Obama: Stimulus Bill "On Target"

Friday, Jan 23, 2009  |  Updated 9:15 AM PDT
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Obama: Stimulus Bill "On Target"

AP

President Barack Obama speaks about his massive new stimulus package.

President Barack Obama urged lawmakers from both parties Friday to back his economic stimulus package, saying the economy's dire problems require congressional action even if some members object to portions of the plan.

"I know that it is a heavy lift to do something as substantial as we're doing right now," Obama said as he sat down with House and Senate leaders from both parties in the White House's Roosevelt Room. Republican members, especially, have objected to some of the $825 billion plan.

"I recognize that there are still some differences around the table and between the administration and members of Congress about particular details on the plan," he said. "But I think what unifies this group is a recognition that we are experiencing an unprecedented, perhaps, economic crisis that has to be dealt with, and dealt with rapidly."

He thanked congressional leaders for working quickly, even through some holiday periods, to move the rescue package he says will create 3 million to 4 million new jobs.

"That is going to be absolutely critical and it appears that we are on target to make our President's Day weekend," he said.

Democratic leaders have promised the measure will be ready for Obama's signature by mid-February.

Obama also said that any legislation governing the use of an additional $350 billion in financial industry bailout money must include new measures to ensure accountability and transparency.

The stimulus legislation, priced at about $825 billion and likely to grow, advanced in House committees this week. Republicans, who are in the minority, were unable to make inroads with their proposals.

The House Ways and Means Committee on Thursday approved $275 billion in tax cuts on a party-line vote of 24-13. The House Energy and Commerce Committee, also working on the bill, cleared $2.8 billion to expand broadband communications service. And on Wednesday night, the House Appropriations Committee approved a $358 billion spending measure on a 35-22 party-line vote.

On Friday, Senate Finance Committee Chairman Max Baucus was expected to unveil a Senate version of the tax-cutting portion of the bill. The legislation could have a more bipartisan look in the Senate, where it takes 60 votes out of 100 to overcome procedural blocks.

Obama is scheduled to meet with House Republicans next week, at their request. But by then the House bill could be on the floor awaiting a vote.

"Yes, we wrote the bill. Yes, we won the election," House Speaker Nancy Pelosi said Thursday. "But that doesn't mean we don't want it to have sustainability and bipartisan support, and the president is working hard to get that done."

House Minority Leader John Boehner, R-Ohio, protested: "While we appreciate the chance to work with the president, it appears that House Democrats are going to continue to barrel ahead without any bipartisan support."

Obama's meeting with the bipartisan leadership Friday came in the midst of increasingly grim economic news. Government reports showed the number of new jobless claims was up and new home construction hit an all-time low in December. Microsoft Corp. said it would slash up to 5,000 jobs over the next 18 months, while chemical maker Huntsman Corp. said it would cut more than 1,600 employees and contractors combined.

Republicans have been seeking deeper tax cuts and have said there was no reliable estimate of the bill's impact on employment.

"Our plan offers fast-acting tax relief, not slow-moving and wasteful government spending," Boehner said, referring to a study by the Congressional Budget Office that questioned administration claims that the money could be spent fast enough to reduce joblessness quickly.

In response to the study, Peter Orszag, the director of the White House Office of Management and Budget, sent a letter to Senate Budget Committee Chairman Kent Conrad, D-N.D., late Thursday pledging that at least 75 percent of the stimulus package would be spent in 2009 and 2010.

On a key vote Thursday, Democrats preserved a tax break for this year and 2010 that would mean $500 for many workers and $1,000 for millions of couples, including those whose earnings are so low that they pay no federal income tax. They also voted down a Republican effort to eliminate a health insurance subsidy for laid-off workers.

Separately, the House Energy and Commerce Committee late Thursday approved a $2.8 billion program that would expand broadband service into underserved areas. It also approved various programs costing an estimated $27 billion to promote energy efficiency.

The panel also passed a $20 billion effort to speed the creation of electronic health records, and it approved more money to help states afford increased enrollment under Medicaid, the health care program for the low income. In all, the additional spending for health care programs totals about $150 billion over five years.   

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