Obama's economic plan so far

President uses first 100 days to embark on wide-ranging initiatives to stem the downturn and financial crisis.

By Jeanne Sahadi, CNNMoney.com senior writer

Obama's economic plan so far
American Recovery and Reinvestment Act

Less than a month in office, signs into law the $787 billion stimulus plan, the largest spending bill in the country's history. The package garners three Republican votes in the Senate, none in the House.

Major elements include infrastructure spending, expanded unemployment benefits, increased food stamps, aid to states to pay for Medicaid and tax breaks for individuals and businesses.

Estimates the bill will result in 3 million to 4 million jobs saved or created.

Bank bailout

Secures release of the second half of $700 billion allocated for the Troubled Asset Relief Program before taking office. Announces broad outline of Financial Stability Plan in February, a revamp of how TARP money will be used. Offers outline on plan to buy toxic bank assets, then later reveals details on how its new public-private investment program (PPIP) will work. Conducts stress tests to assess big banks' ability to absorb losses if economic conditions worsen. Taps Fannie Mae CEO to oversee TARP.

Lending

Launches $1 trillion program to increase lending to consumers and small businesses. Fed also begins buying Treasurys, driving down interest rates further.

Regulation

Calls for establishment of a single regulator to manage risk in the financial markets and to regulate firms both banks and non-banks - whose failure could be catastrophic for the economy.

International relations

Holds meetings with G20, G7, IMF and World Bank to discuss how to coordinate efforts in combating economic and banking crises.

Credit card issuers

In addition to the Federal Reserve and Congress, the White House presses credit card companies to adopt more consumer-friendly policies.

Executive pay

Announces executive pay cap plan for companies receiving government bailout funding. The new rules will cap annual cash compensation at $500,000 for those CEOs. Still deciding whether to apply the rules to participants in the Fed's term asset lending facility (TALF).

AIG

Offers insurer its third revamp of its bailout deal and commits another $30 billion to the company, bringing to $182 billion the total federal monies committed to the insurer since September 2008. Tries without much success to quell public outrage over $165 million in bonuses paid to AIG employees.

Automakers

Appoints a task force to oversee the restructuring of the Big Three automakers. Taps autoworkers czar to help direct federal funds to those hardest hit by the industry's meltdown

Grants GM and Chrysler billions more in federal loans to stave off bankruptcy. Replaces GM CEO Rick Wagoner. Tries to broker a deal between Chrysler and Fiat and with the automakers' creditors and unions to avoid bankruptcy.

Foreclosure prevention

Announces $75 billion Making Home Affordable Plan in February; six banks sign up to participate by April. The two-part plan calls for servicers to reduce monthly payments to no more than 31% of eligible borrowers' pre-tax income or to refinance eligible mortgages even if the homeowner has little or no equity. The plan also includes incentives for loan servicers to modify mortgages for at-risk borrowers.

Fannie and Freddie

To help reassure mortgage investors, doubles to $400 billion the money the government stands ready to commit to keep mortgage finance giants Fannie Mae and Freddie Mac solvent. Increases the size of their mortgage portfolios and amount of debt they may have outstanding.

Spending plan

Outlines budget request for 2010 that calls for $3.6 trillion in spending. Sells budget as one with two-pronged mission: reduce the $1 trillion-plus deficit he inherited to $533 billion by 2013 and make big investments in the future that can curb health care costs and make the country more energy efficient.

The $3.5 trillion budget resolution agreement from the House and Senate reflects most but not all of the president's major requests, but the agreement isn't expected to garner much Republican support.

Separately, commits to cutting $100 million in federal agency spending, a sum equal to 0.006% of this year's deficit.

New tax breaks

Two-year stimulus package includes Obama's signature campaign promise the Making Work Pay tax credit, which returns to low-, middle and upper-middle-income workers $400 ($800 for couples) in their paychecks. President's budget request calls for provision to be made permanent.

Expanded tax breaks

Stimulus package includes expanded credits for low-income workers and families with children. President's budget outline would make expansions permanent.

Bush tax cuts

Calls for Bush tax cuts to be made permanent for everyone except high-income households, on which he wants to raise the top income tax rates in 2011.

Funding for health care reform

Calls for health care reform to be deficit neutral. But meets resistance from Democrats and Republicans on his proposal to limit itemized deductions for high-income earners as a way to pay for health care reform.

Raise revenue

Creates a tax panel to find ways to raise revenue and to find ways to close corporate tax loopholes.

Health care

Proposes $634 billion health care reform reserve fund. Democrats may move healthcare reform under a fast-track process called budget reconciliation. That means the Senate can pass it with a simple majority rather than the 60 needed to avoid filibuster. In essence, it could pass without Republican support.

Education

Increases in a key tax credit for college students in stimulus and proposes to make increase permanent in his budget. Calls for federal guaranteed student loan program to be replaced with an expansion of the Direct Loan Program. Stimulus package also includes funds for education infrastructure.

Energy

Signs directives on clean energy and includes several energy-related provisions in stimulus package. Directs the Environmental Protection Agency to review a California application to regulate greenhouse gases and calls for the establishment of a cap-and-trade system to control carbon emissions and to raise revenue for other initiatives.


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