U.S. senate passes $1.1 trillion spending package for fiscal year 2010

WASHINGTON, Dec. 13 (Xinhua) -- U.S. Senate passed on Sunday a 1.1-trillion-U.S. dollars spending package for fiscal year 2010, except for the Defense Department.

The Democratic-controlled Senate approved the bill at a vote of57-35. The year-end package that covers about half of all federal programs, now goes to President Barack Obama for his signature.

The 1,000-plus-page bill brings together six of the 12 annual spending bills that Congress had been unable to pass separately because of partisan roadblocks even though the 2010 budget year began Oct. 1 2009. Obama has signed into law five others.

The legislation includes 447 billion dollars U.S. government agencies' operating budgets and about 650 billion dollars Medicare and Medicaid benefits. But it does not include the Pentagon's spending, which is about 626 billion dollars.

The measure includes 2 billion dollars, 75 million more than in2009, to study global climate change, and requires periodic reports on the status of diplomatic efforts to freeze Iran's nuclear program.

It would allow the Securities and Exchange Commission to hire 420 workers to oversee investments and the financial markets.

The bill also approves a 2 percent pay increase for federal workers.

The unfolding financial crisis and economic recession have put the United States into a fiscal dilemma.

Analysts said that U.S. Congress must soon raise the debt ceiling, now totaling 12.1 trillion dollars, so the Treasury can continue to borrow.

Democratic leaders planned to push the debt ceiling to close to14 trillion dollars.

Senators from the Democratic said the spending was critical to meet the needs of a recession-battered economy.

"Every bill that is passed, every project that is funded and every job that is created helps America take another step forward on the road of economic recovery," Senate Majority Leader Harry Reid, D-Nev., said after the vote.

Republicans criticized that the bill adds more burden to the federal deficit which hit the record 1.42 trillion dollars in the 2009 fiscal year ending Sept. 30.

The Obama administration expected the federal deficit would reach 1.5 trillion dollars in fiscal year 2010.

"Obviously we need to run the government, but do you suppose the government could be a little bit like families and be just a little bit prudent in how much it spends?" said Republican Senator Jon Kyl.

Another Republican Senator John McCain, a longtime critic of such projects, said that the bill was "shameful."

Besides budget deficit, the double-digit unemployment is the top concern of the Obama administration.

Unemployment, currently standing at 10 percent, is not expected to fall significantly next year.

Observers said that unemployment and deficit issues will test the Democratic political future in next year's Congress mid-term election.

Congress is now working on the extension legislation procedure of the 787 billion dollars stimulus act passed last February. The extension proposal was sent by Treasury Secretary Tim Geithner to the House last week.

The proposal, aiming at create new jobs for the country included jobless payments and health insurance subsidies for the unemployed.