Congress set for fiery post-election session

By Thomas Ferraro

WASHINGTON (Reuters) - Expect plenty of fireworks when the U.S. Congress meets next week for a post-election session focused largely on the ailing U.S. economy.

With Barack Obama preparing to become the 44th U.S. president on January 20, lawmakers will take another crack at providing fiscal relief to Americans and the U.S. auto industry, and elect leaders for the new Congress set to convene on January 6 with Obama's Democrats in stronger control.

Lawmakers also will move to expel Republican Ted Stevens from the Senate if a protracted ballot count shows that Alaska voters returned the 84-year-old senator to Washington after his conviction for corruption last month.

In addition, Democrats also will decide what, if any, punishment to impose on Connecticut Sen. Joe Lieberman, a Democrat turned independent, for actively campaigning for Republican John McCain for president ahead of the November 4 election.

Obama has privately opposed ousting Lieberman from the Senate Democratic conference, saying that would break Obama's vow to set aside partisanship, a party source said.

It is unclear what Lieberman would do if stripped of a committee chairmanship, as threatened. But as one Democratic Party aide put it, "He's keeping all his options open," including, apparently, bolting to the Republican Party.

CARMAKERS ON THE LINE

On the economic front, Democrats are working to direct $25 billion in loans to Detroit automakers, who say the action is needed to survive their worst-ever fiscal downturn.

Support, however, is uncertain, especially from Senate Republicans reluctant to legislate yet more money for business rescues. They also are not convinced General Motors Corp, Chrysler LLC and Ford Motor Co are viable with overall industry sales plunging and consumers moving away from American-made gas guzzlers.

Bailout foes suggest Congress amend a separate $25 billion loan program approved in September for automakers to retool factories necessary to produce electric cars and other more fuel-efficient products.

At the same time, Democrats are clamoring to inject at least tens of billions of dollars into the economy to help ease the worst fiscal crisis since The Great Depression.

But with outgoing President George W. Bush and fellow Republicans wanting to give a new $700 billion rescue package for the financial industry more time to kick in, Obama may have to wait until he takes office to sign any additional economic stimulus into law.

Senate leaders swapped open letters on Friday in advance of next week's showdown.

"The adoption of a robust recovery package should be the top priority," wrote Senate Democratic Leader Harry Reid of Nevada, urging Republicans to reconsider apparent plans to block such a measure.

Senate Republican Leader Mitch McConnell of Kentucky fired back by complaining that Reid had yet to provide details. "Taxpayers deserve to know if this bailout would increase the national debt and raise their taxes," McConnell wrote.