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Obama’s stimulus plan may exceed $850 billion

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Barack Obama is working on a stimulus plan that could total around $850 billion, an adviser to the president-elect said.

Bloomberg reported that Obama’s advisers are working with lawmakers to come up with a package that could provide money to improve the nation’s crumbling infrastructure, offer state aid for unemployment and health-care programs and give incentives to promote renewable-energy production. Obama also wants to create as many as 2.5 million jobs over the next two years.

His transition team contends the $850 billion package, equaling 6 percent of the nation’s $14 trillion economy, is needed to counter rising unemployment, but the sum exceeds House Speaker Nancy Pelosi’s estimate in the range of $500 billion to $600 billion. Senate Majority Leader Harry Reid estimated earlier this month that $400 billion would be the low end of any proposal, and some economists are calling for a $1 trillion spending program.

Pelosi has said that she wants to present Obama with a bill as soon as he takes office on Jan. 20. Reid has not set a date for Senate action on stimulus legislation.