White House, Congress Zero in on Stimulus Deal

clipped from www.reuters.com U.S. lawmakers and the White House were moving toward a final deal on Wednesday for what could be a stimulus plan of under $800 billion (556 billion pounds) that Democrats say is crucial to rescuing the struggling U.S. economy. "We're close. I expect to have it done by 3 p.m. (20:00 GMT)," said Senator Max Baucus, one of the negotiators on the package of tax cuts and government spending designed to pull the U.S. economy out of its deep recession. Senator Arlen Specter, a moderate Republican whose support is key to passage, said $789 billion "sounds pretty close" to the overall price tag, while Democratic Senator Ben Nelson added, "The target was actually lower than that." Democrats who control both houses of Congress have mostly rebuffed Republicans, saying the combination of tax cuts and spending to rebuild roads, bridges and other projects in the bill would create or save up to 4 million jobs.

It sounds like some of the worst provisions of the senate compromise are being trimmed:

Nelson said he thought some money for education had been increased in the stimulus compromise, adding that lawmakers were scaling back money for tax incentives to encourage auto and home buying.

Vice President Biden predicts a bipartisan vote, but hopes for increased aid to states. Politico reports:

“We prefer the House number” on funding for states, Biden said. “One of the things our people are doing” in conference is trying to raise the number.

Here's hoping they succeed. Increasing spending at the fed level while decreasing it at the states' would be a wash.