Bush prepares request for rest of bailout funds
WASHINGTON - Senior Bush administration officials, consulting with the Obama transition team, have prepared a plan to ask lawmakers for the second half of the $700 billion financial rescue package despite intense opposition in Congress, sources familiar with the discussions said.
The initiative could create an unusual political choice for the Bush and Obama administrations. If Congress were to vote down the bill, either President Bush or Obama would have to exercise a veto to get the money.
Obama officials would prefer that Bush exercise any veto rather than leave the new president with the task of rebuffing his fellow Democrats in Congress. The White House has declined to say publicly whether Bush would be willing to issue the veto.
But Senate aides were notified in a meeting yesterday afternoon that the request could come as soon as this weekend and that a vote could be held as early as next week, said congressional sources, who spoke on the condition of anonymity because no decisions have been made.
Under the emergency rescue legislation approved by Congress in October, the administration must inform lawmakers that it wants access to the second installment of $350 billion. Unless Congress passes a resolution rejecting the request within 15 days, the Treasury can begin to tap the funds.
If Congress turns down the request, the president could veto the resolution and then the Treasury could proceed. The money would be blocked only if Congress overrides the veto.
Obama said yesterday that he and Congress will "hone and refine" his nearly $800 billion economic recovery plan, as he seeks to patch rifts with senior Democrats over the package.
Obama said he welcomed input on the package from lawmakers in both parties but emphasized the need to act quickly. "Clearly the situation is dire," he said at a news conference.
House Democrats yesterday criticized some of Obama's proposed tax cuts, particularly a $3,000 tax credit for job creation.
Representative Earl Pomeroy of North Carolina said the caucus recommended spending more on infrastructure projects. Barney Frank of Massachusetts, chairman of the Financial Services Committee, said money will be added to have state and local governments buy foreclosed homes.
Material from the Associated Press was included in this report. 