House Approves Plan to Pump Up Economy, but Veto Looms

The House yesterday passed a plan by Democrats to pump $61 billion in government spending into the economy through public works projects, help for the jobless and money for states struggling with their Medicaid bills.

The 264 to 158 tally was largely symbolic since it came just hours after Senate Republicans blocked a companion measure. The White House promised a veto in any event, saying the legislation would not work and would cost too much.

The bills follow a bipartisan plan enacted this winter that shipped $600 to $1,200 tax rebate checks to most individuals and couples, and awarded tax breaks to businesses investing in new plants and equipment.

With the economy still sagging, Democrats have pressed for a follow-up plan that focused on more spending to extend unemployment benefits, boost food stamp payments and complete infrastructure projects such as roads, bridges, water and sewer projects and school repairs.

They got no interest from President Bush and his GOP allies in Congress.

Meanwhile, Senate leaders pressed for a vote on a $630 billion-plus spending bill funding the Pentagon, veterans medical care, homeland security programs and keeping the government's other Cabinet agencies running at current levels after the new budget year starts on Wednesday.

That measure also contains $25 billion in federal loans for U.S. automakers to help them retool factories and develop technologies. And it would give Republicans a long-sought victory -- the lifting of a quarter-century ban on oil drilling off the Atlantic and Pacific coasts.

Bush is expected to sign the bill.