Senate, Infrastructure | featured news

The U.S. Senate on Wednesday approved a two-year blueprint for transportation that gives states greater spending flexibility, allows the federal government to set minimum safety standards for subway systems and buys time to find a solution for a funding system teetering on the verge of bankruptcy.

Republicans in the Senate Thursday dealt President Barack Obama the third in a string of defeats on his stimulus-style jobs agenda, blocking a $60 billion measure for building and repairing infrastructure like roads and rail lines.

The Obama administration is considering a range of new measures to boost economic growth, including tax cuts and a new nationwide infrastructure program, according to people familiar with the discussions. On the list of possible actions: additional tax cuts for small businesses beyond those included in a $30 billion small-business lending bill before the Senate. It's not clear what those tax breaks would target or how much they might cost in lost revenue to the government.