By Assistant Managing Editor Avelino Maestas

Congress this week began work on an economic stimulus package, designed to prop up a struggling economy amidst a worsening mortgage-lending crisis. While the details of Democrats’ plans remain under wraps, President Bush unveiled his proposed economic stimulus package [3] on Friday. He called for tax rebates and other incentives, while Treasury Secretary Henry Paulson said the package would cost almost $150 billion.

In an unusual display of bipartisanship, House Speaker Nancy Pelosi [4] (D-Calif.), Majority Leader Steny Hoyer [5] (D-Md.), House Minority Leader John Boehner [6] (R-Ohio), Senate Majority Leader Harry Reid [7] (D-Nev.) and Senate Minority Leader Mitch McConnell [8] (R-Ky.) participated with Bush in a conference call to discuss a stimulus program. Earlier, House leaders from both parties met to determine their goals for a plan.

In other news, the House Armed Services Committee re-approved the FY 2008 Defense Department budget [9], which was vetoed by Bush during the Christmas break. While some dispute the validity of the veto, Congress appears to be acquiescing as it focuses on more pressing concerns.

The committee stripped the bill of language that would open the Iraqi government to litigation for offenses committed during the regime of Saddam Hussein. Victims of terrorist attacks lambasted Bush’s veto of the bill based on his opposition to the language, but the House looks ready to pass the legislation and send it along to the Senate.

On the (alleged) corruption front, Rep. [William Jefferson] (D-La.), appeared in court for the first time to testify about an FBI raid of his home last year. The testimony came during a pre-trial hearing on a motion to suppress evidence gathered during the raid, which was part of a bribery and conspiracy investigation.

In addition, Sen. Roger Wicker [10] (R-Miss.), came under fire for an earmark he secured while in the House of Representatives. Wicker was recently appointed to fill the remainder of former Sen. Trent Lott [11]’s term. Watchdogs singled out Wicker for providing $6 million to Aurora Flight Science, a top campaign contributor for the then-congressman. The company, a defense contractor, also employed his former congressional chief of staff as a lobbyist.