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. Barack Obama .....

    just log on to my website and pledge whatever you can ...5 ...10 ...15
    It all helps to restore America!

    December 13, 2008 07:43 pm at 7:43 pm |
  2. JNL

    LOL,

    You folks bought into his lies and voted for him. no live with it. Can't blame me. I told you so>>>>LOL

    December 13, 2008 07:47 pm at 7:47 pm |
  3. George Washingon

    most people get fired when they don't run companies right. so why are you bailing out companies instead of providing them with appropiate managers that have brains. duh?

    December 13, 2008 07:48 pm at 7:48 pm |
  4. Randy

    As long as the money goes the the tax payers I am all for it and to NO more banks.

    December 13, 2008 07:48 pm at 7:48 pm |
  5. G.R.I.T.S - Girl Raised in the South

    Wow, Will and all the other naysayers are on the prowl. Will, liberals value education. Perhaps you should get some before you start posting your gibberish. Hopefully some of the money will go to fund education so your children can spell, use proper grammar and write coherently.

    December 13, 2008 07:49 pm at 7:49 pm |
  6. JNL

    No tax break for anyone. Don't for get HE's the Change. Not the way he will run things. That never changes. The rich are laughing all the way to the bank.

    December 13, 2008 07:50 pm at 7:50 pm |
  7. Alex

    Hey, Keynes economic ideas DO work and can pull out us from the recession. Inject $1T to increase demand (put people to work rather than issue a stimulus checks) and at the same time Feds increasing money supply enough to make US exports competitive. Not bad at all.

    December 13, 2008 07:51 pm at 7:51 pm |
  8. Tomas

    The money will come from the taxing of rich people and the substantial decrease in resources spent in Iraq.

    that will be more than enough money

    December 13, 2008 07:53 pm at 7:53 pm |
  9. Anonymous

    All of you folks who are concerned where the "money comes from" are like someone whose house is on fire saying "jee, I hope they're not wasting any water!". We need to do whatever it takes to jump start the economy. If anyone tries to put up roadblocks, and this goes especially for the Republicans likes the ones who would not help Detroit, Obama needs to go directly to the people and call them out, by name.

    December 13, 2008 07:53 pm at 7:53 pm |
  10. James

    Obama is the reason for global warning. He is always telling us what he is going to do. Does he have a clue as to where this money is going to come from? I am so tire of hearing his change story. This appears to be a third term for Clinton.

    China is the only source he has other than India. We are good customers but what if they call in the debt? If this would happen, we would all be bankrupt.

    The NEW New deal will not work!

    December 13, 2008 07:53 pm at 7:53 pm |
  11. Pro-american

    Pumping money back into our infrastructur is what we need. Getting people back to work, especially many of those construction workers who are being hardest hit, doesn't sound like a bad idea. We should accompany this with curbing our policy on free trade, which has crippled us our foreign debt. Taxing imports would encourage domestic production, which has seriously been lacking due to increased globalization.

    December 13, 2008 07:54 pm at 7:54 pm |
  12. floridajack

    it's going to take a big shovel and lots of work to dig us out of the hole that the bush/cheney/rove/conservofascist ultra-right has left this country in.

    all of those taxes that bush saved all the rich over the last 8 years are going to come due now.

    first, we need to get out of the money sucking war in iraq and then restructure the tax system to increase revenue. will we pay more taxes? if you make over $100,000.00, probably. i know i will (since i make over $250,000.00.) i still voted for pe obama because i am proud to pay taxes for a country i can believe in. yes, this is deficit spending, but if we all bite a little of the pie, we can get through this.

    i am so sick of the right harping about lower taxes!! if you don't want to pay taxes, then stop!! but also stop driving on the roads, stop using airports, ports, schools, and hospitals. don't call the cops when you need law enforcement help. and for god's sake don't call the fire department if your house is on fire or your dad has a heart attack.

    all of you whiney right-wingers need to sit down and shut up. america is headed in a new, better, more humane direction.

    i suggest you bite your tongue and find a way to help pe obama salvage our pride from the toilet that the last administration attempted to flush us down.

    December 13, 2008 07:56 pm at 7:56 pm |
  13. sandee in Portland

    I'm all for paying more taxes but only if it will create jobs for Americans to fill. I don't want to pay more taxes to line the financial institution's pockets with taxpayers money.

    December 13, 2008 07:57 pm at 7:57 pm |
  14. Upstate NY

    HOPE AND CHANGE BABY.....BE CAREFUL WHAT YOU ASK FOR !!!

    December 13, 2008 08:01 pm at 8:01 pm |
  15. john

    This man has to bring country out of 8 years of Bush who will go down asworse president in history

    December 13, 2008 08:02 pm at 8:02 pm |
  16. Lori

    I am so happy that we have Obama coming into office in January. Please save us from the Republicans or at least do all that you can in the next 4 years to get us back on track again.

    The GOP should have nothing to say about Obama's plans. We've seen where they take us when they're in power.

    December 13, 2008 08:02 pm at 8:02 pm |
  17. Susan

    You can start by placing the 1 billion inaugral ball bill, into the stimulus package, instead of into the fluff of the inaugral ball.

    December 13, 2008 08:02 pm at 8:02 pm |
  18. Levar Patterson

    Just bring on the MONEEY!! Make it rain on us Obama!!! Tell the feds to just print it up and drop it from airplanes over the hood!!!! I bet the economy would be strong then!!! Just kidding... I hope the plan that they develop at least gets us out of the ditch!!!

    December 13, 2008 08:05 pm at 8:05 pm |
  19. WOW - Irving, TX and Women for Obama

    i CAN'T WAIT TO SEE THE GREAT WORKS OF PRESIDENT OBAMA...HE IS GOING TO DO A GREAT JOB.

    IF THE MEDIA STOP TRYING TO MAKE HIM DO AND SAY THING AND ALLOW PRESIDENT OBAMA BE HIS OWN MAN.

    YOU DIDN'T TELL GEORGE BUSH WHAT TO DO. A BLACK MAN BECOMES THE LEADER OF THE FREE WORLD YOU WANT TO TELL HIM WHAT TO DO.

    ARE YOU SO SCARED A BLACK MAN IS GOING TO DO A GREAT JOB

    December 13, 2008 08:07 pm at 8:07 pm |
  20. Jeff

    And Dems wanted change...The only change is the is the last two dimes in my pocket...Where's Bush when you need him?

    December 13, 2008 08:11 pm at 8:11 pm |
  21. Dubba

    you should bail out the Detroit Lions while you are at it.

    December 13, 2008 08:15 pm at 8:15 pm |
  22. erika morgan

    The last Democrat in the WH left a tidy sum extra in the bank; as the Republican leaves the WH the government is way in the red. I think this has happened before, often enough to be a pattern. Just saying Republicans are careful with our money does not make it so. Our collective inability to learn from history makes us keep repeating the same mistakes, like some insane colossal oaf.

    December 13, 2008 08:15 pm at 8:15 pm |
  23. chams

    what we really wonder, is how much is obama, paying cnn to control the news, or is cnn really just as stupid as they seem to be?

    December 13, 2008 08:16 pm at 8:16 pm |
  24. Mike

    Wait a minute. Were not every single Democrat in this country bashing Bush because he wanted to put money in the hands of taxpayers so they could spend it? Now B.O. wants to foot the bill for another $500B or more!
    Give me a break. It doesn't matter where the money comes from when you don't have it to begin with.

    The stimulus stinks of more of the same. Isn't that what B.O. preached against?
    We sure are getting the change he promised aren't we?
    The only change I see is that the name of the man running the show is different. That's about it.

    December 13, 2008 08:16 pm at 8:16 pm |
  25. wade

    just because we can print more money, doesn't mean it's worth anything at the end of the day.

    December 13, 2008 08:18 pm at 8:18 pm |
1 2 3 4 5 6 7 8