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Obama stimulus victory overshadowed by resignation
(Agencies)
Updated: 2009-02-13 15:52 WASHINGTON -- US President Barack Obama is nearing a big victory in Congress on his $790 billion stimulus package, but the fight for the plan set back his attempts at bipartisanship as his Republican choice for commerce secretary withdrew his nomination Thursday.
Gregg became the third Cabinet-level Obama nominee and the second choice for commerce secretary to drop out, further drawing out the president's attempts to complete a Cabinet. Gregg's decision still leaves Obama with two Republicans in his administration, an unusual move across party lines. Hours after Gregg dropped out of consideration, US President Barack Obama joked that maybe Abraham Lincoln would have liked the job, during a dinner honoring the 16th president on the 200th anniversary of his birth. "In 1854, Lincoln was simply a Springfield lawyer who'd served just a single term in Congress," Obama said, "maybe wondering if somebody might call him up and ask him to be commerce secretary ..." Lawmakers reached a tentative deal on the stimulus bill Wednesday after 24 intense hours of negotiations, cutting the cost from more than $800 billion. But key lawmakers were reluctant to call it quits and bargained into overtime Thursday on the legislation before all issues were reported settled. Gregg's reference to the stimulus underscored the partisan divide over the centerpiece of Obama's economic recovery plan. Conservatives in both houses have been relentless critics of the plan, arguing it is filled with wasteful spending and that greater tax cuts would be more effective in creating jobs. The Democratic-controlled Senate and House of Representatives are nearing a vote on the reworked bill, though Obama is not expected to pick up more Republican support than he had in votes on an earlier version of plan, when only three Republican senators and no Republican House members backed it. House leaders announced a vote for Friday, with the Senate to follow later in the day or over the weekend. Obama, meanwhile, delivered what has become a daily call for congressional action, this time from America's industrial heartland at a Caterpillar Inc. plant in East Peoria, Illinois. His message was blunted when the company's chairman warned that it may be up to a year before the multibillion-dollar program has a positive impact the economy. "It is time for Congress to act, and I hope they act in a bipartisan fashion," Obama said, arguing his plan would unleash a wave of construction, innovation and job growth once he signed it into law. "It's about giving people a way to make a living, support their families and live out their dreams," Obama said. "Americans aren't looking for a handout. They just want to work." The stimulus plan includes spending on infrastructure projects, expanded unemployment benefits, aid for small businesses and billions for states that face the prospect of making deep cuts in education and other programs. Obama's much touted tax break for middle- and working-class Americans survived but was scaled back. To tamp down costs, several tax provisions were dropped or sharply cut back. The president also won money for two other administration priorities: information technology in health care, and "green jobs" to make buildings more energy-efficient and reduce the nation's reliance on foreign oil. Negotiators dropped a House provision targeting illegal immigrant workers. The House wanted to require anyone getting a contract paid for with stimulus money to use a government program to ensure employees are citizens or immigrants permitted to work. Many businesses, civil liberties groups and immigration advocates say the program in question is flawed. Others say the tool is needed to control illegal immigration. Final details included the drafting of precise language on trade. The House included a Buy America restriction forbidding the use of foreign steel and other products on infrastructure projects funded in the bill. Negotiators were largely going with a Senate version that is much less restrictive, saying the US would abide by its international trade commitments. One last-minute addition was a $3.2 billion tax break for General Motors Corp. that would allow the ailing auto giant to use current losses to claim refunds for taxes paid when times were good. GM got a $13.4 billion federal bailout late last year and is expected to receive more in 2009 and argued that without the provision, its government-financed turnaround plan could force the company to pay higher taxes. The legislation does not mention GM specifically, but the company has been lobbying hard for the provision for months. Lingering controversy over school-modernization money, a scaled-back tax break for businesses and other issues had forced the delay in final votes on the legislation. Obama's other plan to help the economy, the bank bailout, has not been well received. Treasury Secretary Timothy Geithner announced a plan that could send as much as $2 trillion in public and private funding coursing through the banking system and the broader economy. However, there were doubts about whether the private sector would sign on and criticism that the proposal was short on details. The bailout is built upon the $700 bank bailout fund established under former President George W. Bush last year. Bush's administration has already allocated half the fund, leaving the rest for the Obama administration. |
