Congress faces historic challenges

By Thomas Ferraro and Richard Cowan

WASHINGTON (Reuters) - Democrats will pack greater clout when the new Congress convenes on Tuesday but they face enormous expectations from voters as they grapple with two wars, a financial crisis and record budget deficits.

Lawmakers begin work 14 days before Barack Obama is sworn in as president. When he takes the oath on January 20, Democrats will control the White House and Congress for the first time in 14 years.

Having rolled to victory in the November election with a promise of change after eight turbulent years under Republican President George W. Bush, Democrats need to produce results.

Their top priority will be approval of a mix of middle-class tax cuts and emergency spending they hope will prime an economy that has been shrinking for more than a year.

This package could end up costing around $775 billion.

The Democratic-led Senate plans to move quickly to confirm Obama's Cabinet nominees, who include Sen. Hillary Clinton of New York as secretary of state and New York Federal Reserve chief Timothy Geithner as secretary of the treasury.

Other Democratic promises include: withdrawing U.S. troops from Iraq and redeploying many of them in Afghanistan; expanding health care; bolstering regulation of the financial industry and developing alternative energy sources while curbing pollution that contributes to global warming.

"The 111th Congress will hit the ground running in January with an ambitious schedule," House of Representatives Speaker Nancy Pelosi wrote in an open letter to Democratic colleagues.

'HISTORIC GAP'

"Congress will respond in time. But Obama needs to lower expectations," said Paul Light of New York University's Center for the Study of Congress.

"There is a historic gap between promises made and promises fulfilled. Converting promises into reality is a difficult process," Light said, noting major legislation must wind through a maze of committees.

Expectations are high that Congress will move fast, maybe by the end of January, on the economic stimulus package. But some Republicans are threatening to slow it down, citing concerns about wasteful spending.

Senate Republican Leader Mitch McConnell warned there should be no rush to judgment on what he predicted could be "the largest spending bill in history." McConnell will use what leverage he has to try to win concessions that could allow the stimulus bill to pass with bipartisan support.

Obama plans to meet in coming days with congressional leaders of both parties to discuss his push for a stimulus package.

"I am optimistic that if we come together to seek solutions that advance not the interests of any party, or the agenda of any one group, but the aspirations of all Americans, then we will meet the challenges of our time," he said in his party's weekly radio address.