President Obama read 'The Polar Express' to a group of 6 to 11-year-olds on Monday.

WASHINGTON (CNN) – A group of children got a Christmas-week visit Monday from President Barack Obama, who handed out cookies and read them "The Polar Express."

The unannounced trip to the Richard England Clubhouse and Community Center, a Boys & Girls Club of Washington, was a break from health care reform, climate change and other issues that have dominated Obama's focus in recent weeks.

About two dozen youngsters ages 6 to 11 sat on the floor as Obama took off his suit coat and read the book aloud from a chair in front, pointing to the pictures and providing dramatic emphasis to some of the lines.

Afterward, sitting forward with his elbows on his knees, Obama exhorted the youngsters to study hard.

"You guys have so much potential," he said. "One of you could be president one day, but it's only going to happen if you stay in school."

Saying they earned snacks, Obama handed out cookies shaped like Christmas trees, maple leaves, gingerbread men and even first dog Bo.

As Obama prepared to leave, one youngster gave him T-shirts for his daughters, Sasha and Malia, then asked the president to come back to play foosball, a table soccer game.

"You a pretty good foosball player?" Obama asked. "You know, I hate getting beat."

"I'll let you win," the youngster replied, and the two exchanged a fist bump.

TOPICS: Health care, Obama

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President Barack Obama on Monday called the Senate vote to end its debate and move toward passing a health care bill 'a big victory for the American people.'

WASHINGTON (CNN) - President Barack Obama on Monday called the Senate vote to end its debate and move toward passing a health care bill "a big victory for the American people."

In remarks at the White House, Obama rejected arguments by Republican opponents of the bill that it will increase the federal deficit.

The non-partisan Congressional Budget Office says the Senate bill will reduce the deficit by $132 billion in the first 10 years, Obama said.

"That argument that opponents are making against this bill does not hold water," Obama said.

The Senate will hold more procedural votes on the health care bill this week, with a final vote scheduled for Christmas Eve.

Washington (CNN) - A government plan to reduce contracting costs will save $19 billion in 2010, President Barack Obama announced Monday.

The savings come from terminating unnecessary contracts, strengthening acquisition management, ending the over-reliance on contractors and reducing the use of high-risk contracts across government, according to documents released with Obama's announcement.

Obama noted government spending on federal contracts more than doubled from 2002, totaling about $540 billion in 2008.

His goal is to cut contracting costs by $40 billion in 2011, the documents said, and the $19 billion savings in 2010 would meet the first-year goal for the program.

At a briefing for journalists before Obama's announcement, a government official outlined one of the ways that contracting costs have been reduced. The U.S. Energy Department's National Nuclear Security Administration has launched a contracting tool in which contractors enter prices, with the lowest price winning the bid, said Jeff Zients, chief performance officer and deputy director of management at the White House Office of Management and Budget.

According to Zients, the program allows contractors to see competing bids and has saved an average of 18 percent per contract. He described it as "eBay in reverse." eBay is an online marketplace where sellers post items for sale in hopes of attracting the highest bid.

Asked if the contract cost savings could affect quality of service, Zients said: "I believe we can save money and improve quality of services we procure."

–CNN's Jennifer Liberto contributed to this story

'He’s a great speaker, a great communicator,' Gov. Schwarzenegger said of the president.

Washington (CNN) – Not every Republican is a critic of President Obama. At least one thinks the president is doing a fine job – at least when it comes to the effort involved in being the country’s chief executive.

Asked to give Obama a grade as the end of the president’s first year in office approaches, Arnold Schwarzenegger, California’s Republican governor, gave Obama high marks.

“When it comes to effort, [Obama] should get a straight A,” Schwarzenegger told CNN Chief National Correspondent John King in an interview that aired Sunday on State of the Union.

“He’s out there with tremendous energy and he’s selling his ideas. And he has great enthusiasm there. He’s a great speaker, a great communicator.”

The one-time Hollywood action star also had some advice for Obama as the president tries to push his agenda through Capitol Hill’s partisanship.

“He has to hang in there,” Schwarzenegger told King, “be tough, just continue on, never give up, eventually he’s going to get all those things done.”

The California governor was echoing the sentiments of New York City Mayor Michael Bloomberg who joined Schwarzenegger in the interview on State of the Union.

Bloomberg, a identified Independent and longtime Obama ally, was more circumspect in his assessment of the president’s first year.

After noting several challenges Obama has been facing since taking office, Bloomberg said he would give the president “a pretty high grade.”

“I hate to use letters,” Bloomberg said. “But [Obama] is working very hard and trying. And he’s got enthusiasm and drive. And I would just urge him to don’t – if he doesn’t get everything he wants – don’t get beaten down, don’t go back into your shell.”

Related video: Schwarzenegger and Bloomberg weigh in on the economy

'He’s a great speaker, a great communicator,' Gov. Schwarzenegger said of the president.

Washington (CNN) – Not every Republican is a critic of President Obama. At least one thinks the president is doing a fine job – at least when it comes to the effort involved in being the country’s chief executive.

Asked to give Obama a grade as the end of the president’s first year in office approaches, Arnold Schwarzenegger, California’s Republican governor, gave Obama high marks.

“When it comes to effort, [Obama] should get a straight A,” Schwarzenegger told CNN Chief National Correspondent John King in an interview that aired Sunday on State of the Union.

“He’s out there with tremendous energy and he’s selling his ideas. And he has great enthusiasm there. He’s a great speaker, a great communicator.”

The one-time Hollywood action star also had some advice for Obama as the president tries to push his agenda through Capitol Hill’s partisanship.

“He has to hang in there,” Schwarzenegger told King, “be tough, just continue on, never give up, eventually he’s going to get all those things done.”

The California governor was echoing the sentiments of New York City Mayor Michael Bloomberg who joined Schwarzenegger in the interview on State of the Union.

Bloomberg, a identified Independent and longtime Obama ally, was more circumspect in his assessment of the president’s first year.

After noting several challenges Obama has been facing since taking office, Bloomberg said he would give the president “a pretty high grade.”

“I hate to use letters,” Bloomberg said. “But [Obama] is working very hard and trying. And he’s got enthusiasm and drive. And I would just urge him to don’t – if he doesn’t get everything he wants – don’t get beaten down, don’t go back into your shell.”

Related video: Schwarzenegger and Bloomberg weigh in on the economy

Washington (CNN) - U.S. Sen. Ben Nelson of Nebraska threw his support Saturday behind the Democrats' health care reform bill, giving the party the crucial backing it needed to avoid a Republican filibuster that would prevent a Senate vote.

The first of a series of votes is set for Monday at 1 a.m. on a so-called manager's amendment, consisting of amendments crafted in the last one and a half weeks by Senate Majority Leader Harry Reid of Nevada.

At the request of Republicans, the entire amendments package - 383 pages - was being read Saturday, for hours, on the Senate floor.

The Senate could vote on the entire bill - a top priority of President Barack Obama - before Christmas.

Sen. Mitch McConnell, the Senate Republican leader, said the latest version of the Senate health care bill "is a legislative train wreck of historic proportions."

"If they were proud of this bill they wouldn't be doing it this way," McConnell said. "They wouldn't be jamming it through in the middle of the night on the last weekend before Christmas."

McConnell said the legislation "will have a profound impact on our nation. This is not renaming a post office. Make no mistake, this bill will reshape our nation and our lives."

Reid and Sen. Charles Schumer of New York spent most of Friday trying to answer concerns by Nelson, who had been the lone Democratic holdout because of his objections to public funding for abortions. According to Schumer, the three men finally shook hands on a deal at 11 p.m.

Nelson's backing gave the Democrats the crucial 60 votes needed to move the bundle of recent amendments, which involved a spate of compromises, to the Senate floor.

"Change is never easy, but change is what's necessary in America today. That's why I intend to vote for cloture and for health care reform," the Nebraska Democrat told reporters.

Cloture is the procedure that allows senators to place a time limit on consideration of a bill or other matter, and thereby overcome a filibuster.

Nelson warned, however, that if there are changes to the health bill when House and Senate leaders meet to resolve their differences, he will withdraw his support. The House has passed a different version of the bill.

Obama said the Senate's health care reform bill would be the largest deficit-reduction measure in a decade.

"We are on the cusp of making health care reform a reality," he said.

"With today's developments, it now appears that the American people will have the vote they deserve on genuine reform that offers security to those who have health insurance and affordable options for those who do not."

According to the Congressional Budget Office, the legislation would offer a decrease in the deficit of $132 billion over the first decade, and more than $1 trillion in the 10 years after that, Obama said at a brief news conference.

The new cost for the revised Senate bill is $871 billion, the CBO said. The previous price tag was $848 billion.

Obama's was one of a flurry of press briefings held Saturday after Nelson's announcement.

Nelson, a social conservative who opposes abortion, did not want taxpayer funds to pay for the medical procedure. One of his main requests was that states that offer insurance offer at least one plan without the abortion option.

Two liberal U.S. senators who had not committed to supporting the health bill also announced Saturday that they would vote "yes" on its passage.

Sen. Bernie Sanders, a Vermont Independent who caucuses with the Democrats, said he changed his stance because the measure now contains provisions for new community health centers. Sen. Sherrod Brown, D-Ohio, said he favored the insurance reforms in the legislation.

Neither man is totally pleased, but they told CNN it's a good first step.

Sen. Barbara Boxer, D-California, who was involved in some of the talks with Nelson, said she's satisfied that the language of the agreement achieves its goal.

"My goal was to try to reach some compromise so we could move forward on health care, where the basic premise was we could separate federal funds from private funds. I think we achieved that."

Sen. Bill Nelson, D-Florida, agreed, saying the deal follows the principles of the Hyde amendment, which prevents federal funds from being used for abortions.

"Anyone who is in the exchange who also gets a federal subsidy because they're poor, if they choose a private insurance policy and want any kind of abortion coverage, they have to write that part of the premium from their own personal funds," the Florida senator said.

The health bill proposes a health insurance exchange for those unable to afford health coverage or don't have coverage. No federal funds could be used to cover abortions for people participating in the exchange, the bill says.

In addition, under national plans that would be administered by the Office of Personnel Management, there has to be, if a state chooses those, at least one that does not offer abortion coverage.

– CNN's Dana Bash, Brianna Keilar, Craig Broffman and Ben Barrett contributed to this report.

According to the Congressional Budget Office, it will offer a decrease of $132 billion over the first decade, and more than $1 trillion in the 10 years after that.

Obama near climate change accord with China, others.

COPENHAGEN, Denmark (CNN) - President Obama is in the final stages of closing a climate change deal with China and other key nations that is expected to be sealed before the president heads home from the Copenhagen summit late Friday, according to a senior administration official.

A second source, an administration official as well, adds that the president is about to announce a "meaningful agreement."

This official acknowledged that "it's not sufficient to combat the threat of climate change but it's an important first step."

The first official told CNN Obama was going over an "approved text" with Chinese officials that would set a non-binding goal of reducing the Earth's temperature by 2 degrees Celsius over the next decade.

The second official added: "We entered this negotiation at a time when there were significant differences between countries. Developed and developing countries have now agreed to listing their national actions and commitments, a finance mechanism, to set a mitigation target of 2 degrees Celsius and to provide information on the implementation of their actions through national communications, with provisions for international consultations and analysis under clearly defined guidelines."

The second official concluded: "No country is entirely satisfied with each element but this is a meaningful and historic step forward and a foundation from which to make further progress. We thank the emerging economies for their voluntary actions and especially appreciate the work and leadership of the Europeans in this effort."

Gibbs attempted to gain access for American reporters after Chinese cameramen pushed into the room.

(CNN) – Officials and journalists attempting to enter the room where President Obama and Chinese Premier Wen Jiabao were planning to meet in Copenhagen were caught in a chaotic scene that left nearly the entire U.S. press pool outside, and reportedly nearly prevented White House Press Secretary Robert Gibbs and National Security Council Chief of Staff Denis McDonough from entering.

Gibbs attempted to gain access for American reporters after Chinese cameramen pushed into the room, and Chinese security behind then blocked the entrance to U.S. media attending the event.

Told "no photo" and "no press," Gibbs responded: "Hold on. Hold. I've got to get my American guys in because everybody else got in…. My guys have to get just like your guys got in. This is a joint meeting, and my guys get in or we're leaving. …"

One photographer was able to gain access to the room. No U.S. television or print reporters were allowed in to cover the event.

Obama: U.S., Russia 'quite close' to forging new START treaty.

COPENHAGEN, Denmark (CNN) – President Barack Obama said the United States and Russia are "quite close" to forging a new nuclear disarmament treaty in a "timely fashion."

Obama met with Russian President Dmitry Medvedev in a side meeting at the climate change summit here Friday, and the two made brief public comments. The Strategic Arms Reduction Treaty, or START, expired earlier this month, and both countries were working to develop a new pact.

"Obviously our main concern in coming to Copenhagen was to try to move forward with an accord on the issue of climate change. But on the margins of this meeting we thought it was important to continue to build on the excellent relationship that our two governments have developed over the last several months," Obama said.

"Our main focus today was the START treaty - the new START treaty that we have been negotiating. We've been making excellent progress. We are quite close to an agreement. And, I'm confident that it will be completed in a timely fashion. And I just want to thank President Medvedev for being a very effective partner in these negotiations. "

Medvedev, noting that the priority in Copenhagen was the climate summit,
said it would have been "unreasonable" not to take the opportunity to discuss
the START negotiations.

"Our positions are very close and almost all the issues that we've been
discussing for the last month are almost closed. And there are certain
technical details which we can encounter (in) many agreements which require
further work. I hope that we will be able to do it in a quite brief period of
time. The outcome of our efforts will reflect good and close spirit of our
relationship that we have established with the new U.S. administration,"
Medvedev said.

Copenhagen, Denmark (CNN) - President Obama spoke in Copenhagen on Friday to push for an agreement with world leaders on climate change.

The meeting at the United Nations Climate Change Conference included nearly 20 other heads of state and government leaders.

The following is a transcript of Obama's prepared remarks:

Read full transcript

Delegates at the U.N. Climate Change Conference are 'running short on time' to reach agreement on a deal, U.S. President Barack Obama said Friday.

Copenhagen, Denmark (CNN) - Delegates at the U.N. Climate Change Conference are "running short on time" to reach agreement on a deal, U.S. President Barack Obama said Friday.

"There is no time to waste," Obama said. "Now I believe it's the time for the nations and the people of the world to come behind a common purpose. We are ready to get this done today, but there has to be movement on all sides."

Earlier Obama met with nearly 20 other heads of state and government at the summit in Copenhagen, Denmark to hammer out an agreement on climate change, including French President Nicolas Sarkozy, British Prime Minister Gordon Brown, Russian President Dmitry Medvedev and Brazilian President Lula da Silva.

China was being represented at the meeting by Vice Foreign Minister He Yafei.

Full story

Obama committed to going to climate summit.

WASHINGTON (CNN) - President Barack Obama will travel to Copenhagen,Denmark, Thursday evening to attend the U.N. Climate Conference as planned,despite growing uncertainty that the talks will lead to an agreement, White House spokesman Robert Gibbs said.

"The president is going to travel in hopes of making progress for a strong operational agreement" on climate change, Gibbs said. "There are no changes in the president's plans."

The statement came amid rumors from Copenhagen that Obama would not come if talks deteriorated and it appeared no agreement could be reached.U.S. officials in Copenhagen and at the White House confirmed talks brokedown Wednesday after the Chinese delegation rejected U.S. demands that China, along with other nations, be required to provide "transparency" - proving a commitment to cutting emissions.

U.S. Secretary of State Hillary Clinton said Thursday morning in Copenhagen that "we have presented and discussed numerous approaches to
transparency with a number of countries and there are many ways to achieve transparency which would be credible and acceptable. But there has to be a willingness to move towards transparency in whatever form we finally determine is appropriate. So if there is not even a commitment to pursue transparency, that's kind of a deal breaker for us."

Gibbs said the Chinese "balked" at the "strong transparency requirement,"though he "hoped that they would reconsider."

The Obama administration is trying to lower expectations for the president's visit. The last time he traveled to Copenhagen - in October to try to win the 2012 Olympic bid for Chicago - he came back empty-handed. Regarding this trip, Gibbs said, "coming back with an empty agreement would be far worse than coming back empty-handed."

The agreement Obama is hoping for out of Copenhagen would not be a treaty, nor would it be legally binding. Gibbs acknowledged it would be "a political agreement that would lead to a treaty" later.

A new interactive holiday video from Organizing for America, President Obama's political arm at the Democratic National Committee, lets viewers customize the on-screen holiday card "signed" by the president with their own name and choice of holiday greetings. (The messages are pre-selected by OFA, then chosen from a drop-down list. The name field is open.)

As 2009 comes to an end, about half of the country is giving President Barack Obama a thumbs up.

Washington (CNN) – As 2009 comes to an end, about half of the country is giving President Barack Obama a thumbs-up.

According to a CNN Poll of Polls compiled and released Thursday, Obama's approval rating in polls taken in the past week averages out to 50 percent, with 44 percent saying they disapprove.

"Obama's average approval rating was at 52 percent or 53 percent every week from early October to mid-November. Each week since then, his average approval rating has been between 48 percent and 50 percent," says CNN Polling Director Keating Holland. "The bad news for the White House is that his current rating is down by roughly 15 points since the start of the year. The good news is that it appears to have stabilized as the end of the year approaches."

Since scientific polling began more than seven decades ago, only one popularly-elected president has ended his first calendar year in office with an approval rating below 50 percent.

Ronald Reagan's approval rating dipped to 49 percent in December 1981, and stayed below 50 percent for two years - but he won re-election in a landslide, says Holland. By contrast, Jimmy Carter and the elder George Bush had approval ratings well over 50 percent in December of their first year in the White House, but lost their re-election bids. "So the first-year approval ratings don't appear to have any predictive value when it comes to re-election prospects," said Holland.

The CNN Poll of Polls on how Obama is handling his job overall consists of an average of six surveys conducted within the last week: NBC/Wall Street Journal (Dec. 11-14), the Gallup tracking (Dec. 13-15), AP/GfK (Dec. 10-14), ABC/Washington Post (Dec. 10-13), Pew (Dec. 9-13), and Fox (Dec. 8-9). The Poll of Polls does not have a sampling error.

Four of the six surveys in the overall Poll of Polls also asked about the president's handling of the economy, the number one issue on the minds of Americans. According to an average of those four polls, 45 percent approve of how Obama's dealing with the economy, while half of the public disapproves.

Four of the six surveys also asked about Afghanistan. According to the CNN Poll of Polls, 50 percent, on average, approve of how Obama's handling that conflict, with 43 percent disapproving.

Three of the surveys asked how the president's dealing with health care reform. According to the CNN Poll of Polls, 44 percent approve of Obama's handling of health care, with 51 percent giving him a thumbs down.

The president's approval drops even lower for the budget deficit. Three of the surveys asked about the deficit, and the CNN Poll of Polls indicates 37 percent approve of Obama's handling of the issue, with 54 percent disapproving.

–Follow Paul Steinhauser on Twitter: @psteinhausercnn

Washington (CNN) - It's known as the "greatest deliberative body in the world," and with health care reform on the docket, the Senate's debate on the contentious bill could last through Congress' Christmas recess.

The goal, President Obama recently said, is for the Senate to pass legislation by Christmas - though opposition from Republicans could derail the hope.

While the House has wrapped up much of its business for the year and has already passed its form of the reform bill, senators have been working around the clock and on weekends.

With the push to get a reform bill passed, Senate Majority Leader Harry Reid, who controls the legislative body's calendar, could keep the Senate in session into at least part of the break, which is set when the Senate is done with its business.

One senator has already prepared for the possibility.

Full Story:

Obama met with Senate Democrats Tuesday to discuss the health care bill.

Washington (CNN) - A new national poll suggests that Americans think the health care reform proposals moving through Congress would bring higher costs and a lower quality of care.

According to a ABC News/Washington Post survey released Tuesday evening, 53 percent of the public see higher costs for themselves if the proposed changes become law than if the current health care system stays the same. The poll also indicates that only 37 percent say the quality of their health care would be better under the proposed changes.

The nearly one in five adults in the country that are currently without insurance are among those who presumably would gain the most from health care reform than includes an expansion of those covered. But the survey indicatates that those without insurance are divided on whether their health care would be better if the current system was reformed.

A CNN/Opinion Research Corporation nation survey released last week had similar findings, with 75 percent of people questioned saying the senate health care bill would not help their family. The poll also indicated that 85 percent of Americans think the bill, if it became law, would increase their taxes and nearly 8 in 10 say it would increase the country's budget deficit.

"Older Americans are least likely to think that a health care bill will help them personally," says CNN Polling Director Keating Holland. "Only 14 percent of senior citizens think they would be helped by the bill. Among people under 50, that rises to 26 percent."

The ABC News/Washington Post poll was conducted Thursday through Sunday, with 1,003 adults questioned by telephone. The survey's sampling error is plus or minus 3 percentage points for the overall sample.

– CNN Deputy Political Director Paul Steinhauser contributed to this report

Follow Paul Steinhauser on Twitter: @psteinhausercnn

Georgia couple arrived at the White House on the wrong day for a tour recently and got much more than they bargained for.

Hogansville, Georgia (CNN) - A Georgia couple arrived at the White House on the wrong day for a tour recently and got much more than they bargained for.

After being screened by the Secret Service, Harvey and Paula Darden of Hogansville, Georgia, were led into a lavish invitation-only breakfast where they met the president and the first lady.

How the couple was able to get into the White House event without being on the guest list was called "dumb luck" by the Dardens. The White House is calling it a "nice gesture" and has been explaining how this incident is nothing like the breach of security that took place when Tareq and Michaele Salahi infamously crashed the Obamas' state dinner.

The Dardens got into the White House on Veterans Day, weeks before the Salahis' infamous party crashing. The couple mistakenly arrived a day early for a tour that was booked by their congressman.

Full story

President Barack Obama wrote a personal letter to North Korean leader Kim Jong Il.

Washington (CNN) –  President Barack Obama wrote a personal letter to North Korean leader Kim Jong Il that a U.S. envoy delivered, a senior U.S. official said.

Stephen Bosworth, U.S. special envoy for North Korea, delivered the letter to the North Korean leader during a three-day visit to North Korea last week, the official said.

The official declined to be identified because of the sensitivity of the issue.

The Obama administration is considering ordering a debt commission after Sens. Gregg and Conrad proposed a similar move last week.

Washington (CNN) - CNN has learned President Obama is seriously considering an executive order to create a bipartisan commission that could weigh sweeping tax increases and spending cuts to popular programs like Social Security and Medicare in order to try slash the soaring federal deficit.

Documents obtained by CNN show that top advisers to the President have been privately weighing various versions of a commission and there are differing opinions about how to structure it. Officials say that some inside the administration are pushing for a narrow mandate because it's too complicated to tackle reform of the tax system and various popular federal spending programs all at once.

"Each major category of fiscal policy - Social Security, Medicare, discretionary spending, revenues - raises a complex and idiosyncratic array of policy problems and prescriptions," according to the documents detailing some of the administration's deliberations. "Achieving consensus on any one of these issues - much less all of them simultaneously - may be more than the political system can reasonably accommodate."

But officials told CNN that other advisers to the president are pushing for the commission to have a broad mandate to put all of these big issues "on the table" at the same time.

"The nation's unsustainable fiscal course is the result of imbalance across the budget as a whole, not any component in isolation," according to the documents, which are marked "Preliminary and Pre-Decisional - Not For Distribution".

"And, in both the 1990 and 1993 budget deals, the final compromises encompassed both revenue enhancements and spending reductions," add the documents. "Such deals, touching on both sides of the budget ledger, perhaps offer the best way of achieving a bipartisan deficit reduction package."

The Obama administration's deliberations are taking on some urgency behind closed doors because the President is facing heavy pressure from Sens. Kent Conrad, D-North Dakota, and Judd Gregg, R-New Hampshire, to appoint a commission. Conrad and Gregg, along with a group of moderates led by Sen. Evan Bayh, D-Indiana, have been threatening to block a large increase in the nation's debt ceiling unless the president agrees to a commission.

Related: Leading senators call for fiscal commission

While some critics charge a commission would be a cop-out because it would punt congressional decisions to an outside panel, the senators pushing the plan say the current system is broken, and that it will take a new mechanism to enact the wrenching changes that will be needed to get the budget back into balance.

"We are on a path to bankruptcy as a nation, and it's that simple," Gregg said last week as he and Conrad officially introduced legislation that now has 33 co-sponsors.

The Conrad-Gregg bill, which would need to pass both chambers of Congress and then be signed into law by Obama, would create a deficit commission with 10 Democrats (eight members of Congress and two Obama officials) and eight congressional Republicans.

The panel would have several months in 2010 to study the problem and then vote after the midterm elections on a reform package that could include dramatic tax hikes and spending cuts. If 14 of the 18 members approve the package, giving it a bipartisan nod, it would force an automatic up-or-down vote in both the House and Senate on whether to implement the recommendations.

If Obama signed an executive order to create the commission, however, it would not have the full force of law and thus the outside commission could not mandate that Congress vote up-or-down on the recommendations. This would also give the president more wiggle room to ignore the recommendations if the commission suggests, for example, raising taxes on people earling less than $250,000 a year, which would break an Obama campaign promise.

Some administration officials also like the executive order idea because it could help the White House place more Obama officials on the commission to give the president more control.

But the documents obtained by CNN note that option also brings political risk: "The promise of greater say over the deliberations and final product of the commission, but the peril of being more deeply implicated in the event of failure."

Washington (CNN) - President Barack Obama said Tuesday that "it's clear" Congress is "on the precipice" of passing a sweeping health care reform bill.

"There are some differences that still have to be worked on," he said at the White House. But "there is broad consensus around reforms."

The president said Congress "simply cannot let differences" over specific elements of the plan prevent passage of a bill. "There's too much at stake," he warned.

"Any fair reading of this bill" meets the administration's criteria of lowering costs and expanding coverage while not adding to the federal deficit, he claimed.

"I'm feeling cautiously optimistic we can get this done," he said.

Obama made his remarks shortly after meeting with Senate Democrats.

Full story

Sen. Evan Bayh is urging President Barack Obama to veto an end of the year government funding bill that fellow Democrats pushed through the Senate this past weekend.

Washington (CNN) –  Sen. Evan Bayh is urging President Barack Obama to veto a huge end of the year government funding bill that fellow Democrats pushed through the Senate this past weekend.

On a mostly partisan vote of 57-35, the Senate approved the compromise omnibus spending plan worked out with the House, which passed it last week. The measure now goes to President Barack Obama to be signed into law.

The senator from Indiana was one of three Democrats, joining Russ Feingold of Wisconsin and Claire McCaskill of Missouri, to vote against the spending bill, which is needed to keep the federal government running as of next week.

"The president didn't create this mess, but Congress must be restrained," Bayh said in a statement released Monday. "We have to take the credit card away from the politicians who just want to spend, spend, spend. More than one trillion dollars of spending was just way too much. This may not win me a popularity contest in the halls of Congress, but it's the right thing to do."

In March, Bayh was one of only two Democratic senators to vote against a similar omnibus spending bill that passed Congress. Bayh also urged the president to veto that spending bill, which funded the government for the remaining months of the current fiscal year.

Bayh, who's up for re-election next year, has increasingly parted ways with his caucus on Senate votes. Last week he was among a handful of Democrats to vote in favor of a health care reform amendment that would have strengthened restrictions on the use of federal taxpayer funds for abortions - an amendment that was vehemently opposed by liberals. Bayh's also opposed to a clean energy bill being pushed by Democrats.

Last year, Bayh was a major supporter of Barack Obama's presidential campaign and was considered a contender for the vice presidential nomination that eventually went to fellow senator Joe Biden.

"My main message in today's meeting was very simple: America's banks received extraordinary assistance from American taxpayers to rebuild their industry," Obama said. "Now that they're back on their feet, we expect an extraordinary commitment from them to help rebuild our economy."

Updated: 1:18 p.m.

Full story

Washington (CNN) - Cabinet members need to leave their BlackBerrys at the door in a basket when meeting with President Obama. Above: a White House video reveals the less than high-tech solution used to ensure Hillary Clinton doesn't leave with Eric Holder's phone.
(Photo Credit: White House)

Washington (CNN) – On the eve of a White House meeting where President Obama is expected to encourage the nation’s largest lenders to loosen up credit, personal finance expert Suze Orman says Obama should not get all of the blame for how some banks have behaved in the last year.

“It’s not all the president’s fault,” Orman said Sunday on CNN’s State of the Union.

“You can pass every law that you want. You can try to do anything in the world – give these institutions money - if they don’t help their customers, what are you going to do about it?” Orman told CNN Chief National Correspondent John King.

Related: Obama adviser slams Wall Street

“I think a big part of this problem falls right back to the banks especially those with credit cards,” Orman also told King.

Asked what she would say if she had a seat at Monday’s meeting with the heads of the nation’s largest banks, Orman let loose.

“I would say: ‘Bankers, what in the world is the matter with you? You took taxpayers’ dollars in order to survive. You are giving out bonuses now. You are acting like nothing is wrong. Some of your stocks have increased in value from their low[s]. However, you are not serving the people that you should be serving.

“In my opinion, bankers,” Orman continued, “you are serving your own bottom lines and shame on you! And if you don’t get your act together, if you don’t start helping those that need loan modifications, if you don’t start helping those that need [small business] loans. . . if you don’t help those that really need you, then we’re going to have to do something about it.’”

Orman added that she did not know what the solution was to get banks to loosen up credit for consumers and small businesses but she suggested the possibility of a windfall profits tax. That, she said, might provide the incentive necessary to get lenders to do what the White House and many members of Congress want them to do to help turn the economy around.

Washington (CNN) – On the eve of a White House meeting where President Obama is expected to encourage the nation’s largest lenders to loosen up credit, personal finance expert Suze Orman says Obama should not get all of the blame for how some banks have behaved in the last year.

“It’s not all the president’s fault,” Orman said Sunday on CNN’s State of the Union.

“You can pass every law that you want. You can try to do anything in the world – give these institutions money - if they don’t help their customers, what are you going to do about it?” Orman told CNN Chief National Correspondent John King.

Related: Obama adviser slams Wall Street

“I think a big part of this problem falls right back to the banks especially those with credit cards,” Orman also told King.

Asked what she would say if she had a seat at Monday’s meeting with the heads of the nation’s largest banks, Orman let loose.

“I would say: ‘Bankers, what in the world is the matter with you? You took taxpayers’ dollars in order to survive. You are giving out bonuses now. You are acting like nothing is wrong. Some of your stocks have increased in value from their low[s]. However, you are not serving the people that you should be serving.

“In my opinion, bankers,” Orman continued, “you are serving your own bottom lines and shame on you! And if you don’t get your act together, if you don’t start helping those that need loan modifications, if you don’t start helping those that need [small business] loans. . . if you don’t help those that really need you, then we’re going to have to do something about it.’”

Orman added that she did not know what the solution was to get banks to loosen up credit for consumers and small businesses but she suggested the possibility of a windfall profits tax. That, she said, might provide the incentive necessary to get lenders to do what the White House and many members of Congress want them to do to help turn the economy around.

Larry Summers took issue Sunday with complaints from Wall Street about Democratic plans for more financial regulation.

Washington (CNN) – A top economic adviser to President Obama said Sunday that Wall Street should not be resisting Democratic efforts to impose new financial regulations in the wake of last year’s financial crisis.

“It was irresponsible risk-taking that brought the economy to the brink of collapse,” Lawrence Summers, the Director of Obama’s National Economic Council, said about Wall Street Sunday on CNN’s State of the Union. “It was their irresponsiblilty in many cases that brought the economy to collapse. And, frankly ... it wasn’t the first time.

Watch: Summers slams Wall Street

“And they don’t get, in some cases, that they wouldn’t be where they are today - and they certainly wouldn’t be paying the bonuses they’re paying today - if their government hadn’t taken extraordinary actions. Extraordinary actions, not frankly with the motivation of helping them, but with the motivation of helping the economy but of which they were nonetheless the beneficiary.”

Summers also told CNN Chief National Correspondent John King that it was “wrong” for Wall Street to be “complaining about serious regulation directed at making sure this never happens again.”

“For firms that have benefited from taxpayer support to be complaining about the government burdening them is, frankly, a bit rich,” Summers also said Sunday.

After receiving so much help from the public in the form of support from the federal government in the past year, Summers said “now the financial community’s got to think about its obligations to the country.”

Summers identified preventing another near-collapse of the entire financial system, improving the flow of credit, preventing foreclosures, and improving lending to small businesses as areas the president might discuss with the heads of some of the nation’s largest banks in a meeting set for Monday.

“The president is going to focus on what the bankers can do for their country, what obligations they should feel,” Summers told King.

New York (Fortune) – President Obama is about to give the banks an earful about lending. But he may be a day late - and $116 billion short.

Obama will meet Monday with top executives of some of the nation's biggest lenders.

CEOs of 12 banks are expected, including the heads of American Express (AXP, Fortune 500), Bank of America, Capital One (COF, Fortune 500), Citigroup, JPMorgan Chase, Morgan Stanley, and Wells Fargo.

The president is expected to say he wants to see more loans for the sake of economic recovery. He'll also urge execs to curb compensation, to stop gouging customers with high credit card rates and hidden overdraft fees, and to support financial reform efforts.

Full story

"Our economy is growing again," the president said in his weekly radio and Web address. "The flood of job loss we saw at the beginning of this year slowed to a relative trickle last month. These are good signs for the future, but little comfort to all of our neighbors who remain out of a job. And my solemn commitment is to work every day, in every way I can, to push this recovery forward and build a new foundation for our lasting growth and prosperity."

Obama said his recent proposals to provide additional tax cuts and lending for small businesses, and his support of the unemployment insurance extension will help keep the economy moving in a positive direction.

Obama also said Friday's passage of the financial reform legislation will make the U.S. economy less vulnerable to future problems.

"Yesterday, the House passed comprehensive reform legislation that incorporates some of the essential changes we need, and the Senate Banking Committee is working on its own package of reforms," Obama said. "I urge both houses to act as quickly as possible to pass real reform that restores free and fair markets in which recklessness and greed are thwarted; and hard work, responsibility, and competition are rewarded – reform that works for businesses, investors, and consumers alike."

"We can't afford to let the same phony arguments and bad habits of Washington kill financial reform and leave American consumers and our economy vulnerable to another meltdown,' He said.

At the White House, even Bo gets a stocking.

(CNN) – Santa won't forget the nation's first dog this Christmas, according to Michelle Obama.

In a special holiday interview, the first lady told Oprah Winfrey that Portuguese water dog Bo has a stocking, just like every other member of the Obama family. "Santa loves Bo too," she said.

President Obama - who has his own stocking, just like daughters Sasha and Malia - told Winfrey about his favorite Christmas gift as a child. "I do remember the one time I met my father he was visiting during Christmas and he gave me a basketball," said the president. "And - the degree to which I came to love basketball - it wasn't until much later in life that I realized, 'Actually, he gave me that basketball.' I think there was some cause and effect there in terms of the degree to which I just ended up taking up the sport as a kid who didn't know his dad."

The Obamas' full White House sitdown with Winfrey is set to air Wednesday.

Caucus Chairwoman Rep. Barbara Lee and Rep. Emanuel Cleaver wrote Obama to plead for help for minorities..

Washington (CNN) – Members of the Congressional Black Caucus called on President Obama Friday to address the skyrocketing unemployment rate facing minorities - especially African-Americans and Latinos - and greater economic conditions plaguing low-income communities.

"Our job is to make sure the legislation that gets to the president's desk responds to the degradation and the crisis in our community," said Rep. Sheila Jackson Lee, D-Texas, at a Friday news conference. "Our community is bleeding. And we are the worst hit."

According to the Bureau of Labor Statistics, the unemployment rate in November 2009 for blacks is at 15.6 percent - and 12.7 percent for Hispanics. In comparison, the rate for whites is 9.3 percent.

The latest job numbers show that a drop in the U.S. unemployment rate dropped from 10.2 percent to 10 percent in November.

"Our Nation has suffered substantial unemployment and underemployment over a prolonged period, which has imposed significant economic and social costs, particularly in communities of color," the December 9 letter, from Chairwoman Barbara Lee and Rep. Emanuel Cleaver to Obama, stated. "We appreciate your attention to these prescriptive measures and look forward to working with you."

Full Story:

Washington (CNN) – Americans are more concerned with lowering the massive budget deficit than boosting the ailing economy, according to a new national poll.

Fifty-six percent of people questioned in a CNBC survey released Friday morning say President Barack Obama and Congress should worrry more about keeping the budget deficit down even if that means delaying the economic recovery. That's 23 points higher than the 33 percent who feel boosting the economy should be the top priority, even if that means larger deficits now and in the future.

The poll also indicates that by a 54 percent to 33 percent margin, Americans prefer using the estimated $200 billion in leftover TARP funds for deficit reduction rather than for more stimulus spending.
TARP, or the Troubled Asset Relief Program, was created last year by the Bush administration to bail out American banks, financial institutions and auto makers that were in danger of collapsing in the recession. Earlier this week, Obama outlined a new proposal to boost jobs and give more help to consumers and small businesses, and possibly pay for such a plan with unused bailout funds. Congressional Republicans object to such a move.

A CNN survey conducted last month indicated that two-thirds of the public thinks the government should not run a deficit, even when the country's in a recession and at war.

"Only 30 percent say it's OK for the government to run a deficit in a time of war and economic turmoil," says CNN Polling Director Keating Holland. "Even among Democrats, 59 percent don't like the idea of federal deficits."

The CNBC poll was conducted December 1-3, with 808 adults questioned by telephone. The survey's sampling error is 3.5 percentage points.

–CNN Deputy Political Director Paul Steinhauser contributed to this story

'I liked what he said,' former Alaska Gov. Sarah Palin said of the president's Nobel acceptance speech.

(CNN) – Sarah Palin had some rare praise Thursday for President Obama after the president delivered his Nobel Peace Prize acceptance speech in Oslo. But the former Republican vice presidential nominee added that she would like to see the president act more like his predecessor, George W. Bush.

"I liked what he said," Palin told USAToday in an interview after the speech.

Palin said the president's remarks had a familiar ring. "I thumbed through my book quickly this morning to say 'Wow! That really sounded familiar.' because I talked in book too about the fallen nature of man and why war is necessary at times."

Related: War sometimes justified, Obama says

But Palin suggested Obama could learn a few things from former President Bush.

"We have to stop those terrorists over there," she told the paper. "We've learned our lesson from 9/11. George Bush did a great job of reminding Americans every single day that he was in office what that lesson is. And, by the way, I'd like to see President Obama follow more closely in the footsteps of George Bush and [Bush's] passion keeping the homeland safe, his passion for respecting – honoring our troops."

Palin is the second prominent Republican to praise Obama's speech accepting the Nobel Prize, after former House Speaker Newt Gingrich called it "very good."

Polls indicate that most Americans believe the award was given to the president prematurely. In his remarks, Obama acknowledged the controversy as he accepted the esteemed international prize after less than a year in the White House.

"I receive this honor with deep gratitude and great humility," Obama said in the speech. "Compared to some of the giants of history who have received this prize ... my accomplishments are slight."

Read: Obama's Nobel acceptance speech

'I liked what he said,' former Alaska Gov. Sarah Palin said of the president's Nobel acceptance speech.

(CNN) – Sarah Palin had some rare praise Thursday for President Obama after the president delivered his Nobel Peace Prize acceptance speech in Oslo. But the former Republican vice presidential nominee added that she would like to see the president act more like his predecessor, George W. Bush.

"I liked what he said," Palin told USAToday in an interview after the speech.

Palin said the president's remarks had a familiar ring. "I thumbed through my book quickly this morning to say 'Wow! That really sounded familiar.' because I talked in book too about the fallen nature of man and why war is necessary at times."

Related: War sometimes justified, Obama says

But Palin suggested Obama could learn a few things from former President Bush.

"We have to stop those terrorists over there," she told the paper. "We've learned our lesson from 9/11. George Bush did a great job of reminding Americans every single day that he was in office what that lesson is. And, by the way, I'd like to see President Obama follow more closely in the footsteps of George Bush and [Bush's] passion keeping the homeland safe, his passion for respecting – honoring our troops."

Palin is the second prominent Republican to praise Obama's speech accepting the Nobel Prize, after former House Speaker Newt Gingrich called it "very good."

Polls indicate that most Americans believe the award was given to the president prematurely. In his remarks, Obama acknowledged the controversy as he accepted the esteemed international prize after less than a year in the White House.

"I receive this honor with deep gratitude and great humility," Obama said in the speech. "Compared to some of the giants of history who have received this prize ... my accomplishments are slight."

Read: Obama's Nobel acceptance speech

Gingrich praises Obama's speech.

(CNN) – Former Speaker of the House Newt Gingrich praised President Obama's acceptance speech Thursday before the Nobel Committee in Oslo.

"I thought the speech was actually very good," Gingrich told NPR's The Takeaway. "He clearly understood that he had been given the prize prematurely, but he used it as an occasion to remind people, first of all, as he said: that there is evil in the world."

The comments mark the second time in a month that Gingrich has given President Obama's performance a positive nod. Following the president's speech at West Point, Gingrich said the decision to increase troop levels in Afghanistan "took considerable courage."

Read: Obama's entire Nobel acceptance speech

Related: War sometimes justified, Obama says in speech

Obama, along with first lady Michelle Obama, walked into Oslo City Hall at 1 p.m. to a trumpet fanfare and sustained applause.

"I receive this honor with deep gratitude and great humility," he said. "It is an award that speaks to our highest aspirations - that for all the cruelty and hardship of our world, we are not mere prisoners of fate. Our actions matter, and can bend history in the direction of justice.

"And yet I would be remiss if I did not acknowledge the considerable controversy that your generous decision has generated. In part, this is because I am at the beginning, and not the end, of my labors on the world stage."

Full story

Congressional leaders, including Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi, met Wednesday at the White House with the president.

Washington (CNN) - President Barack Obama called Wednesday for Republicans to work with his administration and Democrats in Congress on winding down the federal economic bailout program and creating jobs.

In a brief White House statement after meeting with congressional leaders from both parties, Obama said changing economic conditions since he took office called for new efforts to stimulate job growth.

Acknowledging "less than full bipartisan support" for his stimulus package and other steps "that have broken the free-fall of our economy," Obama said he hoped "we can move forward together."

One step would be ending the Troubled Asset Relief Program (TARP) from the previous administration that bailed out U.S. banks and automakers in danger of collapsing in the recession, Obama said.

"This program has served its original purpose and the cost has been lower than expected," the president said, adding that the savings would help pay down the federal deficit and invest in job creation.

Obama said he would work with congressional leaders from both parties on "how we can structure a plausible scenario to get to medium- and long-term debt reduction," saying such issues were neither Republican nor Democratic.

"I'm absolutely committed to working with anybody who is willing to do the job to make sure we can rebuild our economy," Obama said.

Sen. Mitch McConnell of Kentucky, the top Republican in the Senate, attended the meeting with Obama but signaled continued GOP resistance to the president's agenda, especially sweeping proposals such as health care reform and cap-and-trade energy legislation.

"We're willing to talk about some kind of job-creating measure, but the best thing we could do to get this economy rolling again would be to stop these measures from becoming law," McConnell said.

Such GOP intransigence sometimes bothers Obama, White House Press Secretary Robert Gibbs told his daily news briefing.

"Has the president been frustrated about this? Absolutely," Gibbs said, citing a lack of Republican support for the stimulus package and other steps that helped prevent "another Great Depression."

Now, Gibbs said, Obama was proposing job creation measures previously advocated by Republicans, such as increased investment in infrastructure development, cutting taxes for small businesses and helping them get access to capital.

"But, again, if the president outlines ideas that the Republicans have previously supported, and then Republicans seem unwilling to support the ideas they (previously) supported ..., you can leave it up to others to judge why it is they don't want to participate in a solution that we all agree and we've said in the past would put people back to work," Gibbs said.

TOPICS: Obama, Nobel Peace Prize

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