Dec. 22 (Bloomberg) -- The federal government should help fund new light-rail lines, parking lots near mass-transit stations and other energy-efficient transportation projects that can get under way in 90 days as a way to stimulate the economy, John Edwards said today during an Iowa campaign stop.

Edwards, who is competing with Senators Hillary Clinton of New York and Barack Obama of Illinois to finish first in Iowa's Jan. 3 Democratic caucus, called on Congress to approve a $25 billion package of investments in clean energy, job training and unemployment benefits. He said lawmakers should be prepared to allocate another $75 billion in the event of a recession.

``Hard-working families across America are already struggling to make ends meet,'' Edwards said in Lisbon, Iowa. ``Before things get worse, I urge Congress to take action immediately to strengthen our economy and create new jobs.''

Edwards, a former U.S. senator from North Carolina, did not say where the money would come from to fund his plan. He has proposed paying for expanded health-care coverage by rolling back President George W. Bush's tax cuts for the wealthiest Americans.

He said the initial $25 billion would go for investments in clean energy such as wind farms and weatherizing homes and businesses; to train workers for new jobs in the clean energy field; for aid to states to avoid cuts in Medicaid, education and other services; and for extended unemployment benefits.

Edwards also called for a home relief fund to provide counseling and financial assistance to homeowners facing foreclosure. He also asked Congress to enact new legislation against predatory lending.

To contact the reporter on this story: Jonathan D. Salant in Washington at jsalant@bloomberg.net.

Last Updated: December 22, 2007 17:27 EST