Stalled stimulus bill triggers finger-pointing

By Dana Bash
CNN Washington Bureau

WASHINGTON (CNN) -- With Monday's declaration that the U.S. economy has been in a recession since March, Democrats and Republicans in Congress blamed each other for a stalled economic stimulus bill.

President Bush urged lawmakers Monday to finish work on an economic stimulus package by Christmas. But Senate Majority Leader Tom Daschle of South Dakota accused Republicans of delaying progress.

"We are at the table, ready to negotiate," he said in a written statement. "I call on our Republican colleagues to join us and begin discussions on a bipartisan plan for economic recovery and homeland security."

A spokesman for Senate Minority Leader Trent Lott of Mississippi shot back that the Democrats, not the GOP, are the ones dragging their feet.

"The White House, House and Senate Republicans are ready to negotiate on bipartisan economic growth that creates jobs and helps bring the economy out of a recession," said Lott spokesman Ron Bonjean. "Unfortunately, we've seen several partisan barriers that preclude us from succeeding."

The House has passed a GOP-backed, $100 billion stimulus package, which includes substantial tax cuts.

In the Senate, where the Democrats and Republicans have sharply different views on how to best stimulate the economy, neither side has been able to muster the 60 votes it takes to stop one side from blocking the other's bill.

Before the Thanksgiving recess, House and Senate Republican leaders agreed to sit down with Democrats and the White House to hammer out a compromise. The stalemate is over how, and what, to negotiate.

Senate Democrats want to spend an additional $15 billion on homeland security, which they say is tied to economy recovery, and they want this proposal to be part of the discussions.

Daschle also wants Sen. Robert Byrd, D-West Virginia, the author of the spending proposal, to participate in the talks.

Republicans have balked, saying federal spending for homeland security will not stimulate the economy and should not be part of the discussions.

Bush has told Byrd and other lawmakers involved in the appropriations process he will veto any legislation containing Byrd's proposal, saying the $40 billion already passed by Congress for disaster recovery and homeland security is enough for now.

Bush wants to wait until spring before approving any more spending, leaving time for additional needs to be reassessed.

Making his case that more investment into homeland security is needed, Daschle noted that since Democrats tried to bring their $73 billion economic recovery package to the Senate floor two weeks ago, "another anthrax-tainted letter has been found in the Senate mail and a fifth tragic death has been attributed to anthrax."

Daschle also said Homeland Security Director Tom Ridge "has indicated that new investments are needed to make America safer."

Democrats say privately they eventually will likely shift strategy for their homeland security spending package and drop demands that it be included in the economic stimulus bill.

Instead, they will try to attach extra dollars for infrastructure spending to a defense spending bill.

Before the Thanksgiving recess, a group of centrists in the Senate unveiled a compromise package for economic stimulus they hope could be the basis for bipartisan talks.