Bailout bill gaining ground in House

UPDATED:

WASHINGTON (AP) – An unprecedented government bailout of the financial industry is gaining ground in the House after a week of tumult on Wall Street and in Washington. Leaders in both political parties express optimism that the $700 billion measure will clear Congress by day’s end. President Bush is waiting to sign it.

The legislation cleared a key hurdle in the House on a vote of 223-205.

And with the economy showing fresh weakness, an Associated Press tally shows 16 lawmakers who sent an earlier bailout bill to unexpected defeat on Monday had changed their minds and would vote in favor of the revised legislation. Officials said changes made to the measure had sparked a far smaller number of defections among previous supporters.

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House leaders began deliberating on the $700 billion rescue package, and expected to vote on the bill Friday.

Thursday, President Bush worked with House leaders frantically to sway enough lawmakers to prevent a repeat of the Wall Street bailout defeat that sent markets tumbling earlier this week, cautiously predicting success of the $700 billion package.

Congressional leaders expressed quiet confidence they would have the votes to send the measure to President Bush for his signature by day’s end, four days after an earlier version was rejected.

“Our economy is not stable. Working families are suffering. Unemployment is over 10 percent in my district,” said Rep Hilda Solis. The California Democrat voted against the measure that failed on Monday, but this time, she said she was considering a switch.

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Late Thursday night, House Majority Leader Steny H. Hoyer said debate on the bill would begin Friday morning, a signal that leaders thought they had the votes to win passage of the measure.

“I will be pretty confident we have enough votes before I put [the bill] on the floor,” Mr. Hoyer said earlier in the day, insisting that inaction was not an option at a time when markets need a message of confidence.

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