WORLD> America
Obama open to compromise on $825b stimulus bill
(Agencies)
Updated: 2009-01-28 10:43

On Monday, he leaned on House Democrats to jettison an item that would make it easier for states to provide family planning funds for the poor under Medicaid, a provision in the legislation that had become a target of ridicule for Republicans. Press Secretary Robert Gibbs said Obama supports the concept but wants it included in a different bill.

Ironically, Democrats said deleting the provision would wind up increasing federal spending, since it probably would mean more money spent on higher pregnancy and postnatal care.

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House Republican leaders welcomed the president a few hours after urging their rank-and-file to oppose the stimulus bill, and it was far from clear that Obama had managed to pick up any GOP support during the day.

Gibbs said the White House expects some GOP lawmakers will vote for the measure on Wednesday in the House, and indicated he hopes there will be more in the Senate and even more later when a final compromise is reached.

One Republican senator, speaking on condition of anonymity, said the president pledged to Sen. John Ensign, R-Nev., to have aides review two specific proposals. One would affect businesses that pay down their debt. The other would provide a temporary tax holiday for companies that have money overseas and bring it back to the United States to invest.

Obama ventured into an uncertain political environment when he stepped into the Capitol, a president with high approval ratings pitching a plan that also has been favorably received in the polls.

Republicans, on the other hand, are trying to regroup after last fall's elections, in which they lost the White House as well as seats in both houses of Congress. While some conservatives seem eager to mount a frontal attack on Obama and his plans, others are pursuing a strategy of criticizing congressional Democrats rather than the president.

Hours earlier, according to officials who were present at a GOP meeting, none of the Republicans in attendance spoke up in disagreement when urged to oppose the legislation by their leaders. Rep. John Boehner of Ohio, the party's leader, and Eric Cantor of Virginia, the second in command, said they wanted "100 percent" opposition to the measure, which they argue includes billions in wasteful spending, these officials said.

Across the Capitol, Senate Republican leader Mitch McConnell suggested that Democrats in Congress were the problem, not the president.

"We think the country needs a stimulus," McConnell said on NBC's "Today" show. But he also said that he believes most people do not believe recovery can be accomplished through projects like "fixing up the Mall," a reference to funding to repair the National Mall in Washington.

He said Republicans want a bill that devotes 40 percent of its total to tax cuts.

Some conservatives were far more blunt.

"While the president was genial, his proposal remains rooted in a liberal, big-government ideology that ignores history," said Rep. Tom Price of Georgia, head of the conservative Republican Study Committee in the House.

Complicating the Republican position was evidence of support among the nation's governors for the legislation taking shape.

The measure includes more than $120 billion in aid to schools, some of it to protect them from the effects of state budget cuts in a time of recession. It also provides more than $80 billion additional funding for Medicaid, the state-federal program that provides health care for low-income people, and $40 billion more to help people who have recently lost their jobs hold onto employer-provided health care. Another $32 billion is ticketed for transportation projects, and $30 billion more for water projects and rail and mass transit.

Obama's centerpiece tax cut would provide $500 per worker and $1,000 per couple for low and middle-income wage earners, including those who do not earn enough to owe income taxes.

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