Obama asks both parties to support $825bn stimulus

PRESIDENT BARACK Obama has asked congressional leaders from both parties to back a massive $825 billion spending plan to stimulate…

PRESIDENT BARACK Obama has asked congressional leaders from both parties to back a massive $825 billion spending plan to stimulate the struggling American economy, while acknowledging that significant disagreements remain.

Speaking ahead of a White House meeting with Democratic and Republican leaders, Mr Obama called for bipartisan support for the package, which he hopes will create up to four million new jobs.

“I know that it is a heavy lift to do something as substantial as we’re doing right now,” he said.

“I recognise that there are still some differences around the table and between the administration and members of Congress about particular details on the plan.

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“But I think what unifies this group is a recognition that we are experiencing an unprecedented, perhaps, economic crisis that has to be dealt with, and dealt with rapidly.”

Republicans, who complain that the stimulus package is too expensive and that it will be too slow to take effect, want a greater emphasis on tax cuts than on increased government spending.

They point to an independent report by the congressional budget office that casts doubt on the administration’s claim that the money can be spent fast enough to have a swift impact on unemployment.

“We expressed our concerns about some of the spending that’s being proposed in the House Bill and the fact that it doesn’t spend out very quickly,” House Republican leader John Boehner said after the White House meeting.

“At the end of the day, government can’t solve this problem. The American people have to solve it. And the way they can solve it is if we allow them to keep more of the money that they earn.”

Despite Republican misgivings, all sides agreed that Congress was on course to approve a stimulus package next month.

Senate Republican leader Mitch McConnell said the president was open to his party’s suggestions.

White House press secretary Robert Gibbs said yesterday that Mr Obama will travel to Capitol Hill next week to address Republican concerns with his economic recovery Bill.

“We look forward to continuing to seek their ideas, to seek their input and have a process where their ideas can be debated and voted on,” Mr Gibbs said.

In a move certain to upset conservatives, Mr Obama was last night expected to issue an order restoring US funding for international family planning groups that support abortion.

The move would overturn a policy known as the “global gag rule” introduced by Ronald Reagan in 1984, which said that US funds for contraception and other family planning services could not go to organisations that advocate, counsel or offer abortion.

Former president Bill Clinton lifted the ban in 1993 but George Bush restored it eight years ago.

On Thursday, Mr Obama marked the 36th anniversary of Roe v Wade, which guaranteed abortion rights in the US, by affirming his support for a woman’s right to choose.

“This decision not only protects women’s health and reproductive freedom, but stands for a broader principle: that government should not intrude on our most private family matters,” he said.

Lifting the “global gag rule” would open the way for Washington to restore funding to the United Nations Population Fund, a move welcomed by development agencies but denounced by anti-abortion activists and organisations.

“President Obama not long ago told the American people that he would support policies to reduce abortions, but today he is effectively guaranteeing more abortions by funding groups that promote abortion as a method of population control,” Douglas Johnson, legislative director of the National Right to Life Committee, said.