US Congress set to vote on stimulus plan

The US Congress is expected to pass an amended $789 billion economic stimulus plan that includes extra spending and tax cuts to help pull up the economy out of recession.

The final package, agreed to by both sides of the Congress, includes $507 billion in extra spending in social and healthcare programmes and another $282 billion in tax rebates to spur sales and consumption. 

The Democrats are pushing for quick passage of the bill which, they say, will create or save up to 3.5 million US jobs.

The House of Representatives is preparing to vote by midday, followed by the Senate in the early evening, although there is still no final agreement between Democrats and Republicans in the senate.

Most Republicans oppose the stimulus package, saying it depends heavily on government spending instead of giving the much-needed tax sops that would better boost the ailing economy.

Democrats had scaled down the package from as much as $937 billion in order to buy Republican votes that were needed to overcome procedural hurdles in the Senate.

Three Republican senators - Susan Collins, Olympia Snowe and Arlen Specter - agreed to back the legislation if it was pared down to below $800 billion.

The revised stimulus package now offers less money for building new schools. Congressional negotiators also scaled back tax incentives aimed at boosting flagging car sales.

Still, the package includes nearly $54 billion to help states with budget deficits and to modernise schools, $27.5 billion for highway projects, $8.4 billion for public transportation and $9.3 billion for high-speed rail service.