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Friday, October 16, 2009

Obama Prepared to add another $12 Billion to Deficit while Stimulus Money Sits

Some lawmakers are questioning President Obama's proposal to add $13 billion to the deficit to fund a one-time $250 Social Security payment, since the bulk of the $787 billion stimulus package is still unspent.

The calls so far are mostly coming from Republicans, who see the recovery act as a fiscal blunder that has failed to stem rising unemployment. In some cases, they see the pot of money as a way to head off additional deficit spending in other areas.

After President Obama called on Congress to approve $250 payments to Social Security recipients to make up for no cost-of-living increase, House Minority Leader John Boehner said he'd be "happy" to support it -- so long as Congress takes the money out of the stimulus.

"The stimulus bill is not working. The American people are asking, 'Where are the jobs?' And if we're going to provide this benefit to our seniors, why don't we take it from stimulus funds that clearly aren't getting the job done?" he said.

Standing beside him, Senate Minority Leader Mitch McConnell said he'd reserve judgment since the House would act first on the request. But he indicated an openness to Boehner's idea, saying, "My guess is our members may want to try to pay for it as well."

Officials say 60 percent of the $787 billion stimulus is left. A chart on the Recovery.gov Web site that tracks spending shows that just 22 percent of the stimulus has been paid out. - FOX News Story

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