Democratic leaders are moving aggressively to put the finishing touches on a hard-to-resist package that could put Republicans facing tight reelection battles in a tough position. The package is expected to include billions of dollars for new infrastructure projects, provisions to help the auto industry and a package to renew expiring energy-tax incentives that the business community has lobbied for extensively.

And Democrats see their new economic-stimulus package as an opportunity to highlight the differences between the two presidential candidates on the top issue facing voters.

Republicans say the economic collapse shows the need to keep taxes low, but they have been resistant to additional government measures after Congress approved a stimulus package with rebate checks in February and a housing bailout this summer.

“Whether or not Sen. [John] McCain will support this in the Senate, of course nobody knows,” said Sen. Carl Levin (D-Mich.) in a Monday conference call with reporters. “I just hope he shows a glimmer of independence from the Bush economic policies.”

McCain (Ariz.) and Democratic candidate Sen. Barack Obama (Ill.) spent Monday sparring over the economy, with the Democrats pouncing on McCain’s statement that the fundamentals of the economy are “strong.” On the conference call, Michigan Gov. Jennifer Granholm (D) called the statement “absurd.”

But Democrats are grappling with whether Congress should again intervene to help Wall Street respond to the collapse of storied financial institutions and the housing turmoil that is the root of the nation’s economic turmoil, or if they should simply focus on a measure that would help states, industries and consumers.

“I think the chickens are coming home to roost on the Bush economic policies, but that doesn’t answer where we go from here,” Levin said.

Before Congress adjourns at month’s end to campaign before the November elections, Democratic leaders will bring forward the economic-stimulus bill. The House will likely bring the $50 billion package to the floor later this week, with Senate action expected soon after.

Democrats said Monday they expected to attract wayward Republicans by characterizing it as the most appropriate response to the economic crisis.

“I think the Republicans are looking for an opportunity, particularly the ones up for reelection … to do something different from George Bush economic policies,” said Sen. Sherrod Brown (D-Ohio), a member of the Banking Committee.

Congressional Republicans are reacting cautiously to the news as they plot their response.

“This is not the time for fault-finding or recrimination,” said House Financial Services ranking Republican Spencer Bachus (Ala.). “At this time, we all need to work together to restore stability to the markets and to support our economy.” 

Jared Allen contributed to this story.