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TheWeekInCongress.com February 11, 2009 - House and Senate conferees agreed to differences in HR 1, the economic recovery legislation. The House has not yet voted to accept the amended legislation.

HR 1, as passed by the House would add $816 to $819 billion to the deficit. The Senate began consideration on a substitute promising to push the deficit amount to $890 billion and possibly beyond before an alternative package brought the price down to $789 billion. The alternative was offered by Senators Ben Nelson (D-NE) and Susan Collins (R-ME).

The alternative was seen as a compromise necessary to gain three Republican votes that would assure the bill did not fall to filibuster action in the Senate. Filibusters, an effort to prolong debate indefinitely, can be stopped with 60 votes.

The Senate alternative increased tax cuts in the bill and reduced some spending while increasing it in other areas.

The original bill aimed generally at spending and tax relief. The current bill would provide $507 billion in spending and $282 billion in tax relief. The original bill provided $500 in tax credits to about 98% of individual taxpayers and $1000 to couples with incomes to $75,000 and $150,000 respectively. The compromise reduces those breaks to $400 and $800. The Senate added the provision of a $300 rebate to seniors, disabled veterans and disabled Social Security recipients. The compromise reduced that amount to $250.

While the Senate saw less importance in some of the House-passed spending for school construction, removing that provision completely, the compromise gave States some leeway in spending aid specifically for States for that purpose.

The Senate voted to increase health insurance to the unemployed from $13 billion proposed by the House to $23 billion but the final bill reduced the amount closer to the House amount.

Senate amendments allowing tax write-offs for the purchase of American-made automobiles and home purchases were removed from the final bill, but the final bill allows a $7,500 tax credit for the purchase of plug-in hybrid cars. Also remaining is the removal of repayment for first time homebuyers who bought low and saw a rapid profit on their home investment. Earlier law required them to return some of that profit to the federal government.

The child tax credit is expanded as is the earned income tax credit for families with three or more children. Businesses continue to be allowed tax credits for investment in business expansion, the operating loss carryback tax deduction, and a break in taxes for investors who invest in small businesses and hold the stock for more than five years.

Remaining is the $70 billion Alternative Minimum Tax provision absent from the House bill but added by the Senate. The AMT is a 1969 law aimed at making high income earners pay some taxes despite taking advantage of tax loopholes. Because the tax was not indexed to inflation it has threatened to reach into the lower income levels.

For the unemployed the bill extends unemployment insurance coverage and increases payment by $25 per week. The 33 week extension of unemployment benefits scheduled to phase out in March is continued through December 2009. The tax on some unemployment benefits are temporarily removed.

The $7 billion to expand broadband Internet services to underserved areas was trimmed by the Senate but remained in the Conference report along with a $2 billion increase to spend $19 billion to implement a system of interconnected computer records of patient' healthcare information.

Aid to States anxious to balance their budgets began in the House bill at $79 billion but was reduced by the Senate by $40 billion. The compromise package lowered the $79 billion by $25 billion. $40 billion of the funds allotted to States can be spent for "preventing cutbacks, preventing layoffs, school modernization, or other purposes". Also in education the basic Pell Grant is raised to $5,350 in 2009 and $5,550 by 2010.

Spending for transportation projects, considered to be an area where job increases would most quickly increase due to the spending, totals approximately $110 billion for roads, bridges, rail transit

The House unanimously passed a resolution to send the bill to conference with the caveat that the final bill be made public for 48 hours before vote on passage.

Any further action will be updated here when information becomes available.

The differences between the House-passed bill and the Nelson/Collins amendment 570, can be read here

Highlights of the Conference Report to HR 1 provided by the Majority.

HR 1 - House Version with votes

Senate amendments to HR 1 and votes.

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Bills Seek Water Conservation and Efficient Use; Offer Funds for Ways to Reuse Water Produced by Energy Drilling; Expand and Define Programs to Protect Elderly from Abuse and Exploitation.

Water Efficient Products and Practices To Save 3 Trillion gallons

EPA program would promote water-savings technologies and processes.

HR 631

"Produced" Water to be Studied for Reuse

Energy Department Grants would be available for research, development, and demonstration of technologies for environmentally sustainable uses of produced water for agricultural, irrigation, municipal and industrial uses.

HR 469

Programs to Protect the Elderly Gain Increased Funding

The US Attorney General in cooperation with the Secretary of Health and Human Services is directed to study the issue of abuse of elderly persons, develop a plan to prevent it and combat it and implement the plan.

HR 448

The House and Senate will convene during the week of February 23rd and will attend the President's address to Congress on Tuesday however no legislative business is planned.