CQ Politics
Published: 10-06-08
After four days of political and economic turmoil the House on Friday reversed itself and cleared a $700 billion financial bailout package that also extends dozens of expiring tax breaks for businesses and individuals.
The final vote was 263-171. President Bush was expected to sign the bill as soon as it reached his desk.
Leaders of both parties were certain by Friday morning that they had rounded up enough support to reverse the 205-228 vote on Sept. 29 that sank the first version of the financial rescue plan.
The continuing decline of the stock market a Main Street credit freeze increased job losses and a full-court press by lobbyists for business groups senior citizens the renewable energy industry and dozens of other interests helped turn dozens of “no” votes to “yes” between Monday and Friday.
“I think the biggest reason for the change here is the damages that started coming in . . . the reality of the economic damage” said Barney Frank D-Mass. chairman of the House Financial Services Committee and the congressional point man on the bailout package.
Republicans and Democrats alike repeatedly cited the increasing pain on Main Street as a key reason for switching their votes to “yes.”
On Monday Democrats supported the original bailout plan by 140-95 while Republicans voted against it by 65-133.
On Friday Democrats voted 172-63 in favor of the plan; Republicans still opposed it but much more narrowly 91-108.
Lawmakers in both parties had complained that the bare-bones proposal Treasury Secretary Henry M. Paulson Jr. first rushed to Capitol Hill on Sept. 20 amounted to a “blank check.”
They said the final bill was much improved providing tighter oversight a staged release of taxpayer funds the option to provide federal insurance for private sales of troubled assets and expanded Federal Deposit Insurance Corp. coverage of bank accounts.
The final bill also extended expiring tax provisions and required health insurers to provide the same kind of mental health coverage as their traditional medical benefits.
