The United States Senate, feeling heat from constituents who are now demanding action, will tackle a bailout bill today. The Senate bill will add provisions not in the House bill, including a one year increase in the FDIC cap for bank and credit card accounts, (from $100,000 to $250,000), the renewal of a host of business tax breaks that had expired, and a fix to the problems of the Alternative Minimum Tax. The Senate bill will likely peel off some Republican House votes since it offers no tax increase to pay for the decreased tax revenue from the AMT fix and restoration of business tax breaks, but may be a tough pill to swallow for some centrist and conservative Democrats, who are concerned about violating so called pay-go provisions.

Both Barack Obama and John McCain have expressed support for the Senate plan, and both will reportedly be in Washington for the vote today. President Bush has expressed support, as well as criticism of the inaction of the House. From the Washington Post:

“I am disappointed by the outcome” of the House vote, Bush said. Appearing drawn and frustrated, he noted that Monday’s stock market dive cost more in market capitalization — more than $1 trillion — than his $700 billion rescue proposal. “The reality is that we are in an urgent situation, and the consequences will grow worse each day if we do not act,” Bush said. “Our economy is depending on decisive action from the government. . . . This is what elected leaders owe the American people,” he added.

With public opinion now appearing to swing in favor of some sort of package it appears that political momentum is once more building for passage. But the political cross currents in the House make predicting that outcome a tricky business.