Stimulus package now below $800 billion

House and Senate negotiators have agreed to lower the economic stimulus bill to $789 billion in an attempt to reach a compromise between the bills that each side has approved in recent weeks, according to an Associated Press article.

Several Democratic officials said there is an informal deadline of Wednesday afternoon for at least tentative agreement on an overall bill, according to the article. That timeline coincides with a scheduled formal meeting of House and Senate negotiators.

Sen. Max Baucus, D-Mont., one of the negotiators said in the article that there was agreement to hold the bill to $789 billion, tens of billions below the cost of both the House and Senate bills that had cleared in recent days, and that 35 percent of the total would be in the form of tax cuts.

There also appears to be a compromise on President Barack Obama's administration's demand for school construction funds, which were eliminated from the Senate version of the bill. Sen. Tom Harkin, D-Iowa, told reporters that $6 billion would be set aside, and officials said it would be limited to repair and modernization work.

The House last month passed an $820 billion stimulus package. The $838 billion Senate bill that cleared on Tuesday necessitated both houses negotiate a compromise bill that would then need to be reintroduced into both houses for passage before making their way to President Obama's desk for his signature into law. He has said he would like to sign the stimulus package into law on Presidents Day, which is Monday, February 16.

Keep checking this blog as news develops on the stimulus package. For its impact on the AEC industry, check out The Obama Infrastructure Plan: A Supplement to PSMJ's 2009 AEC Firm U.S. Market Sector Forecast. Free with your order, you'll also receive PSMJ's Analysis of Economic Indicators for Markets Served by A/E Firms: 1st Quarter 2009. This report provides quantitative data on major market sectors AND the submarkets and regions that the North American A/E industry serves.

Ed