Republicans remain wary of Obama stimulus plan

Washington: Republicans in 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 January 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 Cong-ress 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 (Dh2.48 trillion) and $775 billion.

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

"I am concerned by media reports that suggest the Democrats' emerging proposal may cost taxpayers up to $1 trillion in new government spending, with little debate or public scrutiny of the still-unseen legislation," House Republican Leader John Boehner said in a statement on Friday.

"Let's be clear: it is essential that this legislation be debated in a fair, open, and honest way," he said.

The break down

At least five Democratic governors say $1 trillion is necessary.

The five, who represent New York, New Jersey, Massachusetts, Ohio and Wisconsin, said on a conference call on Friday they would like the package to include $250 billion for education funding, $250 billion for social services such as the Medicaid health-care programme, and $500 billion for infrastructure. Massachusetts Governor Deval Patrick said infrastructure should be defined more broadly than roads and bridges and include public housing, the power grid, and electronic medical records.

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

A Senate Republican aide, who asked not to be identified, said Democrats could build stronger, bipartisan support with an econ-omic stimulus measure costing less - about $500 billion.

Global financial markets rallied on Friday, in part due to hopes that an econ-omic stimulus bill will soon move through Cong-ress.

Obama planned to meet House of Representatives Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, both Demo-crats, tomorrow and be joined later by Boehner and Senate Republican leader Senator 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.

Boehner said in his statement he hoped tomorrow's gathering would be the first of many bipartisan meetings on challenges facing the United States.

No rubber stamp

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

"We hope that Demo-crats in Congress don't attempt to shut the American taxpayer out of this process by trying to pass a bill that hasn't been the subject of bipartisan review and that hasn't been available for public inspection," McConnell said on Friday.

He and Boehner have called for extensive hearings to scrutinise the economic plan.

Democrats favour 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.