House Rejects Obama's Request For Rest Of TARP

House Rejects Obama's Request For Rest Of TARP
by ANDREW TAYLOR - AP
January 22, 2009 02:10 PM EST |

WASHINGTON " President Barack Obama's economic recovery plan, including proposals to award a $500 tax credit to most workers and to help the laid-off hang onto their health insurance, met Republican resistance Thursday as it began moving through the House.

At the same time, the House cast a strong bipartisan vote, though symbolic, to reject Obama's request for the unspent $350 billion in a bailout fund for the financial sector. The 270-155 vote was a moot point because the Senate refused to block the release of the money last week. That effectively made it available to the new administration.

But the vote illustrated the difficulties facing Obama as he moves ahead to spend the bailout money without irritating public opinion. House members in both parties have been under pressure to oppose more bailout spending.

On the economic stimulus package, two House committees prepared Obama's $825 billion-plus package for a floor vote next week amid clear signs that the measure was not picking up the level of GOP support that Obama was hoping for.

And some Democrats expressed frustration at a separate hearing Thursday that the bill doesn't do enough to rebuild America's crumbling infrastructure. Just $30 billion is reserved for highway repair and construction.

"This bill ... is not even near what we need for short-term needs and it does not in any meaningful way address the long-term needs for our country," griped Rep. Peter DeFazio, D-Ore., at a Transportation panel hearing. "But it is better than nothing."

Obama's plans to extend and boost unemployment benefits, give states $87 billion to deal with Medicaid shortfalls and help unemployed people retain health care, were advancing through two other panels. But Republicans are turning against Obama's economic stimulus program, despite promises by both the president and GOP lawmakers to work together.

House Minority Whip Eric Cantor said on CBS's "The Early Show" that Republicans want to cooperate with the new administration to help restore the faltering economy, but that many facets of the program being pushed by majority Democrats would fail to create new jobs.