Obama presses for remaining $350b

President-elect says he will veto denial of funding

President-elect Barack Obama promised to revise elements of the bailout, pledging billions to help homeowners. (Jonathan Ernst/Getty Images)

WASHINGTON - Tested before taking power, President-elect Barack Obama appealed to Democrats in Congress yesterday to allow the use of an additional $350 billion in federal bailout funds and vowed to veto any move to block the money.

Obama backed up his plea with a promise to revise elements of the bailout program that have drawn widespread criticism, pledging billions will go to help homeowners facing foreclosure. Several Democrats said his commitments, to be made in writing, would be enough to prevent an embarrassing preinauguration rejection for the president-elect when the Senate votes this week.

"This will be the first vote that President-elect Obama is asking us for. I'll be shocked and I'll be really disappointed if he doesn't get it," said Senator Joseph Lieberman, an independent from Connecticut.

Behind closed doors, Obama also urged lawmakers to act quickly on the massive economic stimulus measure his aides have been negotiating with congressional officials. The legislation will blend federal spending with tax cuts, and could reach $1 trillion in size, a measure of the nation's economic woes.

Democratic leaders in the House and Senate hope to have the legislation ready by mid-February.

Despite its size, the stimulus bill is not expected to face heavy opposition from Democrats, and Obama has won praise from Republicans for willingness to show deference to their concerns.

Obama got a boost during the day from Federal Reserve chairman Ben Bernanke, who said in London the emerging legislation could provide a "significant boost" to the sinking economy.

Bernanke also warned in remarks prepared for the London School of Economics that a recovery wouldn't last unless other steps were taken to stabilize the shaky financial system.

President Bush, acting at Obama's request, formally notified Congress on Monday that Treasury wants to use the funds.