Senate, House Begin Talks on Stimulus

Senators began talks with the House yesterday to determine which tax breaks and spending provisions will survive as part of a final stimulus package, but despite the optimism leaders in both chambers expressed about quickly resolving their differences, the negotiations are expected to be contentious. Democrats in the House and Senate remain broadly unified around the central provisions of the legislation, which is intended to create or save up to 4 million jobs, but several disputes could extend negotiations beyond their goal of having a finished product by the weekend. The Senate's package is about $19 billion more than the $819 billion House package. It provides less in federal spending and more in tax breaks. On the spending side, likely flashpoints include Medicaid and school construction, both top priorities in the House that the Senate scaled back or dropped. On the tax side, the Senate included several breaks that could fall off the table, including incentives to buy homes and automobiles, along with a temporary fix to the alternative minimum tax. The Obama administration appears to have taken the House's side in the battle over school-construction funding.