Democrats to Unveil Jobs Package; Spending Fight Looms

By Naftali Bendavid & Greg Hitt
The Wall Street Journal
February 3, 2010

Senate Democrats are preparing to release a roughly $80 billion jobs program this week, but its prospects are uncertain in a political landscape where voters are angry about unemployment yet fuming about federal spending.

Senate leaders are proposing that part of that money come from funds originally allocated to the financial-sector bailout effort, the Troubled Asset Relief Program, or TARP. But top Democrats have decided to slice the jobs initiative into smaller chunks in the face of Republican attacks on big federal economic-stimulus programs.

Action on the jobs measures will be a warm-up for the larger debates over federal spending proposed in President Barack Obama's 2011 budget plan released Monday. Both sides agree that jobs are a national priority. With Republicans on the cusp of 41 votes in the Senate, Democrats need some GOP support to avoid procedural obstacles that could doom their effort. If Republicans do block their initiatives—particularly proposed tax breaks for businesses—Democrats are prepared to blame the minority party for seeking election-year political advantage at the expense of hard-pressed workers.

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