Certain Firms, Industries Got Last-Minute Gifts in Stimulus

[Crooked Moon]

Source: Washington Post

In rushing to pull together a landmark economic stimulus package last week, Democratic lawmakers and the White House added billions in new spending and tax breaks that will benefit a handful of specific companies and industries.

The final bill, approved by Congress on Friday, includes $8 billion in unplanned spending specifically requested by President Obama for regional high-speed rail projects, according to administration officials. New language sought by General Motors will save the beleaguered Detroit automaker from paying up to $10 billion in taxes related to its acceptance of federal bailout funds.

<snip>

The original House stimulus package, drafted with the guidance of the White House, had less than $10 billion for mass-transit systems -- a third as much as for roads and highways -- and about $1 billion for Amtrak upkeep, with no money for new high-speed rail. Pressed on this, White House advisers said major rail projects would take too long to get underway to justify them as short-term stimulus.

Then the $8 billion line materialized in conference committee negotiations. White House Chief of Staff Rahm Emanuel told reporters Friday that the item was added at the president's request because it met his criteria for stimulus spending. Emanuel did not explain why the item would now meet those criteria when it did not before.

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2009/02/14/AR2009021401724_pf.html