WASHINGTON (CNN) - Amid nervousness about states' economies and a growing unemployment rate, the Obama administration is considering a series of measures aimed at putting many Americans back to work before the 2010 midterm elections, sources close to the process told CNN.
The effort is largely being directed by the Treasury Department and Lawrence Summers, director of the National Economic Council, one source said.
Ideas include enhancing tax credit flexibility for small businesses, extending unemployment and health benefits and offering states temporary "loan packages" to help governors get through the worst of the recession.
Unlike the stimulus package, the loans to states would be voluntary: "We would like to avoid the stimulus problem," the source said.
Other options being examined by the White House, according to two Democratic sources close to the process, include extending the $8,000 tax credit for new homebuyers, set to expire November 30.