By Donna Smith and Richard Cowan
The Senate voted 81-16 in favor of the package, which will provide one-time rebates of up to $600 for individuals or $1,200 for couples plus $300 for each child. Low income people, including retirees on Social Security and disabled veterans who pay no income taxes, would receive checks of $300.
The House of Representatives is expected to also vote on the package on Thursday and send it to President George W. Bush for his signature.
Senate Majority Leader Harry Reid, a Nevada Democrat, said the stimulus package approved by the Senate would "change the economic direction of this country" and added that lawmakers likely would do more this year to stimulate the economy.
At the same time the Labor Department said number of workers drawing jobless benefits has hit a 2 1/4-year high and major retailers reported a slowdown in consumer spending.
The bill also provides for higher loan limits for the Federal Housing Administration plus mortgage giants Fannie Mae and Freddie Mac.
"They are following this president right off a cliff," Reid said.
"This is not a victory for Republicans or Democrats. This is a victory for the American people," McConnell said.
(Reporting by Donna Smith, editing by David Alexander)
