GOP senators block alternative stimulus plan

The Senate version would provide checks of $500-$1,000 to a broader group that includes 20 million elderly people, 250,000 disabled veterans and taxpayers making up to $150,000 for singles — or $300,000 for couples.

It would extend unemployment benefits for an additional 13 weeks for those whose benefits have run out, with 13 more weeks available in states with the highest jobless rates. The bill also includes $10 billion in tax-free mortgage revenue bonds to help homeowners refinance subprime loans.

Reid denied Republicans an opportunity to offer changes to the measure, provoking the filibuster. The calculus was that enough Republicans would relent in the face of political pressure to support unemployment insurance and heating aid to join Democrats and force the measure through.

GOP leader Mitch McConnell, R-Ky., said he wants to amend the measure to add rebates for disabled veterans and their widows and the elderly, and language — also included in the Democrats’ package — making clear that illegal immigrants can’t get rebate checks.

“We didn’t block the proposal,” McConnell said. “We just said there’s a better way to go and there’s an alternative.”

Reid rejected the offer — at least for the time being — but Republicans seemed confident he would eventually agree to comparable changes since the alternative would be to approve the House bill and leave retirees living on Social Security and disabled veterans without rebate checks.

The climactic vote came after an intense lobbying effort by Democrats to convert wavering Republicans, including those facing tough re-election fights. Their efforts got a boost from outside groups leaning on senators to back the package, including home builders, manufacturers and the powerful seniors lobby.

Republicans were under enormous pressure from their own leaders not to support the Democrats’ plan. Working to stem defections, GOP leaders assured their rank and file that they would have another chance to support adding senior citizens and disabled veterans to the aid plan even if they opposed the Democrats’ bill.

That wasn’t enough for Sen. Pete Domenici, R-N.M. who threw his support behind the measure.

“I’m hopeful that I have chosen the right path,” he said just before the vote. “I made my decision on what was best for New Mexico and what’s best for America.”

But other targets, such as Sen. John Sununu, R-N.H., stuck with McConnell.

Asked Tuesday whether the administration would accept adding rebates for the elderly and disabled veterans to the stimulus measure, Treasury Secretary Henry Paulson declined to say definitively, but he told the Finance Committee, “I’m sure we’ll be able to work something out and get something quickly done that’s broad-based.”

The dispute has slowed down the stimulus measure, but there’s no indication that it will delay rebate checks, which are expected to begin arriving in May. The rebates will be based on 2007 tax returns, which aren’t due until April 15.

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