WASHINGTON — President Barack Obama’s plea for more stimulus spending as insurance against a double-dip recession hit a roadblock in the Senate on Wednesday, the victim of election-year anxiety over huge federal deficits.
A dozen Democrats joined Republicans on a key 52-45 test vote rejecting an Obama-endorsed, $140 billion package of unemployment benefits, aid to states, business and family tax breaks and Medicare payments for doctors because it would swell the federal debt by $80 billion.
The swing toward frugality runs counter to the advice of economists who support the bill’s funding for additional jobless benefits and help to states to avoid layoffs of public-service jobs.
Federal Reserve Chairman Ben Bernanke warned last week that while lawmakers need a plan for tackling the nation’s long-term deficit crisis, the U.S. recovery is still fragile and it’s too early for large, immediate spending cuts.
“We’ve got to do more to build on the existing jobs momentum, and that’s what these targeted measures are about,” said White House economist Jared Bernstein.
Despite the loss, Democratic leaders predicted that a scaled- back version of the measure could pass, possibly as early as this week, after relatively minor revisions.
