U.S. Government

Senators and representatives return to work today following a two-week recess to once again find the struggling economy dictating their schedules. The mortgage crisis is continuing, and home foreclosures are on the rise. In addition, cities across the country are bracing for an oversupply of housing units as construction of new homes and condos—began while the housing bubble was at its peak—is completed. Meanwhile, taxpayers are waiting for rebate checks that were part of a stimulus package approved last month.

In the Senate, Majority Leader Harry Reid wants to vote on a second stimulus package meant to relieve pressure on the housing market and on homeowners. Under the Senate measure, municipalities would share $4 billion in grants for the restoration of foreclosed homes. The bill would also provide $200 million for loan counselors, and would amend bankruptcy law to allow judges to modify mortgages for individuals on the verge of bankruptcy.

The bankruptcy provision is a bitter pill for the banking industry, which has lobbied for its removal from the legislation. In addition, Senate Republicans are striving to insert their own amendments: a limit on plaintiff attorneys’ fees and an extension of President George W. Bush’s 2001 tax cuts.

While there’s plenty to get done on the economic front, Congress will also take up legislation regarding the Iraq war in April. House leaders are drafting an “emergency” supplemental spending bill to fund the wars in Iraq and Afghanistan, since Pentagon officials have refused to include the wars in their normal budget requests. Democrats are saddling the legislation with a slew of domestic priorities, hoping to force tough votes for GOP members.

There's more—including committee meeting schedules—after the break.