Seeking to give a "booster shot" to the ailing US economy, President George W Bush has signed a legislation that will put more than $ 152 billion into the pockets of Americans.
Under the Economic Stimulus Act of 2008, rebate cheques to more than 130 million taxpayers and low-income groups will go out beginning May, and businesses would get tax breaks for investing in new plants and equipment.
"I know a lot of Americans are concerned about our economic future. Our overall economy has grown for six straight years -- but that growth has clearly slowed," Bush said on Wednesday.
Showing bipartisanship in the face of a looming recession, the Democratic-controlled Congress swiftly approved the measure within weeks. And Bush said the bill proved "we could come together to provide a booster shot for our economy -- a package that is robust, temporary, and puts money back into the hands of American workers and businesses."
"Helping our economy requires us to take action, it is equally important that we not overreact. Our economic success is not the result of the wisdom of politicians in Washington, D.C. -- but of the collective wisdom of the American people," Bush said during a signing ceremony at the White House.
The president said that over the past seven years, the economy had absorbed shocks such as recession, corporate scandals, terrorist attacks, global war, and it was capable of emerging "even stronger".
"In a dynamic market economy, there will always be times when we experience uncertainties and fluctuations. But so long as we pursue pro-growth policies that put our faith in the American people, our economy will prosper and it will continue to be the marvel of the world," he added.
Officials say rebate checks of up to $ 600 for individual taxpayers and $ 1,200 for couples, plus $ 300 dollars for dependent children, could boost consumer spending and energise the economy.
The plan itself is seen by key lawmakers as only the first in a series of steps needed to factor in the longer term economic problems and challenges.
Senate majority leader Harry Reid had said that the Senate would be considering "another stimulus package or two" on housing and other issues with legislation being ready by the end of this month.