FAQ: Rival Measures

What is it?

The president's bill proposes the biggest US spending splurge since the 1930s New Deal. The aim is the same: to get the US out of recession as fast as possible. He is proposing to spend more than $800bn. A big proportion of this is for massive projects to help create or save jobs, including billions on bridges, roads, waterworks and sewage disposal. Another area of big expenditure is on education. To placate Republicans, a high proportion of the bill is made up of tax cuts. The congressional budget office estimates the bill would create between 1.3m and 3.9m jobs by the end of 2009. US unemployment is 7.6%, about 11 million.

What happens next?

The Senate voted yesterday, the House voted on 28 January. The problem is that there are now two stimulus bills: the House version and the Senate version and the two sides now enter into negotiation to find consensus. Obama is hoping that the agreed bill will have passed the House and the Senate in time for him to sign it on Monday.

How do the two bills differ?

The House's totals $819bn and the Senate's $838bn. There is consensus on about 80-90% of the proposals. Both would spend $47bn to help with unemployment benefit, increase spending on food stamps and raise and extend tax credits. But Senate Republicans have stripped out a lot of the education provisions, which Obama wants restored. The House bill proposes $79bn for states to spend on higher education, compared with $39bn in the Senate version. That version reduces the tax breaks for the working class. But it sets aside $40bn for renewable energy projects and fuel-efficiency, compared with the House bill's $28bn.

Why are the Republicans refusing to give their support?

Not a single Republican in the House voted for the bill and only three did in the Senate. Republicans say there is not enough stimulus in the bill and that the amounts involved mean future generations would be saddled with debt. The public is divided over whether the plan will work and the Republicans want to be in the position of saying they opposed it, which could be helpful in next year's congressional elections.