Democrats Discuss a Post-Election Stimulus Bill

WASHINGTON -- The House Democratic leadership is crafting new legislation to stimulate the shaky U.S. economy, and could call lawmakers back to the nation's capital shortly after the Nov. 4 election to take up the $150 billion measure.

No final decisions have been made on details of the package or changes to the congressional schedule. Speaker Nancy Pelosi (D., Calif.) and other Democratic leaders have discussed reconvening the House the week of Nov. 17 to act on a package that could include new government spending in areas including road and bridge construction, and possibly a tax rebate, congressional aides said.

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Speaker Nancy Pelosi and other Democratic leaders are considering reconvening the House the week of Nov. 17. ' We have some harsh decisions to make. Some of them can ' t wait until January,' she said this week.

Democratic congressional leaders and the White House worked closely in September to shepherd through Capitol Hill a $700 billion plan to attempt to stabilize U.S. financial markets. The camps also worked together at the beginning of the year to enact a $168 billion stimulus package that provided tax rebates to millions of Americans, a measure the White House says shored up growth through much of the year.

But the Democratic leadership in Congress and the White House are at odds over whether a second stimulus effort built around spending is needed to boost the economy. Democrats argue a one-time jolt of federal dollars would create jobs and shore up consumer spending. President George W. Bush contends spending-focused efforts are a waste of taxpayer dollars.

The $150 billion package under discussion among Democratic leaders would more than double an economic-stimulus bill approved by the House in late September. That measure stalled in the Senate before Congress adjourned, amid opposition from the White House and congressional Republicans.

The new package would include spending on infrastructure, assistance to cash-strapped states, food aid for low-income families and expanded benefits to unemployed workers, aides said. Democrats are also considering folding a tax cut into the package, perhaps modeled on the rebate enacted at the beginning of the year at the White House's urging.

Democratic leaders had hoped the $700 billion rescue package would calm financial markets and forestall a downturn in the U.S. economy. But market turmoil has only deepened since congressional leaders sent lawmakers home to campaign for re-election.

In recent events around the country, Mrs. Pelosi has warned members of the House they should be ready to return to Washington after the election. "We have some harsh decisions to make. Some of them can't wait until January," she said earlier this week in Denver. "What we can't wait for is a stimulus package."

On Monday, Mrs. Pelosi will host an "economic forum" in her Capitol Hill office, bringing a group of economists together with the House Democratic leadership to discuss steps to strengthen the economy.

Even before the House leadership began discussions about a lame-duck session, the Senate was planning to reconvene the week of Nov. 17. The Senate had previously been expected to act on a narrow jobless-benefits bill that week. But Senate Majority Leader Harry Reid (D., Nev.) now hopes to push a broader stimulus package, if the House comes back to town and takes one up.

"Recent developments only reinforce the need for additional action to reinvigorate the economy," said Reid spokesman Jim Manley.

Write to Greg Hitt at greg.hitt@wsj.com