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The Honolulu Advertiser
Posted on: Sunday, January 25, 2009

Obama details $825B stimulus

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 •  68% approve of Obama's performance

Hawaii news photo - The Honolulu Advertiser

President Barack Obama

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  • To watch a video of Obama's address, go to: http://www.whitehouse.gov/president-obama-delivers-your-weekly-address/

  • To see Obama's economics report, go to: www.tinyurl.com/db83d8

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    WASHINGTON — President Obama yesterday pitched to Americans more details of an economic stimulus plan that could exceed $825 billion, hoping he can ease Republican resistance in Congress by building public support for spending on items as varied as health coverage, port security and home weatherization.

    In his weekly address, posted on the Web site of the White House, the president also painted a dire picture of the consequences of inaction.

    After his speech, Obama met with his economic advisers for a two-hour session in the Roosevelt Room and focused on the proposed $825 billion economic stimulus package that Congress is considering. The group also discussed the upcoming federal budget, Obama's first chance to shape the country's spending amid a recession that lost 2.6 million jobs last year, the most in a single year since World War II.

    "If nothing is done, the unemployment rate could reach double digits," he said in his weekly address. "Our economy could fall $1 trillion short of its full capacity, which translates into more than $12,000 in lost income for a family of four. And we could lose a generation of potential, as more young Americans are forced to forgo college dreams or the chance to train for the jobs of the future.

    "In short, if we do not act boldly and swiftly, a bad situation could become dramatically worse."

    His videotaped address came a day after he met with congressional Democrats and Republicans at the White House to hash out differences, and Republicans pushed for more tax cuts in place of spending. All sides say they would like to pass a package by mid-February.

    Obama acknowledged people's concern about the scope of the proposed stimulus spending at a time when the billions Congress and the Bush administration threw at bailing out Wall Street have had dubious results.

    "I understand that skepticism, which is why this recovery plan must and will include unprecedented measures that will allow the American people to hold my administration accountable for these results," the president said. He promised detailed public disclosure through a Web site about where the stimulus spending goes.

    He also included some proposals that might appeal to Republican and business constituencies.

    PACKAGE BREAKDOWN

    Obama's recovery package aims to:

    • Provide healthcare coverage for 8.5 million people, either through a tax credit to buy coverage under COBRA provisions if they lose their jobs or through Medicaid.

    • Spend on 90 ports to beef up national security and increase trade.

    • Save $2 billion a year by making federal buildings energy efficient.

    • Extend electricity transmission lines.

    • Put 40 million "smart meters" in U.S. homes.

    • Expand broadband access to millions of Americans.

    • Double within three years the amount of energy that could be produced from renewable resources. That is an ambitious goal, given the 30 years it took to reach current levels. Advisers say that could power 6 million households.

    • Upgrade 10,000 schools and improve learning for about 5 million students.

    • Triple the number of undergraduate and graduate fellowships in science.

    The plan would spend at least 75 percent of the total cost — or more than $600 billion — within the first 18 months, either through bricks-and-shovels projects favored by Democrats or tax cuts that Republicans have pushed.

    There is heavy emphasis on public works projects, which have lagged as state budgets contracted. Governors have lobbied Obama to help them patch holes in their budgets, drained by sinking tax revenues and increased need for public assistance such as Medicaid and children's health insurance. Obama's plan would increase the federal portion of those programs so no state would have to cut any of the 20 million children whose eligibility is now at risk.

    GOP RESPONSE

    In the Republicans' weekly address, House Minority Leader John Boehner of Ohio said his party wants to work with Obama and congressional Democrats but that Republicans prefer "fast-acting tax relief, not slow-moving government spending programs."

    The Republicans' competing plans have included cutting income tax rates and providing a tax credit for home purchases. Boehner said for now, the Democrats' plan "is chock-full of government programs and projects, most of which won't provide immediate relief to our ailing economy."

    The president planned to visit Capitol Hill on Tuesday to meet privately with GOP lawmakers.

    Obama has said the stimulus could preserve as many as 4 million jobs, 90 percent in the private sector, and that three-fourths of the money would be spent within 18 months.

    "We're committed to working with President Obama in search of swift, bipartisan action that creates jobs," Boehner said, "not another Washington program that overpromises and under-delivers."

    The Associated Press contributed to this report.