Senate Democrats, under pressure from party colleagues in the House, agreed Thursday to an economic rescue package that would add checks for Social Security retirees and disabled veterans but leave out extended jobless benefits and additional business subsidies.

The package would rush tax rebates of $500 for individuals and $1,000 for couples to most taxpayers and grant business tax cuts to revive the economy.

Leaders in both parties and in both chambers of Congress had agreed by Wednesday night on the idea that 20 million seniors whose sole or main income is Social Security and 250,000 veterans living off disability benefits should be added to those getting rebates under the $161 billion stimulus bill first negotiated by House Democrats and President Bush.

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The retreat by Senate Democrats came after House Speaker Nancy Pelosi sided with Republicans, including GOP Senate Leader Mitch McConnell of Kentucky, and called on the Senate to stop its infighting and pass the bill.

In doing so, Pelosi, D-Calif., split openly with Senate Majority Leader Harry Reid, D-Nev., who backed the more expensive package.

"There's no reason for any more delay on this," Pelosi said Thursday before agreement was reached.

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Later, Pelosi issued a statement tailored to support McConnell's position — which Reid has repeatedly rejected — and pointedly ignoring the other add-ons.

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"We didn't block the proposal," McConnell said. "We just said there's a better way to go and there's an alternative."

Saying his Senate colleague has wrapped up the Republican Party’s presidential nomination, Minority Leader Mitch McConnell (Ky.) on Thursday threw his support to Sen. John McCain (Ariz.) as the GOP’s nominee to be the next president.

 

McConnell, the conservative leader of the 49-member Republican Conference, had kept his powder dry during the months of a brutal presidential contest, which dwindled to just two candidates Thursday when former Massachusetts Gov. Mitt Romney abandoned his bid. McConnell said he is proud that his fellow Senator will secure the GOP nomination, saying it is good for the institution the two lawmakers have shared for more than two decades.

 

“I think he’s going to be the Republican nominee — it’s essentially over,” McConnell said, responding to a question about McCain’s chances with Romney out of the contests. “There’s widespread pride amongst our Conference that one of our own is going to be our nominee.”

 

Asked whether his positive review of McCain translates into an endorsement, McConnell said: “He’s certainly going to be our nominee. I’m proud to support him.”