Obama’s Budget for Change, Including Foreclosures

Time icon March 3rd, 2009 by Autor Joseph Smith

President Obama called on members of Congress to pass his $3.6 budget so that he can accomplish changes the Americans voted for in 2008. In his weekly video and radio address, he said he expected his budget to be opposed by some lawmakers and some lobbyists because the spending plan threatens the status quo in Congress. One of Obama’s campaign promises was to help troubled homeowners and save them from foreclosures.

Barack Obama

Obama’s spending plan allocates huge amounts for health care, education and energy industries. These huge amounts would be partly funded by increasing taxes for multinational corporations, oil and gas industries, hedge fund managers and families with annual income of over $250,000. Obama plans to cancel the $30 billion tax breaks being given to oil and gas corporations, to require health insurance companies to bid competitively for the right to provide medical care under Medicare and to control subsidies being given to student loan providers. Obama said he knows these proposals would be opposed fiercely by parties adversely affected.

The president reiterated in his address that the $3.6 billion will be used to achieve significant changes that he promised during his election campaign. He said he did not get to his position to do things the way it has always been done. He promised major changes which the Americans supported when they voted for him in November 2008, including the prevention of further foreclosures.

In February, Obama released the details of his $75 billion program to help homeowners troubled by foreclosures. His program included cash incentives for mortgage lenders who work out loan modifications with homeowners at risk of foreclosures. Cash incentives by way of loan balance reductions are also promised for borrowers who can have their loans restructured and who can sustain their mortgage payments.

Obama’s foreclosure program also included additional funding for Fannie Mae and Freddie Mac to enable them to buy and sell more mortgage loans to help stabilize the housing market, which have been devastated by foreclosures and bargain home prices.

The president said his budget proposal would surely be criticized by lobbyists and special interest groups because they are protecting their own specific areas of investments. He warned these groups he is ready to fight for his planned $3.6 trillion budget. He further said he promised Americans he is going to solve the problem of foreclosures. He said he promised he is going to hasten economic recovery, and he will.

Related Posts: