Tentative Agreement Reached on the Economic Stimulus Package

House and Senate leadership announced an agreement late Wednesday afternoon on a trimmed $790 billion economic stimulus package. The two houses of Congress spent nearly 24 hours negotiating a merger of the House-passed legislation and the stalled Senate version.

The economic stimulus package has been the center firestorm of President Obama's first few weeks in office. Republicans and even some Democrats are battling the elements of the stimulus.

Republicans are resistant to the overwhelming emphasis on Federal program and agency growth, accounting for most of the projected job stimulus. Republican leaders, like Senator Lindsey Graham (R-SC), contends that "this still create more new government than it does new jobs." In addition, many Republicans are hesitant to sign-off on a bill that is projected to add more than $1 trillion, over the next ten years, to the national debt.

On the other hand, Democrats like House Speaker Nancy Pelosi (D-CA) are holding out for their specific projects or program inclusion. Pelosi withheld her approval for two hours yesterday in exchange for the re-inclusion of funding for school construction. Pelosi said, "We had to make sure the investment in education was in the bill."

The economic stimulus, stalemated on Monday and Tuesday, required President Obama to return to campaign tactics to restart the process. President Obama took his agenda directly to the American people, shuttling off to atown hall appeal in little Elkhart, Indiana and then following up with a prime-time press conference on Tuesday.

The strategy seemed to be effective in getting the Democrats back on track to a compromise, although the Republicans remained unified against the legislation in a irrelevant minority.

The current compromise seems to preserve most of the Obama administrations objectives and promise, despite being shaved a bit. About $150 billion remains in place for infrastructure, specifically targeted at transportation, environmental, and broadband projects.

The bill also seems to have retained about 35 percent of its funding going to tax relief measures, although reduced in size. The negotiated proposal reduces the tax cut of $500 for most individuals and $1000 for most families to $400 and $800 respectively. The much debated $15,000 tax credit for home purchases and similar credits for auto purchases may also be reduced or scrapped.

The final economic stimulus package is expected to move to a vote as early as today.