Democrats' Push for Full-Scale Stimulus Stalled Until Jan. 20

"The President's proposal would unwisely divert money urgently needed for modernization of the U.S. auto industry, so that it can be competitive in the future, making energy-efficient vehicles and meeting our national security imperative of energy independence," House Speaker Nancy Pelosi said.

Pelosi (D-Calif.) told her colleagues to assemble Wednesday for consideration of the smaller stimulus package, but even that session is contingent upon the Senate approving legislation for the auto industry.

Any bailout of the Detroit automakers would include provisions to limit executive compensation and provide the Treasury with equity stakes to ensure the government would be repaid in full if the participating companies thrive financially in the years ahead.

If there is no bipartisan agreement by Monday, Reid is expected to set up a key test vote for Wednesday. He would need 60 votes to head off a GOP filibuster.

With Obama resigning on Sunday, Reid likely would need all 50 members of the Democratic caucus and at least 10 Republicans to pass the legislation.

Capitol Hill aides hope that, should that legislation fail, a stand-alone version of the unemployment benefits could pass. The House already has approved that measure and there is little opposition to it among Senate Republicans.

A growing number of Republicans -- upset that the TARP program has resulted in the largest intrusion of the federal government into the private marketplace since the Great Depression -- are opposed to an auto bailout or the inclusion of other industries in the rescue plan originally designed for the financial services sector.

"When is enough enough?" said Sen. John Cornyn (Tex.), who is slated to take over the GOP's campaign committee next year. " . . . With the very first vote after the election, Democratic leaders in Congress want to pass a $25 billion handout to Detroit with no promises of reform, accountability or transparency by the automakers and their union base."

"You've got to let them fail," Gov. Mark Sanford (R-S.C.), the incoming chairman of the Republican Governors Association, said at the group's annual meeting in Florida. "They made some bad bets, and there ought to be a marketplace consequence."

The proposal to include the Detroit automakers in the $700 billion bailout has split the industry, with foreign carmakers on the sidelines while U.S. companies work with manufacturing and labor allies to support the measure. A growing number of Japanese, German and Korean autos are built and sold in Southern states from Texas to South Carolina, nicknamed "Detroit South" by industry insiders.

The U.S. Chamber of Commerce, meanwhile, has urged lawmakers to support the bridge loan program, saying that the number of car loans has fallen by 50 percent this year and threatens a sector that accounts for 5 million direct and indirect jobs.

Staff writers Kendra Marr and Lori Montgomery contributed to this report.