President-elect Barack Obama, warning of "a crisis unlike any we have seen in our lifetime," implored Congress Thursday to move swiftly on a massive economic recovery package.
But the Democrat-led Congress is eager to assert some control and is beginning to chafe at the president-elect's demand for quick approval of a stimulus program pegged at $800 billion and likely to grow.
Mr. Obama's speech at George Mason University in Fairfax, Va., was his first formal address since his election and the official launch of his sales pitch, delivered before an audience of governors, mayors, lawmakers and aides. He warned that an employment report due out Friday will show 2008 to be the worst year since World War II for job losses. Embracing the role and power of government, he said, "Only government can break the vicious cycles that are crippling our economy."
The incoming president conceded that his American Recovery and Reinvestment Plan will "certainly add to the budget deficit" -- projected to be $1.2 trillion for this fiscal year. But, he said, the alternatives to bold and expensive action would be unthinkable. "Equally certain are the consequences of doing too little or nothing at all, for that will lead to an even greater deficit of jobs, income and confidence in our economy," Mr. Obama said.
But even a Democrat-controlled Congress doesn't make the task easy. Rep. James Moran (D., Va.), a member of the House Appropriations Committee, said Mr. Obama's deadline of the scheduled Feb. 13 Presidents Day recess would be "almost impossible to meet."
What is the right balance between tax cuts and spending for the economic stimulus package?Rather than going directly to the House floor, as initially planned, the package will now originate in several congressional committees, including the tax-writing House Ways and Means panel. The House and Senate are likely to approve differing versions of the package, requiring end-game negotiations over a compromise and a second round of votes. Speaker Nancy Pelosi (D., Calif.) threatened Thursday to cancel the planned Feb. 13 break to ensure the package is completed.
Meanwhile, Democratic leaders are looking to hand Mr. Obama more-modest early victories. They are accelerating action on expanding the State Children's Health Insurance Program, which President George W. Bush opposed. The House will vote Friday on measures designed to make it easier for women to sue for equal pay with men.
Mr. Obama's team has laid out some components of his plan: a $500-per-worker tax cut; tax write-offs for businesses suffering losses in 2008 and 2009; incentives for business investment; about $100 billion for health care, to temporarily take on more of the states' burden for Medicaid and to finance computerized medical records; billions for old-style building projects targeting roads, bridges, water systems and schools; and billions more to foster alternative energy and energy efficiency.
His speech Thursday established new goals: doubling the production of alternative energy in three years, upgrading the efficiency of more than 75% of federal buildings and two million private homes, and computerizing all medical records in five years. To his wish list, he added requests not usually considered economic stimulus, such as teacher training and scientific and medical research. "Every day we wait or point fingers or drag our feet, more Americans will lose their jobs," he said.
As Mr. Obama ramps up his campaign for his package and floats new details, the opposition is also growing.
Exxon Mobil Corp. Chief Executive Rex Tillerson questioned the president-elect's alternative-energy pledge following a Washington speech Thursday, telling reporters it would be "very challenging" to double renewable energy production as energy demand sinks, credit for new investment dries up and technological advances lag. "Yes, our economy needs help," said House Minority Leader John Boehner (R., Ohio). "But at the end of the day, how -- how much debt are we going to pile on future generations?"
The fight could begin to define how Mr. Obama deals with his former senate colleagues. During much of his eight years in office, Mr. Bush dominated Congress in the battle to set the agenda. Mr. Obama will face demand among lawmakers for a more assertive role. On Thursday, Mr. Obama dispatched National Economic Council Director-designate Lawrence Summers, and senior adviser David Axelrod to the Senate to confer with rank-and-file Democrats. Mr. Summers painted an ominous portrait of the economy, while Mr. Axelrod put the issue in terms of voter fears, according to a meeting participant, Illinois Democratic Sen. Dick Durbin.
In an interview, Senate Finance Chairman Max Baucus (D., Mont.) said he called Mr. Summers early Thursday to give him a heads-up that there are "some concerns that need to be addressed."
Mr. Baucus said changes will likely be made to the Obama plan -- he suggested energy-production provisions are likely to be strengthened -- and said there is likely some hard fighting ahead before the measure clears Congress. "Clearly, it's going to be difficult," he said.
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