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. Meka

    For all the POST that DON"T GET IT-–
    1- BUSH GAVE TAX BREAKS TO COMPANIES, TO OUTSOURCE JOBS
    2- OVER 50 MILLION DON'T HAVE HEALTH CARE, AND EVERYTIME THEY RECEIVE MEDICAL CARE, YOU AND I PAY FOR IT
    3- WE SEND 10 MILLION TO IRAQ EVERY MONTH, JUST ASK YOURSELF, WHO IS PAYING FOR THAT (BUSH LIED TO US ALL, AND NOW WE ARE PAYING FOR IT)
    4- BRIDGES, AND ROADS AT IT'S WORST (RESEARCH THE LEVEE'S IN THE US)
    5- AMERICA IS 18th ON EDUCATION
    6- US HAS OVER 20 WORK PROGRAMS (YOU AND I ARE BEING REPLACED ON JOBS)

    JUST TO NAME A FEW!

    December 13, 2008 06:31 pm at 6:31 pm |
  2. fscpuz

    The money will come from the same pot that the $700-840b came to bail out the fat cat banks on wall street!

    December 13, 2008 06:31 pm at 6:31 pm |
  3. I told you so

    Wow... here is a shocker Obama wants 500 to 700 billion maybe even 1 trillion dollars.

    Where is the money going to come from ? I will tell you were the tax payers. America can not afford to pay any higher tax nor can we afford to have democrates congress the congress and white house.

    Look at the sucess of Bill Clinton in the 90's yeah a dem was president but it was a Republican congress that balanced the budget.
    It seems to me that you need good people from both parties not one to fix the problems.

    Six to eight months from now I predict you Obamamaniacs are going to be wishing you had voted differently.

    December 13, 2008 06:32 pm at 6:32 pm |
  4. tom

    Apparently, trying to fix the mess created over the past 10 years scares the hell out of a lot of folks. Take a deep breathe and give the new administration a chance to at least be sworn in! Can anyone tell me where the $6 trillion in debt created over the last eight years ended up? Maybe Carter and the libs spent it, Will? Scary.

    December 13, 2008 06:32 pm at 6:32 pm |
  5. Truth B Told

    Yeah, its time to pay for his votes, too all the people that want a check and don't want to do anything to get it.

    December 13, 2008 06:33 pm at 6:33 pm |
  6. Linda K.

    There's a lot of criticism about what Obama proposes to do. What would you offer as a solution?

    No matter who you blame, we are in a recession and probably speeding toward a depression. Obama hasn't taken office yet, so he didn't create this mess. How do you think he should get us out of this?

    December 13, 2008 06:34 pm at 6:34 pm |
  7. James

    I have a stimulus plan, go back to the way things were in the 50's and 60's when the American dream was about getting fair wages and health care. How did it work then? well there was this thing called tariffs and free trade did not exist. If we had a thing called "free trade" you would see Wall mart stores in China filled with American made products. We all know that's not going to happen. We produce very few things anymore, yet import everything.

    December 13, 2008 06:35 pm at 6:35 pm |
  8. John Galt in Colorado

    I beg you. Someone please find out who is JOHN GALT?

    December 13, 2008 06:36 pm at 6:36 pm |
  9. Pete from Austin Tx.

    Funny how the republicans can find money for two wars but won't spend it on jobs, infrastructure and research for alternative energy. Why is it that our competitors in foreign countries can see the value in manufacturing but some of us in this country can't? Yep, it's going to cost money but sticking your head in the sand or someplace else where the sun doesn't shine won't make the problem go away. As far as blaming bush, Obama is not the president yet so who else

    can you blame. In case you havn't noticed bush is the one that ran us off the cliff.

    December 13, 2008 06:36 pm at 6:36 pm |
  10. The Next Generation

    Amazing what you can get done when you elect intellectual, thinking people instead of crooks, cowboys and cronies.....

    December 13, 2008 06:37 pm at 6:37 pm |
  11. Jason

    NOOOOOOOO!!!! Stop spending money. It isn't a problem of consumption, it is a problem of lagging production. Everyone should read and listen to Peter Schiff, he has been right all along and offers great advice for the future of our country

    December 13, 2008 06:41 pm at 6:41 pm |
  12. purple mountains

    i hope we can come up with a plan that will get things back on track, but we are so far off of it, i just can;\'t understand how it will happen any way soon, i hope i'm wrong.

    December 13, 2008 06:42 pm at 6:42 pm |
  13. Bryan

    This will be paid for partly through tax hikes on the rich which Bush lowered in the first place. Honestly, where is the problem in taking a little extra money away from the people who can afford to make a little less instead of taking it from the people who need every dime they got? This is America, land of opportunity, where is the problem in letting the people without the financial means to grab that opportunity a chance to succeed in life?

    December 13, 2008 06:42 pm at 6:42 pm |
  14. voter

    All these people saying "Dems Raise Taxes"

    well... I'd rather that than borrow from China and make our children pay.

    Learn to live within your means and stop borrowing Baby Boomers!

    December 13, 2008 06:45 pm at 6:45 pm |
  15. John

    I guess the smoke and mirrors are coming back to haunt all of the fools who voted for change.

    December 13, 2008 06:45 pm at 6:45 pm |
  16. alvino

    The Bush Presidency will go down in history as worse than Hoover's. "W" was able to borrow enough from China, Japan and the Saudis to ensure our grandchildren will still be paying for his idiocy.

    December 13, 2008 06:47 pm at 6:47 pm |
  17. Fed up

    Barnie Frank is an idiot. Frank, Dodd, Pelosi, Reid, Obama, Biden, all of them got us into this mess and now their just going to dig us deeper. Every one of them should agree to work for $1 a year until the economy recovers.

    December 13, 2008 06:48 pm at 6:48 pm |
  18. FreeNLovIt

    To howie and wil,

    Clinton snuffed his candle and gave us 1 Trillion surplus. Bush snuffed his candle and gave us 10 Trillion worth of debt, to be prorated and paid off by all the generations after him. Bush has given all of us, the BIGGEST tax increase of our lifetime. The ELEPHANTS have a record of sweet talking to us all to reduce taxes, by putting it on the tabs of future generations. We need quality men and women. The DONKEYS for now, are the lesser of the two evil.

    December 13, 2008 06:50 pm at 6:50 pm |
  19. Fed up

    Public works programs have never worked. Ever. WPA is used as an example of a successful program, but it was really WWII that turned the economy around. The government is incapable of efficiently running ANYTHING. Look at the post office. Look at Amtrak. Shining examples of government efficiency. Get ready because soon the Auto industry is going to be like the post office. Take a number, wait on line, get crappy service, spend way too much money.

    December 13, 2008 06:51 pm at 6:51 pm |
  20. FreeNLovIt

    It doesnt matter who you elect. They are going to spend money, but you want the one that spends it and grows, not spend it and SHRINK, like this past 8 years. You dont want spending and shrink, spending and people, losing their jobs.

    December 13, 2008 06:53 pm at 6:53 pm |
  21. FreeNLovIt

    You want common sense spending to increase growth. We dont have a choice. Your HERO gave us two wars and failed economic policies (no regulation).

    December 13, 2008 06:54 pm at 6:54 pm |
  22. PULEEEZZZ!! lets tell some truth

    MR WILL... you got it all wrong.. Im a Liberal Demo and I work my tail off.. As far as BLAMING others, all I hear are republicans, when faced with their own short sighten uneducated points of view do nothing but cry: WELL ITS CLINTONS FAULT. Will, you need to stop blaming the democrats for the mess we are in. And do you really think McCAIN and that idiot Palin could have saved the mess we are in? I don't think so!!

    December 13, 2008 06:56 pm at 6:56 pm |
  23. Ernie in LA

    Obama is living in a dream world.

    December 13, 2008 06:57 pm at 6:57 pm |
  24. G_in_Seattle

    Go President Obama!
    Do whatever it takes to get our economy going again. We trust you to get us out of this mess that the republicans got us in.

    Obama, 08 and 12

    December 13, 2008 06:57 pm at 6:57 pm |
  25. Maria

    When is Obama going to address who on his staff met with the Governor of Illinois and why?

    December 13, 2008 06:58 pm at 6:58 pm |
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