Congressional Democrats Forgetting Key Part of Obama's Relief Package?
by Texas Nate, Wed Jun 11, 2008 at 02:02:24 PM EDT
CQ Politics is reporting on the Democratic leadership's desire for a second package to strengthen the economy that largely lines up with Barack Obama's plans. But are Congressional Dems omitting aid to state governments, one of the key planks of Obama's plan?
Though the prospects for a second stimulus package are slim, the debate gives congressional Democrats an opportunity to rally around Obama.
The massive economic stimulus package enacted in February focused on tax breaks for businesses and rebates for individuals and families.
Obama has proposed a second round of rebate checks, an extension of unemployment insurance, aid to state governments and a new $10 billion fund to help stem the tide of home foreclosures.
He also proposed increasing investment in infrastructure such as roads, schools and bridges.
"There's a need for additional targeted stimulus," said Senate Budget Chairman Kent Conrad , D-N.D.
Schumer said infrastructure investment and a second round of rebate checks could be part of the new package, which Democrats are likely to unveil after the July Fourth recess.
State government spending is a key prop holding up the economy during a recession. Dem leaders might want to check out the NYT, which pointed out earlier this week: