House passes stimulus package

The House passed an $819 billion economic recovery package, over objections that it includes too much spending that won't quickly boost the economy and that it doesn't include enough projects that would immediately create jobs.

The Associated Press reports that the vote was 244-188, after a Republican alternative, comprised almost entirely of tax cuts, was defeated, 266-170. Democrats control the House with 255 seats to 178 for Republicans.

The package passed without a single Republican vote -- a fact quickly noted by supporters of the measure.

Americans United for Change, a coalition of progressive and labor groups, said in a statement, "While the House of Representatives passed the economic recovery package this evening by a wide margin, scoring a major victory for American workers and families and a beleaguered American economy, they did so without a single Republican vote. Republicans appear to have learned nothing from the message sent to all of our elected officials in the most recent election that it’s time to set partisan games, politics and ideology aside and work for bold solutions to the daunting challenges facing the American people. Rather than address the most severe economic crisis America has faced in a generation, Republicans retreated to the partisan games and failed policies of the past eight years which cost them dearly in the last two elections. In turning their backs on the American people during a time of historic economic crisis to score cheap political points, Republicans in the House at worst may have committed political suicide and best proved their irrelevance to the process."

But Representative John Boehner, the top Republican in the House, tried to make the most of 11 Democrats voting against the package.

“This was a bipartisan rejection of a partisan bill," he said in a statement. "Families and small businesses across America are struggling, and they are counting on their leaders in Washington for ways to strengthen our economy. House Republicans want to work with congressional Democrats on legislation that fulfills the goal set by President Obama: crafting a bipartisan plan focused on job creation. Unfortunately, the trillion dollar government spending bill before the House today was not that plan, and a bipartisan coalition of Members rightfully rejected it. It is time for Capitol Hill Democrats to finally work with Republicans on a job creation package that lets families and small businesses keep more of what they earn and that is supported by the bipartisan majority that the American people expect on an issue so important.”

The package includes about $544 billion in new spending over the next two years and $275 billion in tax cuts for individuals and businesses.

House Republicans complained that bigger tax cuts would be more effective.

But some Democrats and economists say it doesn't include enough infrastructure spending on transportation and other construction projects.

The package needs ten times the infrastructure money to create the construction and factory jobs to stoke the economy, CNBC commentator Jim Cramer said on MSNBC this afternoon.

"One city, Boston, could use all that money," he said.

After the vote, President Obama issued this statement:

“Last year, America lost 2.6 million jobs. On Monday alone, we learned that some of our biggest employers plan to cut another 55,000. This is a wakeup call to Washington that the American people need us to act and act immediately.

That is why I am grateful to the House of Representatives for moving the American Recovery and Reinvestment plan forward today. There are many numbers in this plan. It will double our capacity to generate renewable energy. It will lower the cost of health care by billions and improve its quality. It will modernize thousands of classrooms and send more kids to college. And it will put billions of dollars in immediate tax relief into the pockets of working families.

But out of all these numbers, there is one that matters most to me: this recovery plan will save or create more than three million new jobs over the next few years.

I can also promise that my administration will administer this recovery plan with a level of transparency and accountability never before seen in Washington. Once it is passed, every American will be able to go the website recovery.gov and see how and where their money is being spent.

The plan now moves to the Senate, and I hope that we can continue to strengthen this plan before it gets to my desk. But what we can’t do is drag our feet or allow the same partisan differences to get in our way. We must move swiftly and boldly to put Americans back to work, and that is exactly what this plan begins to do.”

UPDATE: Representative Edward J. Markey, a Malden Democrat, praised the passage of the bill, and said it would provide more than $6 billion for Massachusetts and could save or create nearly 100,000 jobs by the end of this decade.

“Massachusetts has been a leading force in our economy since the Industrial Revolution,” Markey said in a statement. “Our tradition of innovation will continue as we repair and renew our economy with smart, targeted investments in health, energy and technology initiatives. It will put people to work now and build the industries that will engineer long-term economic growth.”

“The American Recovery and Reinvestment Act will start rebuilding our economy immediately by creating or saving millions of jobs. From advanced, plug-in hybrid batteries that will propel our vehicles and automotive industry into the future, to weatherization programs that will save consumers thousands of dollars on energy bills while creating thousands of new jobs, this legislation will modernize our cars, our homes and our workforce.”