Pelosi sees stimulus of about $600 billion

[December 16, 2008]  WASHINGTON (AP) -- House Speaker Nancy Pelosi said Monday that Democrats are preparing a massive economic recovery bill in the range of $600 billion, blending immediate steps to counter the slumping economy with longer term federal spending on infrastructure like energy efficiency projects.

The California Democrat told reporters that economist Mark Zandi had recommended to Democrats an economic stimulus in that range -- including $400 billion in infrastructure and $200 billion for tax cuts.

"I think that we will find some level of consensus in that range," Pelosi said.

Pelosi said Capitol Hill Democrats are already "hard at work" writing a stimulus measure to pass next month. It's expected to combine tools like tax cuts and help to states suffering from big budget deficits with infrastructure projects like road and bridge repairs.

Items like tax cuts, aid to states and an extension of unemployment benefits for the long-term jobless can inject money into the economy fairly quickly. Most infrastructure spending takes longer.

Pelosi also touted other projects like investments in new energy technologies and energy-efficient buildings, expanding broadband Internet to underserved areas, and investments in information technolgy for the U.S. health care system.

"It will be a forward-looking -- an economic recovery package for the future," Pelosi said. "This is not a 1930s public works project."

Pelosi wouldn't give concrete figures and noted some lawmakers want even more. She said she has to balance those desires with concerns about the budget deficit.

In February, Congress pased an economic stimulus bill costing $168 billion for $600 tax rebates for most individual taxpayers and tax breaks for businesses. Pelosi largely bowed to President George W. Bush's insistence to keep the measure free of spending.

The upcoming effort would dwarf the earlier measure as well as a $61 billion stimulus bill the House passed just before adjourning for the elections. That measure died after a Bush veto threat and GOP opposition in the Senate.

Democratic estimates for a stimulus bill have risen as the state of the economy has worsened.

[Associated Press]

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