The U.S. Congress passed economic rescue provisions and President Bush is expected to sign them into law immediately. Today, the U.S. House of Representatives passed the comprehensive rescue/tax extenders bill (H.R. 1424) by a vote of 263 to 171. The U.S. Senate passed it Wednesday night by a vote of 74 to 25.

Passage in the House was an uphill battle after the House rejected similar rescue provisions by a vote of 205 to 228 on Monday. After this stunning failure, the Senate added a comprehensive tax bill and provisions expanding FDIC coverage to accounts worth $250,000 to the failed rescue bill and passed the broader rescue/tax package. The tax package includes a one-year patch for the Alternative Minimum Tax, extensions of expiring tax relief for businesses, energy tax credits, and provisions ensuring that mental health benefits are on par with medical and surgical benefits. The House members who had opposed the rescue bill on Monday and supported it today ? mostly House Republicans ? attribute their change of heart to many factors including tax relief, expansion of FDIC coverage, mental health parity, and evidence that the economic crisis could get much worse without immediate Congressional action.

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