[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2010/images/01/23/art.obamafiscal.gi.jpg caption="In a dramatic concession to senior Democratic and Republican lawmakers, President Obama abruptly shifted his position Saturday and declared his public support for creating a fiscal commission."]Washington (CNN) - In a dramatic concession to senior Democratic and Republican lawmakers, President Obama abruptly shifted his position Saturday and declared his public support for creating a fiscal commission that could propose sweeping tax increases and spending cuts to try to slash the soaring federal debt.
The White House released an unexpected written statement from Obama saying he now backs putting together a powerful commission created through a federal statute, a reversal from earlier this week when Vice President Joe Biden signaled in a private meeting with Sen. Kent Conrad, D-N.Dakota, and other key lawmakers that the administration would only support a weaker version of the commission by forming it through an executive order.
"The only way to solve our long-term fiscal challenges is to solve it together – Democrats and Republicans," Obama said in the written statement. "That's why I strongly support legislation currently under consideration to create a bipartisan, fiscal commission to come up with a set of solutions to tackle our nation's fiscal challenges – and call on Senators from both parties to vote for the creation of a statutory, bipartisan fiscal commission."
Conrad applauded Obama's decision in a written statement.
"The president is demonstrating exactly the kind of leadership we need to tackle our nation's long-term fiscal challenges," Conrad said. "His support shows that he is determined to do what is necessary to put us back on a sound long-term course."
[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/images/09/04/art.obamaov.0904.gi.jpg
caption="CNN has learned that the White House is working to draft health care legislation."]
WASHINGTON (CNN) - CNN has learned that the White House is quietly talking about drafting formal health care legislation after allowing Congress to work on its own for months.
Multiple sources close to the process told CNN Friday that while the plan is uncertain, they are preparing for the possibility they could deliver their own legislation to Capitol Hill sometime after the President Barack Obama's speech to a joint session of Congress Wednesday, with one source calling the possibility of new legislation a "contingency" approach if efforts by Finance Committee Chairman Max Baucus to craft a deal fall through.
The White House emphasized Friday that no formal bill has yet been written. "The President has been reviewing all of the various legislative proposals, but no decision has been made about whether formal legislation will be presented," said Deputy Communications Director Dan Pfeiffer.
Multiple sources told CNN earlier in the day the thinking among administration officials was that the president will lay out a path to reform in his speech next week that the White House hopes can bridge the various differences in the competing proposals. Sources expect the president to emphasize the message: If Congress passes something now, it will serve as a foundation to pass further reform in the future.
As previously reported, the so-called trigger option remains very much on the table.
(UPDATE, 1:25 pm: The House has passed the $2 billion extension of the cash for clunkers program 316-109; there will be no Senate vote before Monday)
WASHINGTON (CNN) - White House spokesman Robert Gibbs said Friday the extremely popular "cash for clunkers" program is still up and running at least through this weekend, and said Obama administration officials are working furiously behind the scenes with Congressional leaders to find extra money to extend the program for a longer time period.
"It's up and running," Gibbs told reporters in his office, adding that it "can, will and should" continue indefinitely.
Meanwhile, Sen. Debbie Stabenow of Michigan announced that lawmakers are closing in on a deal with the White House that would give the program, which allows consumers to trade in old cars for newer more fuel-efficient vehicles, an extra $2 billion to continue and expand it.
(CNN) - A senior State Department official said Wednesday that Secretary of State Hillary Clinton will not go to Moscow for President Obama's meetings with Russian officials.
A senior White House official said the reason Secretary Clinton is skipping the trip is because the intensive physical therapy sessions that she's been undergoing due to her broken elbow would have been too difficult to replicate during a grueling trip overseas. The White House official said it was unclear who will stand in for Clinton, though typically in a situation like this the Deputy Secretary of State would travel in her place. The Secretary's number two at State is James Steinberg, a former deputy national security adviser in the Clinton administration.
WASHINGTON (CNN) - A Republican aide familiar with Judd Gregg's decision to withdraw from consideration says the New Hampshire senator has been privately consulting with GOP leaders about this move for the “past couple of days” before making final decision today.
And a Republican source close to Gregg says the "census tipped things," adding to increasing "worries about his seat at the table" - that Gregg might be marginalized “basically if on any issue important to Democratic constituencies they are on one side and Judd is on the other, he is muted.
[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2008/POLITICS/11/07/mcintyre.gates.buzz/art.gates.gi.jpg caption="Gates will continue as defense secretary."]CHICAGO (CNN) - Several officials close to President-elect Barack Obama's transition told CNN on Tuesday that Defense Secretary Robert Gates is expected to stay on the job for at least the first year of the new administration, with one source calling it "all but a done deal" that the official nomination could be announced as early as next week.
"It's now pointing in that direction," one of the sources close to the transition said of Gates being part of Obama's national security team, which many say also is likely to include Sen. Hillary Clinton as secretary of state.
"It's likely to happen," a second source close to the transition said of Gates staying on. This source noted that Gates could stay longer than a year if he and Obama end up working well together.
Sources close to the transition have said Obama is interested in some continuity at the Pentagon because he is entering office having to deal with two wars - in Iraq and Afghanistan - as well as the international financial crisis.
Recent Comments