The Week of September 22

Congress could go out with a bang this week - passing a $700 billion effort to avoid a full-blown meltdown on Wall Street - before hitting the full-time campaign trail on Friday. Before they take off, though, lawmakers will have to wrap up a budget tide-over bill, while House and Senate leaders will try to cram in energy fixes, a second stimulus package and popular tax extenders.

The mother of all bailouts: After putting out Wall Street fires by scooping up mortgage giants Fannie and Freddie and insurance behemoth AIG, the federal government decided last week it needs a bailout to end all bailouts. It's asking Congress to give it the go ahead to buy up to $700 billion in mortgage-backed securities (the bum debt that has Wall Street firms teetering) over the next two years. Congress is on board, but Democrats may also add some demands of their own, like limiting the golden parachutes of CEOs that helped to create the mess, which could slow up passage of the bill.

09's budget: In theory, Congress is supposed to finish a budget
by October 1, when fiscal year '09 starts. In practice, Dems have known
all year they'd be punting the passage of a final budget to January,
when they hope to have a more sympatico president. In the meantime,
Congress will have to pass a "continuing resolution" to keep the
government funded using 08's budget numbers.

A second stimulus: With a still flagging economy, Congress plans a second - $50 billion - cash injection to stoke spending, but instead of checks to taxpayers this time the boost will come in the form of infrastructure investments, cash to help states with Medicaid costs, home heating help and a possible expansion of food stamp coverage.

Taxes: $42 billion in alternative energy tax incentives could
get folded into a larger tax extender bill in the Senate. A pile of
popular tax breaks - including research and development credits and
middle-class cover from the Alternative Minimum Tax - are set to expire
this year, unless Congress rolls them over; but disagreement of how
much those tax perks need to be paid for by budget offsets elsewhere
have kept the House members and senators from finding a tax bill that
can pass.

Energy: The House passed an energy package last week, mixing up
off-shore drilling measures with tax breaks and funding for alternative
energy, a mandate to use renewable energy for electricity production,
and taxes on the oil industry. The Senate may respond with a energy
measures of its own this week.