Casey, Snowe support broad stimulus

A pair of centrist senators from both parties came out
Thursday for a broad economic stimulus package in January, signaling a possible
fight with Republicans who want a more modest approach.

Sens. Bob Casey Jr. (D-Pa.) and Olympia Snowe (R-Maine)
each sent letters to Majority Leader Harry Reid (D-Nev.) and Minority Leader
Mitch McConnell (R-Ky.), outlining their respective wish lists for a stimulus
package that is passed quickly after President-elect Obama takes office.

{mosads}The letters contain many of the same ideas. Both Casey
and Snowe want to extend unemployment benefits, boost funds for food stamps,
aid small businesses, offer incentives for energy-efficient homes, provide aid
to homeowners facing foreclosure and invest in infrastructure.

Such an expansive package, however, is likely to run into
a Republican roadblock next month, denying Democratic efforts to give the Obama
administration a quick, overwhelming legislative victory. Republicans have sent
strong signals that they will insist on modesty in the stimulus plan’s price
tag.

Casey acknowledged as much in a conference call with
reporters, agreeing that there may be a tipping point in how much Democrats are
able to do. He argued, however, that the country’s poor economic health can
only be confronted with a sizable response.

“It’s one of those situations where if you don’t confront
the challenge in a substantial way, you’re going to miss the opportunity and
six months later you’ll be trying something again,” he said. “Even conservative
Republicans say we can’t just lay back and let the economy work its way through
this. But I’m sure there will be a vigorous debate about the size and scope.”

Casey’s call was similar to an effort announced earlier
Thursday by a coalition of 22 progressive, Democratic-leaning organizations
that are planning a national media campaign of up to $5 million to pressure
Congress into approving a stimulus plan as quickly as possible after Obama’s
inauguration.

The group avoided proposing a specific wish list, arguing
only for a broad bill that can achieve a lopsided vote. Like Casey, they argued
that the country’s situation calls for a forceful approach.

Snowe’s letter endorses Obama’s goal of creating 2.5
million new jobs through an economic recovery, such as by increasing funding
for job-training programs and investing in a broad, $136 billion list of
infrastructure projects as called for by the National Governors Association.

Snowe also endorses the idea of using Troubled Asset
Relief Program (TARP) funds to prevent home foreclosures, as well as tax breaks
for small businesses and stronger regulation of the credit markets.

Snowe is the ranking Republican on the Senate’s Committee
on Small Business and Entrepreneurship.

“The challenge to steer our economy toward recovery is
starkly evident in ever-increasing unemployment numbers, the precipitous drop
in retail spending and the rapid increase in home foreclosures,” Snowe wrote
Reid and McConnell. “Swift job creation and efficient distribution of resources
are needed to avert a deeper and more intractable economic recession.”