December 13th, 2008
10:01 PM ET
6 years ago

Source: Obama to meet with economic team on stimulus plan

The economic stimulus plan in the works by President-elect Obama's team could cost $500-$700 billion over two years.
The economic stimulus plan in the works by President-elect Obama's team could cost $500-$700 billion over two years.

CHICAGO, Illinois (CNN) - President-elect Barack Obama will meet next week with his economic team to discuss the economic stimulus package they are developing, a transition aide for the incoming administration confirmed to CNN on Saturday.

The aide said the team also met with Obama in Chicago on Thursday, the same day the president-elect picked former Senate Majority Leader Tom Daschle for two important roles - secretary of Health and Human Services and director of the White House Office of Health Reform.

The Obama team isn't putting a price tag on its economic stimulus plan, which Democratic leaders want to have ready for the new president to sign either on or very soon after Inauguration Day.

Currently, the initial package is expected to cost somewhere between $500 billion and $700 billion over two years.

On the likely agenda: Funds for infrastructure projects, middle class tax cuts, aid to state and local governments, and money for safety net programs such as food stamps and Medicaid.

Obama has described the package as "the largest infrastructure program ... since the building of the Federal Highway System in the 1950s."

Infrastructure is likely to be the most controversial measure. Many critics say such funding isn't the best way to jumpstart economic activity in the near-term because many infrastructure projects take too long to get under way.

A recovery package also might include an extension of the increase on the maximum loan amounts that qualify mortgages for backing from Fannie Mae, Freddie Mac and the Federal Housing Administration, a measure that House Financial Services Chairman Barney Frank, D-Massachussetts, is advocating. On January 1, the limit will drop to $625,500 from $729,750 in the highest-cost housing markets.

–CNN's Jessica Yellin contributed to this report


Filed under: Economy • Obama transition • Popular Posts
soundoff (180 Responses)
  1. Marc PTD

    Boy, the rich are sure going to get soaked during the Obama administration – LOL! Wait a minute. What do you mean that anyone who can affort a PC is now considered "the rich"?

    (You voted for him... now you're going to pay for him.)

    December 13, 2008 04:40 pm at 4:40 pm |
  2. Armando

    Just curious where will he get the money from?

    December 13, 2008 04:46 pm at 4:46 pm |
  3. glittergirl

    This man, our new president, is already working on the job...without pay I guess. That is who I want in my corner.

    December 13, 2008 04:51 pm at 4:51 pm |
  4. MikeH

    Jim-Jones-Republicans will do everything they can to get America to drink their cyanide kool-aid, rather than help Obama try to get America back into economic health.

    If these sicko Republicans can't rule America, than nobody can, and they'll have their 'Ho' Bush try to burn it down, poison the wells and sow the ground with salt.

    It's time Americans completely repudiate these right-wing extremists. If we're lucky, they'll drink their own poison and self destruct. Then, with a re-vitalized science-based education program, we can completely eliminate this irrational hateful ignorance that is the current Republican party once and for all.

    December 13, 2008 04:51 pm at 4:51 pm |
  5. Farrell, Houston, Tx

    Infrastructure is the best way to jump start the economy, we've been putting bandages on this problem for years which needs to stop and further the bandage job is only limited to the same people over and over again. Some of our bridges and highways need to be torn down and rebuilt from the bottom up and that requires millions of workers to do the job. Those who oppose are the same people that have been doing the bandage work for years. We need to stop nursing the problem and fix it for good.

    December 13, 2008 04:54 pm at 4:54 pm |
  6. FAYE, NV

    At this time something needs to happen to help this country.

    December 13, 2008 04:55 pm at 4:55 pm |
  7. Irritated in Fl

    Yep. Osama looking to take away our money and get us farther in debt. We'll soon be UnUnited States of China.

    December 13, 2008 05:02 pm at 5:02 pm |
  8. SOUTHERN HOTTIE

    This is the suckiest holiday season. Ever.

    December 13, 2008 05:06 pm at 5:06 pm |
  9. Griff

    It does not matter what he does! Don't blame Europe... Nobody is going to invest in the USA... Your going to Elect the Jerk. He's your Problem (and nobody else problem)....

    December 13, 2008 05:12 pm at 5:12 pm |
  10. God Help Us

    The printing presses are going to be smoking from being overworked

    December 13, 2008 05:14 pm at 5:14 pm |
  11. Gerry

    I don't understand Obama's push for infrastructure. Infrastructure benifits business, the sworn enemy of the democratic party for over 30 years.

    December 13, 2008 05:19 pm at 5:19 pm |
  12. Bonnie in Colorado

    Now he spending money that doesn't exist!!! What happen to no insiders in his cabinet. His cabinet is nothing but Washington insiders....why? Because he has no experience and would really mess up, so those in the know are there to be his committee. His knowledge of running a country doesn't exist. What a mistake it was to elect him. People blaming Bush need to be blaming Clinton as it was his programs and the DEMS who caused the economic meltdown by putting programs in place when Clinton was Pres.

    December 13, 2008 05:21 pm at 5:21 pm |
  13. Peter

    Oh wow, what a genius plan! Why $500 billion?

    Why not $600 billion? $700 billion? or better yet! $1 trillion!

    Folks, it doesn't take a team of so called 'economic geniuses' to come up with an arbitrary number.

    I truly believe we have to go through a natural economic collapse without any bailout. The sooner we stop bailing out the faster the economy recovers and prices of homes will be back within reason. Oh yeah cost of living too.

    December 13, 2008 05:23 pm at 5:23 pm |
  14. FreeNLovIt

    Please do whatever it takes to get us out of this mess. This is the 21st Century and there's too many things to do. We cant waste time sitting under a tree, grazing with cows.

    December 13, 2008 05:24 pm at 5:24 pm |
  15. FreeNLovIt

    Remember, three things made America: God, Guts and Guns

    December 13, 2008 05:24 pm at 5:24 pm |
  16. Kirsten

    I thought we were in a recession? where exactly is this money coming from? if we have all this money to bail people out, why are we supposedly in a recession?

    December 13, 2008 05:29 pm at 5:29 pm |
  17. RJ, CA

    Dare we ask?

    WHO'S GONNA PAY FOR IT !!??

    And who picked "infrastructure" out of the hat?

    December 13, 2008 05:30 pm at 5:30 pm |
  18. JULI

    We love you and it does not matter what gop and CNN and fox saying we know you are the one they can not see you working on our economic so they want to slow you down we as the people of USA are behand you and we know you are the best just let us know what to do to help

    December 13, 2008 05:30 pm at 5:30 pm |
  19. Christian

    Give $1 billion to the American people and watch how quickly the recession ends short-term, and then spend the rest for long-term growth.

    December 13, 2008 05:35 pm at 5:35 pm |
  20. FreeNLovIt

    WE live in the age of TECHNO. If we can say that we'll stop eating, then we can stop, trying to dig ourselves out of this mess.

    December 13, 2008 05:38 pm at 5:38 pm |
  21. poorfolkz

    Please, in the name of common sense tell me where this amount of money is to come from if we don't quit fighting these stupid wars even if it is spread out over the next two years. We can't keep spending like this and cut taxes too. WHERE IS THE CHANGE!

    December 13, 2008 05:38 pm at 5:38 pm |
  22. Steve NY

    LOL. This would be funny if it wasn't so dang sad.

    December 13, 2008 05:38 pm at 5:38 pm |
  23. Democrat

    What a big build up. We are all in for a big disappointment.

    December 13, 2008 05:39 pm at 5:39 pm |
  24. proudliberal-independent

    huffpost reporting he may want 1 trillion.

    December 13, 2008 05:40 pm at 5:40 pm |
  25. Walt, Belton,TX

    More campaign debts to pay off with my Grandkids wage earnings. I thought Bush had lost the election..........................................................

    December 13, 2008 05:40 pm at 5:40 pm |
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