December 4th, 2009
06:36 PM ET
8 months ago

Officials: President likes plan to use bailout money to pay for jobs

Washington (CNN) - President Barack Obama is leaning toward supporting a congressional Democratic plan to craft a jobs bill by using untapped bailout funds, according to two senior officials familiar with the deliberations.

The officials stressed that no decision has been made by the president, but they noted he is likely to flesh out more details on the emerging economic package next Tuesday when he delivers a speech at the Brookings Institution in Washington.

The new package is expected to be much smaller than the previous $787 billion stimulus plan because of cost concerns at a time of deep government deficits.

Democrats on Capitol Hill and at the White House are considering a jobs package that would include funding for infrastructure projects, direct lending to small businesses, and aid to cash-strapped states.

Using the untapped Troubled Asset Relief Program (TARP) funds has become an attractive option for Democrats because it would not increase the budget deficit since those funds are already allocated.

Republicans have been attacking the president for sharply increasing federal spending during his first year in office, and Democrats already are considering a separate emergency spending package that would increase the deficit even further. That package would include extended unemployment benefits, more health insurance benefits for people who have lost jobs, and food stamps.

White House spokesman Robert Gibbs on Friday hinted to reporters that Obama is "likely" to discuss the use of untapped bailout funds in Tuesday's speech. "The president thinks we should and must do everything in our power to create an environment for job growth and job creation," he said.


Filed under: Jobs • President Obama • TARP
soundoff (16 Responses)
  1. Hammerer

    Obama's favorite solution. Handouts for all.

    December 4, 2009 07:21 pm at 7:21 pm |
  2. Ed

    What? The near TRILLION DOLLAR Spend-u-Loss package didnt create jobs??? *GASP*

    December 4, 2009 07:28 pm at 7:28 pm |
  3. Orson, PA

    That's fine, I'm supporting President Obama.

    December 4, 2009 07:32 pm at 7:32 pm |
  4. Mike, formerly from Syracuse

    No need to stress that there has been no decision by the President. This President doesn't know how to make a decision without months of agonizing over it.

    December 4, 2009 07:50 pm at 7:50 pm |
  5. Joshua College Station Texas

    Isn't that what the bailout is for? To bailout Americans? Of course use the TARP funds. It should not just be for Wall Street bankers.

    December 4, 2009 08:17 pm at 8:17 pm |
  6. Eric

    Why not? He has already spent us into oblivion. It is obvious that Obama only wishes to destroy this country in order to create a society that is only able to be sustained by total government control. This is the radical change that he promised, the destruction of America and the creation of Orwell's 1984, only Obama will be Big Brutha.

    December 4, 2009 08:29 pm at 8:29 pm |
  7. mjm

    How soon before Obama's approval rating goes into single digits?

    2-3 months?

    They just spent $787 billion and got nothing in return.

    Do this....and he will be the dumbest president of all time.

    "The president thinks we should and must do everything in our power to create an environment for job growth and job creation," he said.

    THEN GET A CLUE AND DON'T DO THIS!

    December 4, 2009 08:51 pm at 8:51 pm |
  8. bob jones

    Republicans should not say a word about Obama's spending! Where were they when Bush racked up his trillion dollar war bill? Or when Bush gave out the first bailouts? HYPOCRITES! Besides, imagine if we would have just let things run their course. You think it's bad now?

    December 4, 2009 08:58 pm at 8:58 pm |
  9. m smith

    That's ok the repos will holler and complaine about this too. They have no ideas on anything but sure can complane. We need to do all we can to get this economy jump started. It is improving . We knew it would take time.

    December 4, 2009 09:46 pm at 9:46 pm |
  10. Dale

    Sure he likes the idea. Spend,Spend, Spend that's his motto and all the other dems as well.

    Hey...... Here's a thought – WHY DON'T WE GIVE THE MONEY BACK WHERE WE GOT IT FROM????????? I guess that's not the democratic way.

    I already said they would never pay that money back regardless. Or they'll pay it back through tax increases from American people and still spend the tarp money.

    My god how ignorant are the people of this country.

    December 4, 2009 09:50 pm at 9:50 pm |
  11. Bill

    They just can't stand to see anything left over. Gotta spend, spend, spend!

    December 4, 2009 10:00 pm at 10:00 pm |
  12. Independant Vet

    ???? Why did he give 1.5 Billion to China to build Turbines for wind Power in Texas . Where that created only 30 job's in Texas and 2000 for China . Guess the Banker comes first for Jobs. UH HUH

    December 4, 2009 10:17 pm at 10:17 pm |
  13. Truth-Bomb Thrower

    PURE STUPIDITY! A government cannot PURCHASE economic health and long-term job growth!! It can only be done by the private sector. If it wasn't for Obama's 800 billion dollar spending orgy to payback his election contributors and bribe congress, unemployment would probably be three points lower and dropping like a rock. Obama took a relatively mild cyclical recession and managed to turn it into a full-fledged economic crisis. I'm really starting to wonder if the U.S. economy is going to survive three more years of this moron.

    December 4, 2009 11:23 pm at 11:23 pm |
  14. Barbara

    I want to comment on the President's poll numbers as I missed the opportunity to do so in your previous story. I fully support President Obama. I think he is doing a great job especially after walking into a disastrous economy; two wars-one built entirely on lies and fear mongering and a country whose image around the world was in the gutter. During his campaign President Obama said the real war was in Afghanistan-so why the big shock that he is now focusing on that. He has gotten Healthcare Reform the closest to becoming a reality despite that other party doing absolutely everything it can to stop it. Give him some slack. Support the President. He's done so much more good since he's been in Office than that Bush/Cheney disaster team could even begin to imagine. But then all they imagined were weapons of mass destrutcion.

    December 4, 2009 11:26 pm at 11:26 pm |
  15. arch

    congress and the white house every time they come up with another stupid idea they have to have a new committee to talk about starting a new committee to oversea the other committee. Confusing isn't it! This is one reason we have no money. These bozo do nothing but have meetings to discuss other meetings and on and on. Now he wants to spend more money that we don't have. He is such a fool and has absolutely no idea on how to run a candy stand let alone the country! When are people going to see him for what he truly is, confused and lost. Also, we never did see anything about his time at Columbia. Why did they hide those records. Another thing I have notice with cnn is they are very selective as to what comment pass through their little hands. On an article about Palin and discussion about birth records there was not one comment that reflected the opinion of a non-dem. Afraid to post them. What happen to balance and not bias. Right! Oh, I mean left.

    December 4, 2009 11:30 pm at 11:30 pm |
  16. Jim

    I think this is a good idea. Naturally the Republicabs will be against anything except their failed policies from the past. But if everyone is worried about jobs stimulus of some sort is all that is left to do.

    December 5, 2009 01:03 am at 1:03 am |