Obama's $787bn stimulus package clears House vote

President scores his first major legislative victory

(EPA)

In a major victory for Barack Obama, the US House of Representatives passed his $787bn (£550bn) economic stimulus plan designed to avert a catastrophic collapse. By flooding the economy with half a trillion dollars of federal money, Mr Obama hopes to pump-prime the jobs market and get idle building sites back to work again.

Despite Mr Obama's appeals for bipartisanship, no Republicans voted for the 1,000-plus page bill. Several opposition members were expected to back the bill in the Senate however.

Its passage was expected to hand Mr Obama his first a major legislative victory in the opening stages of his presidency. The House of Representatives passed the bill by a vote of246-183. Democrats said the bill would save middle-class Americans from going under and millions from losing their houses.

Republicans complained it will result in more wasteful government spending. A tight Senate vote was expected with 60 votes needed to pass the measure. Every vote was important and Democrats were disappointed that Senator Edward Kennedy, who is fighting brain cancer – a key supporter of Mr Obama – could not vote as he continued his treatment and physical rehabilitation. Three Republican Senators from the North East were expected to back the bill however and Mr Obama is expected to quickly sign it into law.

"After all the debate, this legislation can be summed up in one word: Jobs," said Nancy Pelosi the leader of the Democratic majority in the house. "The American people need action and they need action now." Mr Obama has promised that the extraordinary package will either create or save 3.5 million jobs.

The US economy has been in free-fall with more since December 2007. Home foreclosures are surging, consumer spending has frozen and credit is nearly impossible to find. Still more job cuts are expected in the weeks and months ahead and the effects of the stimulus package may not be felt for up to 10 months. John A. Boehner the Republican leader in the House said that a bill about "jobs, jobs, jobs" had been turned into one about "spending, spending, spending."

Jerry Lewis a California Republican said not enough would be done to rebuild roads and other public works. "Facts are stubborn things," Mr Lewis said describing a debt burden that will stretch "well, well into the future".