Feedback: McHugh Votes Yes On Bailout Plan

The $700 billion government bailout of the financial industry has been signed into law by President Bush.

The House, which on Monday rejected an earlier version of the bill and sent stocks tumbling, approved it this time by a vote of 263-to-171.

North country Congressman John McHugh (R. - 23rd District) voted in favor of the measure.

“We’re hopeful that this helps. It’s not a cure-all. We’re facing some very difficult times ahead…Without this step the difficult times would be that much more difficult,” said McHugh.

Senate approval came Wednesday night.

Even before the vote, the White House tried to dampen optimism about its immediate impact on the economy.

A spokesman said it’s not aimed at giving a boost to the economy, but only at preventing a crisis in the economy.

The core of the package is the same: $700 billion at the disposal of the Treasury Department to buy bad mortgage-related securities weighing down the balance sheets of the institutions that hold them.

Among the new elements are a phase-in of that $700 billion to allow stronger congressional supervision, measures aimed at protecting taxpayers, and a crackdown on the “golden parachutes” given to departing executives of firms that may benefit from the bailout.

The bill also expands the limit on federal deposit insurance for individual bank deposits.

And then there’s also a series of popular tax breaks, including for investment in and production of renewable fuels.

“If it goes according to plan, and people who are experts feel that it will, in three to five years ahead taxpayers will actually make some money,” said McHugh.

Spending on rural schools, disaster aid and an expansion of mental health coverage under private insurance plans are also in there.

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