Wash. Democrat looking to hitch stimulus to bailout

Rep. Jim McDermott (D-Wash.) on Thursday said he will try to attach the entire $61 billion economic stimulus package to the Wall Street bailout bill when it comes to the House floor, despite the fact that the stimulus bill has been a complete non-starter in the Senate.

The Senate overwhelmingly passed a Wall Street recovery package Wednesday night that the House was unable to agree to, thanks in large part to the addition of $149 billion in tax breaks.

{mosads}The House is scheduled to bring the new bill to the floor on Friday, and Democratic and Republican leaders have been working furiously to secure its swift passage and avoid a repeat of Monday, when the stock market plummeted in the wake of the bill’s defeat in the House.

But McDermott’s plan to offer the entire $61 billion economic stimulus bill as an amendment to the new bailout bill could throw a wrench into the entire works.

The proposal does not have the backing of Democratic leaders.

House Majority Leader Steny Hoyer (D-Md.), who has been emphatic in his calls for quick passage of the bailout bill, said he was not consulted by McDermott and questioned the strategy.

“It’s not a smart strategy if we want to accelerate this,” Hoyer said. “[Senate Majority Leader Harry] Reid [D-Nev.] has said he cannot get the 60 votes in the Senate for the stimulus package.”

The House last week passed the stimulus bill on a 264-158 vote, with the help of 41 Republicans.

Hoyer did say that he is still working with Republicans to reach an agreement on a standalone provision to extend unemployment insurance, but indicated his preference for leaving it off the bailout bill.

“Everyone has agreed on the need to move this quickly,” Hoyer said. “Changes are possible, but I don’t think probable … I am not sympathetic to making the Senate wait, but I am sympathetic to making the economy wait.”

McDermott — who voted for the original bailout bill — now says the stimulus provisions, including an extension of unemployment insurance benefits and billions in spending on transportation and infrastructure projects, are necessary for inclusion in the new bailout bill.

“Unless we address the needs of Main Street, the bailout legislation as passed by the Senate will never be seen by the American people as anything except Congress pandering to Wall Street,” McDermott said in a statement.