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U.S. Republicans may slow Obama's economic plans

Published 01/02/2009, 02:03 PM
Updated 01/02/2009, 02:05 PM

By Donna Smith

WASHINGTON, Jan 2 (Reuters) - Republicans in the U.S. Congress could stand in the way of Democratic President-elect Barack Obama's hopes of signing a massive economic stimulus plan into law right after he takes office on Jan. 20.

The plan, aimed at easing the financial crisis, tops the agenda of the newly elected Congress due to be sworn in on Tuesday -- two weeks before Obama. Hearings in the new Congress could push a final package well into February.

Democrats who control Congress predict the plan -- including tax relief for the middle class and spending on schools, roads and other infrastructure -- will cost between $675 billion and $775 billion.

Republicans voice concern about possible waste and say it could ultimately cost $1 trillion.

Obama plans to meet House of Representatives Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, both Democrats, on Monday and be joined later by Republican leaders Rep. John Boehner and Sen. Mitch McConnell, a Democratic congressional aide said.

The discussions would be the first opportunity for the bipartisan leadership to meet with the president-elect and would cover other issues besides the economy, the aide said.

Other aides said the meeting was not set in stone. Obama transition officials declined to comment.

Republicans said that even though their numbers in the Senate and House were depleted in the Nov. 4 election which brought Obama to power, they would not rubber-stamp a huge new spending plan.

"We need to find the right mix of tax relief and other measures to grow the economy," McConnell said in a statement this week.

"This will require the consideration of alternative ideas, public Congressional hearings and transparency, not a rushed, partisan take-it-or-leave-it approach," he said.

He and Boehner outlined their concerns in statements demanding extensive hearings and seeking tough scrutiny for what will be included in the spending plan.

Democrats will need Republican support in the Senate. Despite election gains, Democrats are still a few votes shy of the 60 needed in the 100-member Senate to advance legislation.

Democrats favor a mix of tax relief for the middle class and spending on new roads, schools and other infrastructure along with money to help doctors and hospitals upgrade their information technology and cash-strapped states pay for Medicaid health care for the poor. (Editing by Mohammad Zargham)

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