking at a meeting of Democrats from the House of Representatives, Mr Obama said: "They didn't vote for the status quo; they sent us here to bring change. We owe it to them to deliver." |
'Trim the fat' | |
Bipartisan talks are expected to resume Friday morning. | |
The New York Times reported that the cuts included $40bn in aid for states, more than $14bn for various education programmes, $4.1bn to make federal buildings energy efficient and $1.5bn for broadband internet service in rural areas. | |
Democratic senator Mary Landrieu, one of those involved, said the group had "trimmed out some of the fat". | |
SENATE BILL: ACT KEY POINTS Tax cuts for working families: $247bnJob-creating investments in infrastructure and science: $165bnJob-creating investments in health: $153bnJob-creating investments in education and training: $138bnJob-creating investments for an energy independent America: $82bnJob-creating investments tax cuts for small businesses: $21bnHelping Americans hit hard by the economic crisis: $72bn Source: Senate Appropriations Committee | |
She told the Associated Press news agency that the senators had then added extra infrastructure spending. | |
On Thursday, Democratic Senate Majority Leader Harry Reid said he was "cautiously optimistic" that the bipartisan group would reach a deal by the end of Friday. | |
If not, he said he would call for a vote on Sunday, aimed at moving to a final vote. | |
The House of Representatives approved its version of the package last week, without any Republican support. | The House of Representatives approved its version of the package last week, without any Republican support. |
The two different versions of the bill will then have to be reconciled in a joint House-Senate committee before facing a final vote. | |
About one-third of the package being considered is composed of tax relief, with the rest devoted to spending on infrastructure projects. | About one-third of the package being considered is composed of tax relief, with the rest devoted to spending on infrastructure projects. |
Broadly, Republicans want more tax relief and less spending, and they complain that some projects would do little to stimulate the economy or create jobs. | Broadly, Republicans want more tax relief and less spending, and they complain that some projects would do little to stimulate the economy or create jobs. |
Democrats say the spending Republicans are calling wasteful amounts to a tiny percentage of the overall package. | Democrats say the spending Republicans are calling wasteful amounts to a tiny percentage of the overall package. |
It comes amid another batch of gloomy economic figures. | |
The labour department said the number of workers filing new claims for jobless benefits had hit a 26-year high last week. | |
And figures due out on Friday are expected to show that more than 500,000 private sector jobs were purged last month. |