WASHINGTON — The Senate is scheduled to vote Wednesday on a revised version of a bill to stabilize the financial markets, according to top lawmakers.
The revised bill, which would create a government facility to buy and hold up to $700 billion in troubled assets, is expected to include a provision that raises the deposit insurance limit to $250,000 for one year.
The legislation is also expected to include extensions for tax breaks set to expire and changes to the alternative minimum tax. Language on the revised bill is expected to be released Wednesday morning.
The revisions are aimed at swaying Republicans, who overwhelmingly opposed the bill in the House. Senate Majority Leader Harry Reid said late Tuesday that he expected the Senate bill to pass.
"Senate Democrats and Republicans believe it is essential that we work quickly on this important legislation to restore confidence to our financial system and strengthen the economy," Sen. Reid said. "We have worked in a bi-partisan way to do so, and it is my hope that with the improvements we have made to the administration's proposal, the Senate will pass this legislation tomorrow and the House of Representatives will follow suit soon thereafter. I believe that this legislative package will ensure that the needs of Main Street are not forgotten."
On Monday, the House rejected the bill 228 to 205. Lawmakers and the administration worked Tuesday to find sweeteners to sway 12 members to try again later this week.
The House has been adjourned for Rosh Hashanah and is not expected to take a revised bill up until Friday at the earliest. It was unclear if House lawmakers would continue working on their own version of the bill, or attempt to pass the revised Senate version.
Both presidential candidates said Tuesday they support an increase in the deposit insurance limit, and Federal Deposit Insurance Corp. Chairman Sheila Bair said an increase could help calm fears about financial institutions.
Sen. Charles Schumer, D-N.Y., said the changes to the bill would help ensure more support.
"This is a brilliant move by Harry, and I believe it will help pick up votes on both sides of the aisle," Sen. Schumer said.