The Democratic-led U.S. Senate will try again on Friday to pass a $937 billion stimulus package aimed at boosting the battered economy as some of the worst unemployment data in decades boosted political pressure for a deal.
Moderate lawmakers from both parties were due to resume negotiations seeking to find compromises on stimulus spending that some have criticized as excessive.
The country's economic turmoil was spotlighted anew as Labor Department figures showed employers slashing 598,000 jobs in January, the deepest dive in 34 years. The unemployment rate jumped to 7.6 percent. Both were worse than had been forecast by Wall Street economists.
A group of about 18 Democrats and Republicans worked late on Thursday to slice about $107 billion from the plan.
Democratic President Barack Obama wants the final bill on his desk by Feb. 16 and has stressed the urgency of pushing it through to help reverse the downward spiral of an economy that has been in recession since December 2007.
Harry Reid, leader of the Democrats in the Senate, said he was "cautiously optimistic" about getting the work done on Friday, but said that if progress stalled he would file a motion to set up a showdown procedural vote for Sunday.
The January employment data could push the senators to quicken their pace on the legislation.
Reid said on Thursday he hoped to be able to pass the bill within hours, but later abruptly halted debate.
Republicans have blasted the package as doing little to create jobs. Democrats so far have fought off most Republican attempts to add tax cuts and slash spending in the bill.
Democrats, who control the Senate with 58 seats, would need 60 votes to bypass potential Republican procedural roadblocks. So they need at least two Republicans backing them.
BALANCING ACT
The package was originally designed to be worth about $775 billion, with 40 percent going toward tax cuts, but it has grown with the addition of incentives to boost flagging home and automobile sales and increase medical research funding.
Even as moderate Democrats and Republicans worked to clinch a deal, Senator Mary Landrieu, a Louisiana Democrat, said they have to "do it in a way that we don't lose the entire Democratic caucus."
Obama, who took office on Jan. 20, succeeding Republican President George W. Bush and promising to work across party lines in Washington, has stepped up pressure on Congress to complete the stimulus measure.
But the Democratic-led House of Representatives passed its $819 billion version of the stimulus measure last week without a single Republican vote.
Differences between the House and Senate legislation would have to be worked out before the bill goes to Obama.
Obama has engaged in personal lobbying to pick up some Republican votes, but he has refused to bend on adding large tax cuts.
"We can't embrace the losing formula that says only tax cuts will work for every problem we face," he told House Democrats on Thursday at a retreat in Williamsburg, Virginia.
