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SCENARIOS-Final U.S. stimulus bill may be a bit leaner

Published 02/06/2009, 03:11 PM
Updated 02/06/2009, 03:16 PM

Feb 6 (Reuters) - The U.S. Senate and House of Representatives must resolve differences in their respective economic stimulus bills so they can produce a final version to send to President Barack Obama to sign into law.

Lawmakers say the final measure may include the following:

* The price tag may be trimmed to about $820 billion, which Obama has indicated he could accept, senators say. The House-passed package of tax cuts and new spending would cost $819 billion, while the one headed toward anticipated Senate approval would likely cost somewhat more.

* Cuts in spending would likely focus on non-construction projects that critics say would have little, if any, impact on stimulating the economy or creating jobs.

* A bigger proportion of the package could be devoted to tax cuts. Currently, less than a third would go to tax relief. Obama initially proposed 40 percent.

* Increased efforts to stem record home mortgage foreclosures, which have been largely to blame for the economic downturn. Senate Republicans have offered a number of measures to provide relief, including one to reduce mortgage rates.

* The House will likely go along with a Senate proposal to soften a "Buy American" requirement in spending plans, including projects to rebuild roads and bridges. Fearing a trade war, the Senate agreed to require provisions be applied in a manner consistent with U.S. obligations in international accords.

* Little Republican support for the final bill in the House or Senate is expected. No Republican voted for the initial House bill and scant Republican support was expected for the Senate bill -- undercutting Obama's goal of forging increased cooperation between Democrats and Republicans in Congress. (Writing by Thomas Ferraro; additional reporting by Susan Cornwell and Jeremy Pelofsky; editing by Peter Cooney and Todd Eastham)

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