By Edward Epstein Congressional Quarterly Staff
Published: 05-01-08
House Majority Leader Steny H. Hoyer said Wednesday it is unlikely that a second economic stimulus package could be completed before the Memorial Day break.
The Maryland Democrat said talks continue among Democratic leaders about elements of a new stimulus bill such as more money for food stamps extended unemployment benefits and infrastructure funding.
But when asked if the legislation could be completed before the break Hoyer said “Frankly the honest answer is no.”
Tax rebates that were the centerpiece of the first stimulus measure (PL 110-185) just started flowing this week into the bank accounts of millions of Americans. Congress cleared that package Feb. 7 with unusual speed and bipartisanship hoping that consumers would spend the money and help revive a flagging economy. Consumer spending accounts for roughly 70 percent of gross domestic product (GDP).
The Commerce Department reported Wednesday that the gross domestic product grew at a 0.6 percent annual rate in the first quarter matching the fourth quarter’s advance. That was somewhat better than analysts expected but consumer spending was weak growing at a 1 percent rate compared with 2.3 percent in the fourth quarter.
The White House and congressional Republicans have resisted moving a second stimulus package until they assess the impact of the rebates which offer a minimum of $300 per person ($600 per couple) to most households and more for families with dependent children.
A top White House official Wednesday underlined the administration’s belief that a second stimulus bill is not needed any time soon.
“We don’t think the time is right in general to pass more legislation on that and some of the ideas we’ve heard I’m not sure we’d ever think are a good idea — that would not really be relevant to promoting economic growth and just simply sound like more government spending” said Stephen S. McMillin deputy director of the White House Office of Management and Budget.
McMillin said he wasn’t aware of any detailed discussions between House Speaker Nancy Pelosi D-Calif. and administration officials on another stimulus package though Pelosi has repeatedly called for such legislation.
“The only conversations I even hear about basically sound like . . . ‘Hey I want to talk about stimulus two we ought to do stimulus two’” he said.
May Agenda
Hoyer outlined plans to consider at least a half-dozen major pieces of legislation before the break starting next week with a supplemental fiscal 2008 spending bill for the wars in Iraq and Afghanistan that Democrats plan to use as a vehicle for domestic initiatives.
Also on tap next week he said will be housing-related legislation designed to ease the mortgage crisis.
Hoyer told reporters he hopes the farm bill (HR 2419) conference report will be ready by next week. Negotiators are close to a final deal on that measure but are still working to satisfy White House concerns. Also on Hoyer’s to-do list are conference reports on legislation to strengthen the Consumer Product Safety Commission (HR 4040 S 2663) and overhaul the Higher Education Act (HR 4137 S 1642).
But neither of those agreements is in sight.
The House as soon as Wednesday was expected to clear a 30-day extension of the current Higher Education Act and work on a compromise product safety measure is just beginning. Another conference report the leadership hopes to move would adopt the Democrats’ fiscal 2009 budget resolution (H Con Res 312 S Con Res 70).
Hoyer also wants to move the fiscal 2009 defense authorization bill which awaits House Armed Service Committee markups and an intelligence authorization bill.
Hoyer also repeated his optimism that a deal can be reached on overhauling the Foreign Intelligence Surveillance Act (FISA PL 95-511).
The House has thus far backed a bill (HR 3773) that would impose new constraints on electronic surveillance authority and would not grant retroactive legal immunity to telecommunications companies being sued for their alleged cooperation with the administration’s warrantless surveillance program.
The Senate version of a FISA overhaul would give retroactive legal immunity to telecommunications companies.
Hoyer rejected GOP criticism that the Democratic-controlled Congress has accomplished little so far this year. “I reject the Republican premise that we’re not doing a lot of work. These next three weeks will be very full’’ Hoyer said.
“We’ll leave by Memorial Day and we’ll say at least on the House side we did a lot of work’’ he added.
