December 13th, 2008
10:01 PM ET
5 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. mike

    make sure NO PAY TO PLAY??

    December 13, 2008 05:41 pm at 5:41 pm |
  2. John

    And where does this money come from? The Fed? China?

    December 13, 2008 05:43 pm at 5:43 pm |
  3. Barack Obama.....

    Send me the money soon--I need it.

    December 13, 2008 05:44 pm at 5:44 pm |
  4. Will

    Raising the taxes of those who work hard and giving that money to Demolib fat cats and welfare lib bots is the way to fix this economy.

    Also, another terrorist attack would help and enhansed if he can go on tv and cry about it like his lib predocesor Jimmy Carter.

    Yes, this presidency will be entitled by the true historians as The Carter Vol 2, unfinished lib-socialism America take over.

    All worth it since now demo-liblibs cannot blame Bush for their failure lives. Oh wait, they have not one honest bone in their body, they surely will find some republican great American boogieman to blame, for if they didn't blame someone else and took responsibility for their own lives, they wouldn't be liberal democrats in the first place.

    December 13, 2008 05:44 pm at 5:44 pm |
  5. Howie

    Where in the hell is all this money coming from. It's got to be from taxes, taxes, and more taxes. I can't stand to pay any more. Please stop to handouts.

    December 13, 2008 05:46 pm at 5:46 pm |
  6. steve r. from Wash st.

    This plan will have substance, positive money spent with no smoke and mirrors. Improve our Nation by putting people to work, which will strengthen our economy and our people.

    December 13, 2008 05:56 pm at 5:56 pm |
  7. ran

    Give the money directly to the people and the economy will do just fine.$1 million for ever citizen over 21 yoa should just about do it which would be a lot less expensive.

    December 13, 2008 06:00 pm at 6:00 pm |
  8. Alice Newman Center Harbor NH

    Looks like the name-callers still thinks Bush walks on water ... its his past 8 long years of "borrow and spend" are leaving the country with 2 wars, recession, increasing unemployment with more to come and it is Bush who bailed out Wall Street to the tune of $700 Billion – so their CEO's can have their obscene salaries and bonus thanks to the tax payers.

    Where did Bush bail-out money come from? The Fed prints it. Yes, the Bush deficits are high and Obama will need to let them go higher to keep us from sliding into a depression.

    For those who are not paying attention, Obama still is planning on 95 of middle Americans getting a tax break. If you make over $250,000 – you're going to have to eat in one more night a week – big deal!

    December 13, 2008 06:10 pm at 6:10 pm |
  9. olga

    Simmer down Howie. Obama will help make it all better. I know you're kicking and screaming now, but Obama is likely to turn out to be one of our most competent presidents yet.

    December 13, 2008 06:10 pm at 6:10 pm |
  10. Impeach Obama

    Steve R. from Washington, you must be on welfare or a Obamist Democrat. Only someone who doesn't work for a living would say something like that.

    December 13, 2008 06:11 pm at 6:11 pm |
  11. Albo58

    Typical Democrat Party Plan: throw money at it and hope the problem goes away! And oh yeah, the taxpayers get the privilage of bankrolling this shot in the dark"!!!

    December 13, 2008 06:11 pm at 6:11 pm |
  12. mb

    Where the money comes from is not an issue. The money is printed, just pray that the machines, don't break down or they run out of ink.
    For those who don't want or need any of this money. Why don't you write your congressman or senator and have them remove your name from the list. Your complaining is looking a gift horse in the mouth.

    December 13, 2008 06:13 pm at 6:13 pm |
  13. Jim

    Sooooo........ What are we doing printing more cash? This will all bite us when they are done coddling the rich i.e. auto unions wall street execs etc. Just wait its coming soon...........................

    December 13, 2008 06:15 pm at 6:15 pm |
  14. Janet - Missouri

    The money comes from us borrowing it from China and India. "Charge it" is the cry of the U.S.

    December 13, 2008 06:15 pm at 6:15 pm |
  15. Mark

    You stupid idiots that voted for Obama will be in for a big supprise when he doesnt do all of the things that he promised he would do to bring about change. He is a joke just like all of the rest of the people in Washington. The only thing that will ever help this country is for the American people to take the government back just like they did in the civil war.

    December 13, 2008 06:16 pm at 6:16 pm |
  16. Igor

    I love how some of you think you know what's going on with this country. Sit down. Let Obama handle Bush's mess.

    December 13, 2008 06:20 pm at 6:20 pm |
  17. Smarter than Will

    Funny, Will, how neocon idiots like you who got us into this mess in the first place are already throwing "lib" this and "lib" that around even while the world goes down the toilet created by the hypocricy and lies promoted by the far right the last eight years. If we wouldn't have wasted trillions of dollars and thousands of lives on a snipe hunt in Iraq, maybe the economy wouldn't need to be "fixed" in the first place.

    December 13, 2008 06:21 pm at 6:21 pm |
  18. ITSONNOW

    JUST WANT TO KNOW ONE THING. TO WHAT ADDRESS CAN I SEND THE PAYMENTS THAT MY KIDS AND GRAND KIDS ARE GONNA HAVE TO MAKE. MAY AS WELL FILE BANKRUPTCY AND GET A JUMP ON THE TAB BEFORE THEY GET TOO OLD. PROBABLY QUIT WORK AND GO GET ME SOME FREEBIES LIKE EVERYONE ELSE. NO SENSE IN WORKING TO BAIL OUT THE FOLKS WHO WONT. BESIDES WHERE IS OBAMA GONNA GET THE MONEY. I THOUGHT TARP BROKE THE TROUBLED BANK. MAYBE NOT A GOOD IDEA TO GUSH TOO MUCH ABOUT IDEALISTIC DREAMS OF A PERFECT FUTURE OBAMA STYLE. GET IT.........COMRADES??????

    December 13, 2008 06:23 pm at 6:23 pm |
  19. ITSONNOW

    TO STEVE R

    CONGRATS ON THE NEW TRANSMISSIOM TEAM JOB. REAL COMPANY MAN YOU IS!!!!

    December 13, 2008 06:25 pm at 6:25 pm |
  20. ITSONNOW

    GET IT TRANSMISSION TEAM.....LOLOLOLOLO!!!!!

    December 13, 2008 06:26 pm at 6:26 pm |
  21. Scott

    If we don't spend/invest this money, we will all be on soup lines. WAKE UP

    December 13, 2008 06:27 pm at 6:27 pm |
  22. Dayahka

    The question of how much it's going to cost is irrelevant. The question that is relevant is: What is the money going to be used for? If the money is going to go to existing banks and financial institutions, which are insolvent anyway, and other pals of the Treasury Secretary, then the money is just being thrown away. If the money is going to be used to prop up dead industries, like the US auto industry, then it's another waste. If the money is going to go to make work programs to "fix" highways and bridges, then again it's a waste of money. If the money is going to be used to invest in businesses that will address pressing needs–like a new electrical grid, trains and public transit, food distribution, water supplies, non-petroleum energy sources, making buildings energy efficient, and so on, then it would be money well spent–though one does have to wonder where this money is coming from.

    December 13, 2008 06:29 pm at 6:29 pm |
  23. carol

    I never heard too many folks complaining when Bush was, and still is spending millions in Iraq on this trumped up war!!!!!
    Now Obama is trying to help this country get back on track and all hell is breaking loose because HE wants to SPEND money on things you would think the American people would be more in tune with doing!!!
    There is always money for the WAR MACHINE apparently and no one blinks an eye.... but hey, you look our for the working man and that does not fly, what is wrong with this country???
    I guess when Bush spends money that is just fine, but Obama better not be putting his hand in the cookie jar...who does he think he is...The President Elect or something!!!! P..L..E..A..S..E.

    December 13, 2008 06:29 pm at 6:29 pm |
  24. Vandehey

    Ironic the guy who should be accepting the most blame for the housing crisis, Barney Frank, is still voicing in on housing policy.

    December 13, 2008 06:29 pm at 6:29 pm |
  25. mikey

    Thank God that idiot George W Bush is on his way out! He is the worst president of all time and everyone that voted for him or still supports him are idiots! I hope you all lose your jobs and houses and spend rest of your lives eating out of garbage cans!

    December 13, 2008 06:29 pm at 6:29 pm |
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