7:34am UK, Saturday February 07, 2009

US Senators are reported to have reached a tentative deal on Barack Obama’s $780bn economic stimulus plan – although some Democrats remain undecided.

The Capitol building in Washington DC

A compromise agreement has been brokered between a small group of ‘moderate’ Democrats and Republicans, Nebraska Senator Ben Nelson announced.

A Democratic majority is still required for the emergency package to be passed.

A vote on the package will be held over the weekend after time escaped the lawmakers on Friday night.

Sky News political analyst and former Clinton advisor Jon-Christopher Bua said the futures of Democrats and Republicans are “at risk” amid the bargaining.

“If the final tally is too small to be effective, the Republicans can be blamed. If it is too costly and ineffective, the Democrats will be voted out of office in the mid-term elections just like they were during Clinton’s first term in 1994.

“This is not just about saving the economy… for Congress it is about saving their jobs.

“Even Senator Ted Kennedy, the ‘Liberal Lion’ who is still ailing, will come up from his Winter home in Palm Beach Florida to vote for this package.”

Senators have been engaged in intense debate and negotiations for the past few days.

Senator Kent Conrad, a Democrat from North Dakota, said measures including a homebuyer tax credit and car tax credit would remain in the final package.

Democratic Senator and former presidential candidate John Kerry said the compromise deal involved 42% tax cuts and the rest in new government spending.

The tentative deal comes as America recorded its worst job losses for 35 years – with 598,000 people losing their jobs in January.

President Obama has imposed a February 16 deadline for the Senate to support his proposals.

Following the expected Senate vote, Mr Obama will then head to Indiana and Florida to broadcast his first press conference aimed at convincing the US public to support the proposals.

Last week, the House of Representatives passed its version of the stimulus plan without a single Republican vote.