Stimulus Bill With Rebates for Seniors, Vets Is Blocked in Senate

WASHINGTON, Thursday, Feb. 7—About 20 million older Americans who primarily depend on Social Security now find that that their potential $500 rebate check is in jeopardy as the economic stimulus plan makes its way through Congress.

Senate Democrats failed Wednesday night in their attempt to add $44 billion to the stimulus plan to help the elderly, disabled vets, the unemployed and business. The Senate vote was 58-41 to end debate on the measure and bring it to a vote, just short of the 60 votes necessary. The vote was a dramatic one politically, as Democratic presidential candidates Sens. Hillary Clinton of New York and Barack Obama of Illinois returned to Washington from the campaign trail to vote aye. Republican front-runner John McCain of Arizona was a no-show.

"There was a chance on the table to help low-income seniors and disabled veterans and Americans looking for work, and the Senate frankly blew it tonight," Finance Committee Chairman Max Baucus, D-Mont., said in a statement after the vote.

While not taking on the $500 rebates to seniors directly, Republican lawmakers objected to add-ons such as a $14.5 billion unemployment benefits extension for those whose payments have run out, $1 billion in heating aid for the poor and tax breaks for renewable energy producers and coal companies.

The House has approved a $146 billion plan, negotiated with President Bush, which provides rebates of $600 for individuals earning at least $3,000 ($1,200 rebates for couples). But that plan did not include provisions for low-income Social Security recipients.

The Senate's plan drew lower-income seniors into the equation. Baucus proposed giving a $500 rebate to individuals with at least a $3,000 income, even if that income comes from Social Security. Couples would get $1,000.

"We're disappointed by tonight's vote and we expect the Senate to fix this," David Sloane, AARP's director of government relations and advocacy, responded Wednesday night. "AARP has been vocal in our position that any stimulus package should include a rebate for the approximately 20 million Americans who depend primarily on Social Security."

Sloane cited an AARP poll released Tuesday that said 90 percent of likely voters believe that including older Americans in the stimulus bill is important. AARP has also reported that older Americans spend 92 percent of their income—a greater share of income than all other adults.

The House economic stimulus plan was unveiled first, prompting a flood of telephone calls to Congress and AARP from lower-income seniors who found that the initial stimulus offer had nothing in it for them.

Bush warned Congress in his State of the Union speech about including too much in the stimulus package, which, he said, would prompt his veto. Congressional leaders hope to send him a measure by mid-February.