Post-inaugural Congress to revisit fiscal crisis

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By Sean Lengell and S.A. Miller

Congress will return to work less than 24 hours after the historic inauguration of Barack Obama, tackling a busy schedule Wednesday that includes spending measures totaling more than $1 trillion and a confirmation hearing on a controversial nomination to the president's Cabinet.

The economic crisis will immediately take center stage: The House is set to vote on whether to release the second half of the $700 billion Wall Street bailout and the House Appropriations Committee marks up the $825 billion stimulus package.

The authorization to spend the second $350 billion installment of the unpopular Wall Street bailout must overcome opposition from lawmakers frustrated that the Bush administration did not spend the money as advertised. The Treasury bought equity stakes in financial companies instead of purchasing bad mortgages, prompting top House Democrats to demand that some of the money go to helping homeowners avoid foreclosure.

The Obama administration has pledged to do just that, a move helped win the Senate's support last week for releasing the funds. The bill passed the Senate in a 52-42 vote, a marked erosion of support since the original bailout bill sailed through the chamber in October in a 74-25 vote.

The House may want more than assurances.

"Millions of Americans have lost their jobs or face the prospect of foreclosure, and it is past time that we helped these families bolster their balance sheets," said House Speaker Nancy Pelosi, California Democrat.

With the worsening recession as a backdrop, the House also begins the public wrangling over the $825 billion spending and tax package to jump-start the economy.

The Appropriations Committee will put the finishing touches on the $550 billion spending piece of the American Recovery and Reinvestment Bill that includes items ranging from $10 billion for scientific research to $30 billion for highway construction to $32 billion to modernize the nation's energy grid.

But this massive spending and tax bill, which is nearly equal to the appropriations bill that annually funds the entire federal government, may be only a down payment for what Congress eventually doles out to boost the economy.

"This product may in fact undershoot because the economy is spiraling downward at a much faster rate than anyone thought possible," said House Appropriations Committee Chairman David R. Obey, Wisconsin Democrat. "It could get much worse very, very, very, very fast, and I would not be surprised to see us having to go even further for some of these programs."