Democrats ponder another stimulus
Tax rebate and food stamp money among possibilities

By The Associated Press

Published: October 12, 2008

WASHINGTON — After consulting with Barack Obama, Democratic leaders are likely to call Congress back to work after the election in hopes of passing legislation that would include extended jobless benefits, money for food stamps and possibly a tax rebate, officials said Saturday.

The officials, speaking on condition of anonymity, stressed that no final decisions have been made. House Democrats have announced plans for an economic forum on Monday "to help Congress develop an economic recovery plan that focuses on creating jobs and strengthening our economy.”

Democrats said Obama’s campaign has been involved in discussions on a possible stimulus package. Democrats are increasingly confident of capturing the White House and increasing their majorities in the House and Senate on Nov. 4.

If they are successful, a lame-duck session of Congress would allow them to start work on a response to the credit crunch that has sent stock prices plummeting and also threatens to trigger a deep recession. It often takes two or three months for a new Congress to begin turning out legislation, especially when a new president is settling into the White House.

On the other hand, by attempting to pass legislation next month, Democrats would have to negotiate with President Bush, whose term runs until Jan. 20. Additionally, Senate Republicans, with 49 seats, could block any measure they opposed.

The House passed a $61 billion economic stimulus bill before lawmakers adjourned for the elections, but it was largely symbolic since Senate Republicans had already thwarted efforts to pass a companion measure.

It called for up to 13 additional weeks of jobless benefits in states with the highest unemployment, at a cost of $6 billion. Another $14.7 billion was ticketed to help states cover Medicaid costs.

Enrollment in the federal-state health care program for the poor and disabled often rises with unemployment.

The measure also included money for road and bridge construction.

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