Biden: Stimulus Package Will Get Better With Changes

U.S. Vice President Joe Biden said Thursday in an interview on CNBC, that the final stimulus bill, which is now in the Senate, will "get better," and he "expects Republicans to vote for it."

AP Vice President Joe Biden

"We're not giving up on bipartisan support," Biden said. "Passage of the bill would be a notable achievement."

Biden went on to say that the bill may end up having additional infrastructure spending and tax cuts but didn't say what those tax cuts might be.

However, Republican Senator Richard Shelby of Alabama, also interviewed on CNBC, said he would not vote for the stimulus and that "he hopes no one else in his party votes for it in the current form." He did, however, say he expected some Republicans to support it.

Shelby said that instead of the Obama plan, "We should be tackling the problems in the financial system, using help from the government and private sector."

The Senate is expected to start considering the massive bill on Monday, following passage Wednesday in the House of a slightly smaller bill, without the support of a single Republican.

Senators will consider a nearly $900 billion package of tax cuts and spending programs that are aimed at pulling the U.S. economy out of its downward spiral.

Here's what is expected to happen next:

—Senators will offer amendments to change the legislation, which could include adding tax breaks and either redistributing or slicing out spending plans.

CNBC.com President Barack Obama

—These amendments could include proposals that would give tax breaks for companies that repatriate profits held overseas and for others to expand homeownership. Lawmakers could seek to remove language for programs like $400 million to help prevent sexually transmitted diseases.

—Republicans could seek to use procedural mechanisms such as lengthy debate—a filibuster—to slow or block the stimulus package.

To end debate, Democrats would need to seek a vote on cloture, which requires approval of three-fifths of the Senate—60 senators. This would clear the way for a vote on the bill.

—If the Senate approves the legislation, it will need to be reconciled with the different version that passed the House of Representatives. A group of lawmakers from each chamber will be appointed by party leaders to resolve the differences.

(Watch Video to see Biden interview)

—Once a compromise is reached, the House and Senate would again have to vote on the final version before it could be sent to President Barack Obama for his signature or veto.

Meanwhile, Republicans in the U.S. Senate accepted Thursday President Barack Obama's offer to search for a compromise on the stimulus bill as long as tax cuts play a large role.

"We look forward to offering amendments to improve this critical legislation," Senate Republican Leader Mitch McConnell said. Congress is rushing to meet a mid-February deadline set by Obama for enacting the legislation.

Obama's First 100 Days: What He's Done

Which CEOs Met With Obama Wednesday

The House bill was touted as costing $825 billion, but might be closer to $819 billion when accounting for its future impact on the deficit. The Senate bill, with different tax components, would come close to $900 billion.

Obama says he wants to work with Republicans as he not only pushes the stimulus package but looks ahead to other major initiatives, such as expanding health care, stemming global warming and revamping the financially troubled Social Security retirement program.

More Tax Cuts

McConnell said a main goal for the Senate Republicans will be to increase the amount of tax cuts in the package so they amount to 40 percent of the overall measure, with the rest in emergency spending.

Jonathan D. Colman

The House-passed bill is closer to 33 percent being devoted to tax cuts—not hugely different from McConnell's goal.

The Senate Republican leader's formula contrasted with what many House Republicans sought: only tax cuts and no new spending at all to jump-start an economy that has been in a recession for more than a year.

On Friday, the government will issue its latest estimate of U.S. gross domestic product.

Many economists think it will show that the economy suffered a 5.4 percent contraction last year, which would be the worst performance since 1982.

For Investors

• Stocks Could Drop 20%: Dr. Doom
• Once-Great Stocks for Under $10
• More Super Bowl Stock Picks

Data released Thursday showed the number of U.S. jobless claiming benefits jumped to a record in mid-January, and new orders for durable goods fell for a fifth straight month in December, while sales of newly built single-family homes slumped to their lowest levels since records started in 1963.

Beyond calling for more tax cuts, McConnell said a jobs-creating economic stimulus bill should be devoid of questionable spending.

On another front, Obama signed his first bill into law Thursday, handing his labor and women's rights backers a victory by reversing a 2007 U.S. Supreme Court decision that made it harder to sue for pay discrimination.

With the woman for whom the law was named at his side, Obama signed the Lilly Ledbetter Fair Pay Act at a White House ceremony. The Democratic-led Congress passed the measure this week.

© 2009 CNBC