Sunday, February 8, 2009

Update on the Economic Recovery Package

While the Senate agreed to an $827 billion draft version of an economic recovery package Friday, February 6, this legislation has stark differences from the version approved of in the House of Representatives.

The most updated version of the Senate economic recovery package is available here. As you can see, the Senate version relies more heavily on tax cuts.

The Senate will likely vote on this package on Tuesday, February 10.

Meanwhile, the House-version of this bill, H.R. 1 the "American Recovery and Reinvestment Act," includes more funding for programs.

Leadership from the House of Representatives are disappointed that the Senate version cut $40 billion in aid to states, including funding for the Neighborhood Stabilization Program. This program was designed to help struggling communities deal with the ongoing foreclosure crisis.

Policymakers must reconcile differences between the House and Senate versions of H.R. 1 before an economic recovery package is finalized and sent to the Administration. As evidenced in this article in the New York Times, this task will be difficult.

As confirmed by this press release, the Treasury Department will spend most of tomorrow, February 9 working on economic recovery plans with the United States Senate - delaying the release of the Administration's plan for the second half of TARP funds in order to do so.

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