Senate OKs Obama economic plans

WASHINGTON — In what he hopes will lay the groundwork for a sweeping economic recovery, President-elect Barack Obama Thursday won Senate approval to spend the second half of the controversial $700 billion financial rescue package and embraced House Democrats' new proposal for a historic $825 billion stimulus plan.

Utah's two senators opposed the bailout package, reversing their earlier support for the plan.

While both measures have been the subject of bitter debate, they are coming up for votes in Congress as Obama is still basking in a post-election glow and is likely to get a further boost in popularity from his inauguration Tuesday. The president-elect goes to Ohio Friday on a campaignlike trip to build public support for his efforts to fix the economy and win over wavering members of Congress.

With President George W. Bush focused on giving his final address to the nation Thursday night, the top Senate Democrat, Harry Reid of Nevada, declared that the vote was a victory for Obama.

"This was a test of leadership at a time when leadership is desperately needed," Reid said on the Senate floor.

Obama's economic team worked hand-in-hand with House Democratic leaders on the stimulus package, designed to save or create 3 million to 4 million jobs. One of the costliest bills ever taken up by Congress, it calls for federal spending of roughly $550 billion and tax cuts of $275 billion over the next two years. Democrats said the massive plan was necessary to revive the moribund economy, with strong emphasis on energy, education, health care, and construction. Votes on the package are expected within the next few weeks.

The Senate, meanwhile, heeded a personal plea from Obama, voting 52-42 to release the remaining $350 billion of the deeply unpopular financial rescue package. A House vote is expected next week.

Sen. Bob Bennett, R-Utah, voted against releasing the second half of the bailout money — even though he voted for the original bailout. Sen. Orrin Hatch, R-Utah, did the same, but voted "present" as a favor to sick-at-home Sen. Ted Kennedy, D-Mass., to counterbalance the opposite vote he would have cast in the final margin.

Bennett explained his vote and reversal saying, "Now there is not the emergency we had before, and the final statement from the transition team with respect to how the funds will be used is very troubling because it does not give the assurance that taxpayers will be protected."