Republicans fail to block Obama stimulus

Barack Obama's $825 billion (£583 billion) economic stimulus plan has passed its first legislative hurdle despite opposition from every Republican congressman.

The plan was approved by the House of Representatives 244 votes to 188 in a stark reminder of the partisan politics that Mr Obama's administration must still contend with.

Opposing the plan, which includes tax cuts, unemployment and health benefits and a new public works building programme, Republicans warned that America risked being transformed into a welfare state.

The president, whose legislation may face a sterner test when it comes before senators, said he was confident the stimulus package would "turn our economy around".

"I know that there are some who are sceptical of the size and scale of this recovery plan," he told reporters in Washington. "And I understand that scepticism, given some of the things that have happened in this town in the past.

"All we can do, those of us here in Washington, is help create a favourable climate in which workers can prosper, businesses can thrive, and our economy can grow. And that is exactly what the recovery plan I've proposed is intended to do.

"And that's exactly what I intend to achieve soon."