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SCENARIOS: Possible changes to win passage of stimulus bill
(Reuters) - President Barack Obama's fellow Democrats in the Senate must revise their $900 billion economic stimulus package to win needed Republican support and ease some Democratic concerns.
Here are some possible revisions that might help drum up enough votes to win final passage of a stimulus bill by both the House of Representatives and the Senate that Obama could sign into law by the end of next week, his target date:
* Easing if not eliminating proposed "buy American" restrictions requiring iron, steel and manufactured goods used in stimulus projects -- such as the construction of roads and bridges and schools -- be produced in the United States. Critics fear the restrictions could trigger a trade war.
* Trimming the price tag, which has tripled to more than $900 billion since early estimates just a few months ago. Lawmakers in both parties have called for reductions, with some Republicans suggesting it be cut back by as much as half, though cuts that deep are unlikely.
* Devoting more of the package to tax cuts. Currently, less than a third would go to tax relief. Obama had initially proposed 40 percent, but figure was reduced as Democrats offered additional spending projects.
* Cutting spending on projects that critics say would provide little, if any, stimulative impact on the economy or jobs. They includes ones to provide $335 million to prevent sexually transmitted diseases, $25 million to rehabilitate trails for all-terrain vehicles and $524 million for a State Department program that critics say would create just 388 jobs in the U.S. -- at a price of $1.35 million per job.
* Increasing the effort to stem the record home mortgage foreclosures, which have been largely to blame for the economic downturn. Republicans suggest measures to push mortgage rates as low as 4 percent, arguing this could entice buyers into the moribund market and lower borrowing cost for existing homeowners.
(Writing by Thomas Ferraro, with additional reporting by Susan Cornwell and Jeremy Pelofsky; editing by David Wiessler)
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