In a move that did not receive major Republican support, the Senate has approved a $838 billion stimulus bill designed to aid in the economic recovery. The stimulus bill is heavy on spending and tax cuts. While although expensive, politicians believe it is the "right thing to do."
The 61-37 final vote agrees with the passage in the House of measure just like this one, now the stimulus bill heads to a House-Senate conference committee, and finally to President Obama to sign. Here are some quick details about the $838 billion stimulus bill and what it all means.
Although laden with heavy spending and tax cuts, the $838 billion stimulus bill plans on strengthening the ailing banking industry with over $1 trillion. The support is in the form of a public-private partnership that includes both the Treasury Department and the Federal Reserve. The plan is huge as it is historic in the manner of any one industry receiving emergency federal assistance in order to survive.
Senate Majority Leader Harry Reid called the bill, loaded with spending and tax cuts, "the first step on the long road to recovery."
That support to banks is designed to trickle down to both consumers and small businesses in the form of increased resources for consumer credit and small business loans. The move will move the needle a bit from $200 billion to $1 trillion in financial support from the stimulus bill.
States, however must wait on their cut from the economic stimulus bill. About 40 states are operating at deficits, yet several governors are holding up the progress. Each governor must submit their budgets in order to release any funds from the stimulus package. Until all 50 states are accounted for, no stimulus funds will be given to the states to aid in their budget woes. There are reports that governors who have yet to provide budgetary information are now scraping together budgets in light of the passage of the stimulus bill.
However, Florida Governor Charlie Crist is prepared and ready for federal assistance. Gov. Crist has delayed the delivery of his budget address until later this month, as he awaits an infusion of $13.3 billion over the next three years from government funding. The Republican governor planned to appear with Pres. Obama at the Fort Meyers rally today in order to persuade minds about passing the stimulus bill.
One big question that still lurks in many minds is the infrastructure funding and how that will be administered within the economic stimulus bill package. The stimulus package could provide up to $100 billion worth of very necessary repairs on the nations' bridges and roadways.
Pittsburgh's 85-year old Liberty Tunnel needs about $11 million worth of repair and renovations. Over 63,000 vehicles pass through it daily, and the tunnel was last refurbished over 30 years ago. Liberty Tunnel authorities are hoping for some help from the stimulus package to make these renovations a reality.
Expert economists are already saying that boosting work on this country's infrastructure won't provide long term jobs, but it will definitely provide needed repairs. It's been reported that the nation's schools, rail systems, dams, bridges and roads could stand some $2.2 trillion worth of work over the next five years. The economic stimulus package could remove half of the financial sting this project requires, according to the executive director of The American Society of Civil Engineers.
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