WASHINGTON — Momentum is building for a fresh dose of economic stimulants to boost the country out of the doldrums, perhaps by putting more money in Americans' pockets.
The White House said Monday that President Bush is open to some sort of action, after Federal Reserve Chairman Ben Bernanke warned that the slump could drag on without the extra support.
The national economy, already wobbling, has been rocked by a trio of hard punches from the housing, credit and financial crises. With a recession widely seen as inevitable, if not already under way, the focus in Washington has shifted to the questions of how bad, how long and how to limit the pain.
There is increasing talk of a post-election special session calling Congress back to the Capitol. But urgency varies greatly according to whom you talk to – and when.
"We're continuing to have conversations with members of Congress, and we're open to ideas that they would put forward ... that would stimulate the economy and help us pull out of this downturn faster," White House press secretary Dana Perino said around noon Monday, shortly after Bernanke endorsed the need for a fresh and "significant" round of government action.
A couple of hours later, Bush seconded Perino's remarks, but he also said in a more optimistic tone: "I have heard that people's attitudes are beginning to change from a period of intense concerns – I would call it near panic – to being more relaxed."
He commented after a closed meeting with business leaders in Alexandria, La.
If congressional leaders and Bush were to hash out an acceptable package, it would require a special session after the Nov. 4 election. If an agreement can't be worked out, the effort probably would be taken up by the next Congress and the next president.
House Speaker Nancy Pelosi of California and fellow congressional Democrats are pushing a package that could cost as much as $150 billion.
Some economists, however, have advised them in recent days that to have a real impact, the total would have to be far larger, as much as $300 billion.
As part of that package, Democrats want to resurrect a $61 billion House-passed measure that included about $37 billion in public works spending, $6 billion to extend jobless benefits, $15 billion to help states pay their Medicaid bills and $3 billion in food stamp assistance for the poor.
The Democrats also are considering a second round of tax rebates to follow the $600 to $1,200 checks most individuals and couples got earlier this year.
Members of Maine's congressional delegation did not hesitate when asked Monday whether they would support a second economic recovery package: All four said they back such a move.
U.S. Sen. Susan Collins, R-Maine, has said in the past that any proposal to stimulate the economy ought to help states and communities fund infrastructure projects.
She has introduced an Economic Recovery Act bill that calls for $50 billion in new transportation bonds for roads, bridges, transit, rail and waterways – a provision Collins would push for in a second stimulus plan.
"Senator Collins believes that Congress must continue to aggressively address the economic crisis to help those families, individuals and small businesses that have become innocent victims of the economic downturn," Jen Burita, Collins' spokeswoman, said in a prepared statement.
Her Democratic opponent in the Nov. 4 election, U.S. Rep. Tom Allen, D-Maine, has already said he will support legislation that creates a $2,000 refundable tax credit for couples filing jointly to help pay for heating oil. Allen wants the credit to be part of any recovery plan.
"More than 600,000 people have lost their jobs since the beginning of the year, and recent indicators suggest we are already in the midst of a serious recession," Allen said in a prepared statement.
John Genzel, spokesman...
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