By Jeremy Pelofsky and Richard Cowan
WASHINGTON (Reuters) - The U.S. House of Representatives approved a $787 billion package of spending and tax cuts on Friday aimed at rescuing the struggling economy.
Democrats wielded their majority to push the compromise package through the House by a vote of 246-183. But no Republicans backed it, dashing President Barack Obama's quest for bipartisan support that he had hoped would break the gridlock that has gripped Congress for years.
The U.S. Senate was expected to vote later Friday.
The final plan is split into 36 percent for tax cuts and 64 percent in spending and other provisions. Obama had called for a 40/60 split in his effort to jolt the economy, which he has warned could spiral into an even deeper recession without rapid government help.
House Majority Leader Steny Hoyer chastised Republicans, saying they were sticking to the same economic precepts that had proved a failure during the eight-year tenure of Republican President George W. Bush.
"Millions and millions of Americans will receive a tax cut" under the measure, he said, adding that "millions and millions of people ... who have lost their jobs and can't put food on the tables of their families will be helped by this bill."
Representative Mike Pence, a member of the Republican leadership, countered during the closing floor debate, "The only thing the Democrats' stimulus bill will do is stimulate more government and more debt."
"The American people are asking, 'what's 13 bucks a week going to do to get this economy moving again for the average American?'" he said, referring to extra money that will come in paychecks because of reduced taxes withheld by employers.
TAXES VS SPENDING
Republicans had pressed for larger tax cuts instead of big spending projects but most of their efforts to change the bill failed.
The president has urged the Democratic-controlled Congress to pass the stimulus before the end of the coming holiday weekend so he can sign it into law. His goal is to create or save 3.5 million jobs in an economy that has seen massive job losses since the recession began in December 2007.
Obama pressed his case for the stimulus package earlier when he met corporate chief executives at the White House.
"It's a plan that will ignite spending by businesses and consumers, make the investments necessary for lasting economic growth and prosperity," Obama said, adding that 90 percent of jobs saved and created would be in the private sector.
The Senate was expected to follow with its own vote, which, if approved as expected, would send the bill Obama's desk.
All Republicans in the House opposed the stimulus measure, saying it expanded government spending too much and did not include enough tax cuts to boost the ailing economy.
The final package includes about $500 billion in spending and money for social programs like the Medicaid health insurance program for the poor. It has approximately $287 billion in tax cuts that include small tax incentives to spur home and automobile sales as well as business tax deductions.
The White House has said it would take about a month for the money to begin flowing.
Democrats trimmed down the package from as much as $937 billion to secure the votes of three Republicans that were needed to overcome procedural hurdles in the Senate.
(Additional reporting by Caren Bohan, Donna Smith and Deborah Charles; Editing by Doina Chiacu)
