THE WHITE HOUSE

Office of the Press Secretary
_____________________________________________________
For Immediate Release February 20, 2009

REMARKS BY THE PRESIDENT AND THE VICE PRESIDENT

AT MEETING WITH NATION'S MAYORS
East Room
10:36 A.M. EST

THE VICE PRESIDENT: Well, thank you all for being here today, and welcome back to the White House. (Applause.) Mr. Mayor, my mayor in the city of Wilmington, Jim Baker -- when I got elected, he assumed that he got an office in the West Wing. (Laughter.) But he has a telephone number that is accessible -- hi, Jim, how are you?

Thank you all for being here. It's great to be with so many -- so many leaders who are literally, to use that shopworn phrase, on the front lines where the economy lives and dies, and where people are struggling, and you have to deal with it every day.

You know, in a long career in politics, there's one overwhelming reason why I never ran for mayor, Richie, it's too hard. (Laughter.) They have got your phone number, and they know where you live, and they come and they use it.

Well, President Obama and I are turning that around. We want you to know you can have our phone number, and you know where we live. (Applause.) And we expect you to use it. Already, we've met with you and the Conference of Mayors over half a dozen times.

Too often in the past, America's cities have been neglected, and our mayors haven't had -- haven't been able to be heard on the questions of national policy. That's a story you all understand and know very well. But we know how important cities are -- 65 percent of our nation's population, as you all know, live in our cities. Our cities are the home of seven out of ten American jobs. And when you're talking about the "knowledge economy jobs," the number rises to eight and ten -- eight out of ten. Cities are vital to our economy, essential to our recovery, and haven't been paid much attention to.

Our economy can never reach, in our view, its full potential if we have people who are living blocks away, but worlds away from the bustling downtowns full of opportunity. Our poor transportation systems don't provide mobility people need to get to the job. Or they aren't enough police or firefighters in communities to keep the communities safe.

And that's why the American Recovery and Reinvestment Act President Obama signed this week I think includes unprecedented investment in American cities. (Applause.) Simply stated, that's the commitment made in this law. Now, the hard part in one sense, is up to us. We got to make this work. We got to make it work for our people. We got to make it work for our cities. We got to make work for all our people.

The American people have trusted their government with an unprecedented -- unprecedented level of funding to address the economic emergency we face. In return, we have to prove to them that their dollars are making a difference in their communities. We've already set up a website -– recovery.com [sic] -– which will show where and how the money is being spent. The public can actually go on a web site and see how we're spending this money.

President Obama has been insistent during his campaign, and from the time we won, on accountability and transparency. All of you know, if we don't meet that minimum threshold, the likelihood of the public trusting us to do this kind of thing is going to evaporate very rapidly. Transparency is vital, and effectiveness is paramount. These investments are a huge opportunity -- a huge opportunity to create jobs today, and strengthen our economy for tomorrow.

We've designed this bill to save and create -- save or create over 3 million new jobs. And we'd like to see it do even better than that. And that's where your efforts come in. You are -- you're the ones who know the areas that give us the greatest return on our investment -- you know it better than we do. You're the ones who know -- you're the ones who know which projects will crystallize private investment and even greater growth in your cities. And the world is watching -- the world is watching to see how well this is going to work. And we need your help -- we need your help in making it work, and work quickly and effectively.

As of today, we're one month into this administration -- although I said to the President in the past, it feels like a little longer than that. But we are one month into this administration. And think what the President has already done -- already signed into laws, there's a Lilly Ledbetter Fair Pay Act. We've expanded state health insurance -- Children's Health Insurance Program to cover an additional 4 million children. We put forward -- excuse me -- we put forward a plan to reduce preventable home foreclosures. We've won passage of the largest economic recovery effort since World War II -- in a month -- in a month. (Applause.)

So the results of the President's leadership and your help are already there and clear for everybody to see. But it's been a great privilege to also see how much this President has done behind the scenes to make this happen. I've been here for eight Presidents -- for eight Presidents -- you can tell by my look. (Laughter.) Well, I want to tell you something: The hard choices the President has made, the patient outreach he's done, the firm resolve he's shown -- the results of this work I think speak for themselves. But I'm pleased to speak about the man who made these results happen.

There is so much more to do –- so much more. But already, President Obama has put our nation on the path toward greater recovery -- not only greater recovery, but greater decency, greater fairness, greater opportunity, along with economic recovery. For years, many of us have hoped for such accomplishments. And in just one month, an incredible new President has made this a reality.

So please join me in welcoming the President of the United States of America, Barack Obama. (Applause.)

THE PRESIDENT: Thank you, everybody. Thank you. Please have a seat. Thank you so much. Whenever I have the opportunity to meet with mayors, I think about how I got my start doing what you do each day: working with folks at the local level and doing our best to make a real impact on the lives of ordinary Americans. And that's just another reason why I'm so happy to welcome all of you here today.

I want to offer -- take a little personal prerogative here and welcome my own hometown mayor -- my friend, Rich Daley. (Applause.) His steady leadership has proven again and again that the American city can be a place of boundless opportunity and a source of solutions to our public problems; he has made a deep and lasting difference in the quality of life for millions of Chicagoans. I'm surprised he's still talking to me because I stole Arne Duncan from him -- (laughter) -- but I am confident that he will continue to make great strides.

I see friends from all over the place; some old friends -- not old in years, but people who I've known a long time. My other hometown mayor, Mufi, it's great to see you all the way from Honolulu. I've got Mayor Riley and others who are in attendance; Shirley Franklin doing great work; and Mayor Villaraigosa and Mayor Dellums from -- we've got the California contingent. So I'm grateful to all of you.

And I think all of you understand that we meet at such an urgent time. Last night, I signed an executive order establishing the White House Office of Urban Affairs. (Applause.) I've chosen Adolfo Carrión to be its first director. Adolfo wrote a real success story in the Bronx as borough president, and now he's going to be working with all of you to write our next success stories in cities across the country.

He's going to be responsible for coordinating all federal urban programs, and I've asked him to set up an advisory council with mayors and other urban leaders so that we can develop a new metropolitan strategy based on the lessons you've learned. Now, rebuilding our economies and renewing our cities is going to require a true partnership between mayors and the White House, and that partnership has to begin right now.

Those of you who have traveled great distances to be here come from different parties and philosophies. You govern very different cities, they're made up of different citizenries with different demographic makeups. But today, in the face of our common challenges, you're all hearing the same stories. I know because I'm getting letters from constituents all across the country, in many of your cities.

But you're on the front lines in our communities. You know what happens when folks get laid off, or they lose their homes or their health care, and they turn to the mayor's office for help. And just as your services stretch, your classrooms get crowded, and your streets grow less safe, your budgets shrink. You can't deficit spend, so you face impossible choices: raising taxes; cutting essential services; laying off teachers, firefighters, police officers.

And that's why the recovery plan we put into action this week is so important. It's a plan that will save or create 3.5 million jobs over the next two years; will help those hardest hit by our economic crisis; it will aid state and local governments in hopes you can avoid those excruciating choices.

It provides greater unemployment insurance for nearly 18 million Americans, and protects health care for 7 million who lost their health care along with their jobs. It includes the most progressive tax cuts in our history, spurring job creation and putting money into the pockets of 95 percent of all hardworking families. It invests in what works for our cities by funding programs like the Byrne Justice Assistance Grant and the COPS program, which boost public safety and bring down crime. It rewards responsibility, making sure that if you work hard, you won't have to raise a child below the poverty line.

But what makes this recovery plan so important isn't just the jobs it will create or the immediate help it provides; it's that we are putting Americans to work doing the work America needs done in critical areas that have been neglected for too long. (Applause.) So this plan does more to lay a new foundation for our cities' growth and opportunity than anything Washington has done in generations -- and it will bring real and lasting change for generations to come.

Because we know we can't build our economic future on the transportation and information networks of the past, we're remaking our cities with the largest new investment in our nation's infrastructure since Eisenhower built an Interstate Highway System in the 1950s. Ray LaHood is going to be busy because we're putting 400,000 men and women to work rebuilding our crumbling roads and our bridges, repairing our faulty dams and levees, replacing our aging water and sewer pipes, and rolling out broadband lines to nearly every community in America. (Applause.) We're going to unleash the potential of all our regions by connecting them with world-class transit systems and high-speed rail, making our metropolitan areas more livable and sustainable in the process.

Because we know education is the single best bet we can make to change the odds of our children and our cities, we are making the largest investment in education in our nation's history. It will prevent harmful education cuts and save jobs of tens of thousands of teachers -- 14,000 just in New York City. And it will make a historic investment in early childhood education and upgrade classrooms and libraries and labs across America, so that millions of our children are prepared to compete in the 21st century.

Because we know that spiraling health care costs are crushing families and businesses alike, and straining budgets across government, we're taking the most meaningful steps in years to modernize our health care system. We're going to computerize America's medical records while maintaining rigorous privacy standards, saving billions of dollars and countless lives. We'll focus on prevention, keeping millions of Americans from having to set in the doctor's office in the first place. Taken together with the earlier enactment this month of long-delayed laws to extend health care to millions more children of working families, we've done more in 30 days to advance the cause of health care reform than this country has done in a decade. (Applause.)

And because we know we can't power America's future on energy that's controlled by foreign dictators, we're making an investment that within three years will double the renewable energy output it's taken us 35 years to reach. (Applause.) We'll provide tax credits and loan guarantees to companies that create this energy, allowing them to expand rather than lay people off. We'll fund the Energy Efficiency and Conservation Block Grant you conceived, saving our cities and our consumers money. (Applause.) We'll build a bigger, better, smarter electricity grid that delivers clean energy from communities that produce it to the cities that need it.

So these are the steps we're taking to help you turn this crisis into opportunity and bring our cities into the future. Now, Washington can't solve all the problems facing our cities -- and I know you don't expect us to. Instead of waiting for Washington, many of you have already made our cities laboratories of change, coming up with innovative new ways to solve the problems of our time.

One of the great pleasures of running for President was having a chance to see great work on renewable energy in Des Moines or, you know, seeing what kinds of wonderful companies are being created in Seattle, and hearing about some of the urban planning strategies that are taking place in Charleston. So all of you have already taken the ball and run with it, even when you weren't getting help from here. But it won't be bad to get some help because -- (applause.)

You know, instead of debating the existence of climate change, mayors like Greg Nickels in Seattle are leading efforts to make cities greener and more efficient. Instead of just talking about health care, mayors like Gavin Newsom in San Francisco have been ensuring that those in need receive it. Instead of wringing your hands over poverty, you've got Antonio in Los Angeles making relentless efforts to alleviate it.

You shouldn't have to succeed, though, despite Washington; you should be succeeding with a hand from Washington, and that's what you're going to get now. (Applause.)

Now, what is required in return, what I will need from all of you, is unprecedented responsibility and accountability on all of our parts. The American people are watching. They need this plan to work. They expect to see the money that they've earned, that they've worked so hard to earn, spent in its intended purposes without waste, without inefficiency, without fraud.

And that's why I'm assigning a team of managers to ensure that every dollar is spent wisely. And that's why we've created recovery.gov -- so that every American can go online to see how their money is spent, and hold their federal, state, and local officials to the highest standards they expect.

So I want to be clear about this: We cannot tolerate business as usual -- not in Washington, not in our state capitols, not in America's cities and towns. We will use the new tools that the recovery act gives us to watch the taxpayers' money with more rigor and transparency than ever. (Applause.) If a federal agency proposes a project that will waste that money, I will not hesitate to call them out on it and put a stop to it.

And I want everybody here to be on notice that if a local government does the same, I will call them out on it and use the full power of my office and our administration to stop it. We have asked for the unprecedented trust of the American people to deal boldly with the greatest economic crisis we've seen in decades and the privilege of investing unprecedented amounts of their hard-earned money to address this crisis. And with that comes unprecedented obligations to spend that money wisely -- free from politics and free from personal agendas.

On this, I will not compromise or tolerate any shortcuts. The American people are looking to us, each of you, as well as myself and Joe and others in our administration, for leadership, and it's up to us to reward their faith.

Now, this plan doesn't mark the end of what we'll do together. It marks the beginning. My administration has outlined plans to stabilize, repair and reform our banking system, to get credit flowing to families and businesses, to stem the spread of foreclosures and keep families in their homes. Together, we will tackle the urban challenges of our time and foster diverse, creative and imaginative economies that bring opportunity to every corner of our cities.

We'll do all this because despite the different backgrounds of the mayors in this room, we all share the same vision for our cities -- vibrant places that provide our children with every chance to learn and to grow, that allow our businesses and workers the best opportunity to innovate and succeed, that let our older Americans live out their best years in the midst of all that metropolitan life can offer.

I know this change is possible. I know because I saw it in all those years ago in neighborhoods on the South Side of Chicago, where ordinary Americans came together and worked alongside the mayor's office to forge a better future. I know because I've seen it in cities across this country, where many of you that I had a chance to meet with, I saw how you focused on fresh ideas over stale ideology, and you moved your cities forward. And I know it because I see it in the faces of Americans everywhere who are ready to roll up their sleeves and join in the work of remaking this nation.

So now it falls to us to seize the possibilities of this moment and convert peril into promise; see to it that our cities and our people emerge from this moment stronger than they were before. Starting today, that's what you and I are going to do -- together. And I'm absolutely confident that our people will benefit and people will look back and say that this was a turning point; this was a moment where, in the midst of great crisis, leadership was shown and we created a new platform for success for all Americans in the future.

Thank you so much, everybody. Appreciate it. (Applause.)

END
10:57 A.M. EST

On the front lines

Posted by Macon Phillips on February 20, 2009 at 11:07 AM EDT

President Obama meeting with the nation's mayors

"You're on the front lines," President Obama told a gathering of 85 mayors in the East Room of the White House this morning.

Mayors and governors have to keep balanced budgets, so they are familiar with the pain that comes with making cuts that broad and deep, he said.
President Obama listens to a question from one of the nation's mayors
And when that happens, people "turn to the mayor's office for help."

That's why the American Recovery and Reinvestment Act provides much needed assistance to states, cities, and towns that are in desperate need of it to keep from making major cuts in essential services, and to save jobs.

But more than that, by investing in health care, education, and infrastructure, the ARRA will "make our metropolitan areas more livable and sustainable."

In return, the President said he expects an unprecedented level of vigilance in making sure the money from the act is spent efficiently and wisely.

"We can't tolerate business as usual -- not in Washington, not in our state capitals, not in our cities and towns."

Vice President Joe Biden addresses the nation's mayors

White House photos 2/20/09 by Pete Souza

See more about Economy, Fiscal Responsibility

Setting the bar high

Macon Phillips

February 18, 2009
03:28 PM EDT

Just looking at Recovery.gov, it might not be immediately clear what an enormous undertaking it will be to ensure that the transparency and accountability that the President expects will be upheld. It's going to require an unprecedented level of vigilance, a fundamental shift in the way the federal government spends your tax dollars, from the Oval Office down to every department and agency awarding funds from the American Recovery and Reinvestment Act.

That's why Peter Orszag, the Director of the Office of Management and Budget (OMB), has sent a memo to the heads of those departments and agencies, explaining what's expected of them and offering advice for how to meet those high standards.

According to the memo, agencies will be expected to provide data which demonstrates that:

Funds are awarded and distributed in a prompt, fair, and reasonable manner;
The recipients and uses of all funds are transparent to the public, and the public benefits of these funds are reported clearly, accurately, and in a timely manner;
Funds are used for authorized purposes and instances of fraud, waste, error, and abuse are mitigated;
Projects funded under this Act avoid unnecessary delays and cost overruns; and
Program goals are achieved, including specific program outcomes and improved results on broader economic indicators.

Read the full memo.

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THE WHITE HOUSE

Office of the Press Secretary
_________________________________________________________________
For Immediate Release
February 6, 2009

As Prepared for Delivery

Good morning. I've just had the opportunity to welcome the members of my Economic Recovery Advisory Board. I’m grateful that I will have the counsel of these talented and experienced men and women in the challenging months to come.

And if there is anyone, anywhere, who doubts the need for wise counsel and bold and immediate action, consider the devastating news we just received this morning.

Last month, another six hundred thousand Americans lost their jobs. That is the single worst month of job loss in 35 years. The Department of Labor also adjusted their job loss numbers for 2008 upwards, and now report that we have lost 3.6 million jobs since this recession began.

That’s 3.6 million Americans who wake up every day wondering how they are going to pay their bills, stay in their homes, and provide for their children. That’s 3.6 million Americans who need our help.

I am sure that at the other end of Pennsylvania Avenue, members of the Senate are reading these same numbers this morning. I hope they share my sense of urgency and draw the same, unmistakable conclusion: the situation could not be more serious. These numbers demand action. It is inexcusable and irresponsible to get bogged down in distraction and delay while millions of Americans are being put out of work. It is time for Congress to act. It is time to pass an Economic Recovery and Reinvestment Plan to get our economy moving again.

This is not some abstract debate. It is an urgent and growing crisis that can only be fully understood through the unseen stories that lie underneath each and every one of those lost jobs. Somewhere in America, a small business has shut its doors; a family has said goodbye to their home; a young parent has lost their livelihood, and doesn’t know what’s going to take its place.

These Americans are counting on us. All of us in Washington must remember that we’re here to work for the American people. And if we drag our feet and fail to act, this crisis will turn into a catastrophe. We’ll continue to get devastating job reports like today’s – month after month, year after year. These aren’t my assessments – these are the assessments of independent economists. Millions of jobs will be lost. More families will lose their homes. More Americans will go without health care. We’ll continue to send our kids to crumbling schools, and be crippled by our dependence on foreign oil.

That is the result of the inaction, and it is completely unacceptable to the American people.

The American people did not choose more of the same. They did not send us to Washington to get stuck in partisan posturing, or to turn back to the same tried and failed approaches that were rejected in the last election. They sent us here with a mandate for change, and the expectation that we would act.

The bill before Congress isn’t perfect, but it is absolutely necessary. We will continue to refine it and improve it. There may be provisions in the bill that need to be left out and some that need to be added. But broadly speaking, it is the right size. It is the right scope. It has the right priorities to create 3 to 4 million jobs and to do it in a way that lays the groundwork for long term growth by fixing our schools; modernizing health care to lower costs; repairing our roads, bridges, levees, and other vital infrastructure; and moving us towards energy independence. It is what America needs right now. It will take months – even years – to renew our economy. But every day that Washington fails to act, that recovery is delayed.

Now we also know that no single act can meet the challenges of this moment. This is just the beginning of a long journey back to progress and prosperity. Given the scope of this crisis, we need an all hands on deck approach to forging our recovery. I am pleased to have an extraordinary economic team, with Tim Geithner at Treasury, and Larry Summers, Christina Roemer and Peter Orszag here in the White House. I also want to be sure that we’re tapping a broad and diverse range of opinion from across the country, because an historic crisis demands an historic response. That is why we took the unique step of creating the new institution whose members have gathered here today.

To put it simply, I created this Board to enlist voices that come from beyond the echo chamber of Washington, DC, and to ensure that no stone is unturned as we work to put people back to work and to get our economy moving. We will meet regularly so that I can hear different ideas and sharpen my own, and seek counsel that is candid and informed by the wider world.

The Board is headed by Paul Volcker, who by any measure is one of the world’s most experienced and insightful economic minds. He has advised me for many months, and he has helped steer the American economy through many twists and turns. I’m glad that Paul has decided to continue his public service at this critical moment. Assisting Paul and the rest of the Board will be Austan Goolsbee, who has long been one my closest economic advisors, and who will ensure that we are making the best possible use of this unique resource.

I’m not interested in groupthink, which is why the Board reflects a broad cross-section of experience, expertise, and ideology. We’ve recruited Republican and Democrats; veterans of government and the private sector; advocates for business and labor. Not everyone is going to agree with each other, and not all of them are going to agree with me – and that’s precisely the point. Because we want to ensure that our policies have the benefit of independent thought and vigorous debate.

I will also count on these men and women to serve as additional eyes and ears for me as we work to reverse this downturn. Many of them have a ground-level view of the changes that are taking place, as they work across different sectors of the economy and different regions of the country. They can help us see the trends that are not fully formed, the trouble that may be on the horizon, and the opportunities that have yet to be seized. I look forward to relying on their input and recommendations on specific questions as we jumpstart job creation and pursue strong and stable economic growth.

This new institution should send a signal of how seriously I take the responsibility of building an economic recovery that is broad and enduring. These are extraordinary times. For far too many Americans, the future is filled with unanswered questions. Can I get a job? Will my family be able to stay in our home? Will I be able to retire with dignity, and see my kids or grandkids lead a better life?

Those are the questions that we must answer affirmatively in the life of this Administration, so that we create the jobs our people need and the future that a great nation deserves. Those are the challenges that my economic team, and these distinguished advisors, will be tackling in the months and years to come. Thank you.

THE WHITE HOUSE

Office of the Press Secretary
----------------------------------------------
For Immediate Release February 6, 2009

EXECUTIVE ORDER
- - - - - - -
Establishing the President's Economic Recovery Advisory Board

By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to enhance the strength and competitiveness of the Nation's economy and the prosperity of the American people by ensuring the availability of independent, nonpartisan information, analysis, and advice to the President as he formulates and implements his plans for economic recovery, it is hereby ordered as follows:

Section 1. There is hereby established within the Department of the Treasury the President's Economic Recovery Advisory Board (PERAB). The PERAB shall consist of not more than 17 members, who shall be appointed by the President from among distinguished citizens from outside the Government who are qualified on the basis of achievement, experience, independence, and integrity. The overall membership of the PERAB shall reflect a diverse set of perspectives from across the country and from various sectors of the economy. The President shall designate a Chair from among the members. The Chair shall appoint a Staff Director, who shall supervise the staff of the PERAB.

Sec. 2. The functions of the PERAB are advisory only. The PERAB shall meet regularly and shall:

(a) solicit information and ideas from across the country and from all sectors of our economy about the functioning of the economy, the condition of the financial and banking system, and the prosperity of the American people and of American industry that can serve to inform the decisionmaking of the President, and, with respect to matters deemed appropriate by the President, provide information and recommendations to any other agency with responsibilities related to the economy or financial markets or to the National Economic Council;

(b) report directly to the President on the design, implementation, and evaluation of policies to promote the growth of the American economy, establish a stable and sound financial and banking system, create jobs, and improve the long-term prosperity of the American people; and

(c) provide analysis and information with respect to the operation, regulation, and healthy functioning of the economy and of the financial and banking system. As deemed appropriate by the President, this analysis and information shall be provided to the Chairman of the Board of Governors of the Federal Reserve System, to any other agency with responsibilities related to the economy or financial markets, or to the National Economic Council.

Sec. 3. Administration of the PERAB. (a) All executive departments and agencies and all entities within the Executive Office of the President shall cooperate with the PERAB and provide such information and assistance to the PERAB as the PERAB may request, to the extent permitted by law.

(b) The Department of the Treasury shall provide funding and administrative support for the PERAB to the extent permitted by law and within existing appropriations.

(c) Members of the PERAB shall serve without compensation but may receive transportation expenses, including per diem in lieu of subsistence, as authorized by law for persons serving intermittently in the Government (5 U.S.C. 5701-5707), consistent with the availability of funds.

Sec. 4. Termination. The PERAB shall terminate 2 years after the date of this order unless extended by the President.

Sec. 5. General Provisions. (a) Insofar as the Federal Advisory Committee Act, as amended (5 U.S.C. App.) (the "Act"), may apply to the PERAB, any functions of the President under the Act, except for those in section 6 of the Act, shall be performed by the Secretary of the Treasury in accordance with the guidelines that have been issued by the Administrator of General Services.

(b) Nothing in this order shall be construed to impair or otherwise affect:

(i) authority granted by law to a department or agency, or the head thereof; or

(ii) functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(d) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

BARACK OBAMA

THE WHITE HOUSE,
February 6, 2009.

New rules

Macon Phillips

February 04, 2009
02:51 PM EDT

"Shameful." That was the President's response last week to the news that Wall Street had doled out $18 billion in bonuses, even after the government had propped up many of the Street's most prominent firms.

President Obama delivering remarks on new executive compensation restrictions

Today, he and Treasury Secretary Tim Geithner took action by imposing new restrictions on executive compensation at firms taking money from the government.

"We all need to take responsibility," President Obama said. "And this includes executives at major financial firms who turned to the American people, hat in hand, when they were in trouble, even as they paid themselves customary lavish bonuses....[T]hat's exactly the kind of disregard of the costs and consequences of their actions that brought about this crisis: a culture of narrow self-interest and short-term gain at the expense of everything else."

Features in the new rules for companies receiving "exceptional assistance" from the government include a $500,000 cap on salaries for senior executives (compensation beyond that must be in restricted stock), expanded bans on golden parachutes, and increases to "clawback" provisions.

Read the President's full remarks below.

White House photo 2/4/09 by Joyce N. Boghosian)

REMARKS BY THE PRESIDENT
ON EXECUTIVE COMPENSATION
Grand Foyer, The White House
Febuary 4, 2009

THE PRESIDENT: Thank you, Tim, for your hard work on this issue and on the economic recovery.

The economic crisis we face is unlike any we've seen in our lifetime. It's a crisis of falling confidence and rising debt, of widely distributed risk and narrowly concentrated reward; a crisis written in the fine print of sub-prime mortgages, on the ledger lines of once mighty financial institutions, and on the pink slips that have upended the lives of so many people across this country and cost the economy 2.6 million jobs last year alone.

We know that even if we do everything that we should, this crisis was years in the making, and it will take more than weeks or months to turn things around.

But make no mistake: A failure to act, and act now, will turn crisis into a catastrophe and guarantee a longer recession, a less robust recovery, and a more uncertain future. Millions more jobs will be lost. More businesses will be shuttered. More dreams will be deferred.

And that's why I feel such a sense of urgency about the economic recovery and reinvestment plan that is before Congress today. With it, we can save or create more than three million jobs, doing things that will strengthen our country for years to come. It's not merely a prescription for short-term spending -- it's a strategy for long-term economic growth in areas like renewable energy and health care and education.

Now, in the past few days I've heard criticisms that this plan is somehow wanting, and these criticisms echo the very same failed economic theories that led us into this crisis in the first place -- the notion that tax cuts alone will solve all our problems; that we can ignore fundamental challenges like energy independence and the high cost of health care; that we can somehow deal with this in a piecemeal fashion and still expect our economy and our country to thrive.

I reject those theories. And so did the American people when they went to the polls in November and voted resoundingly for change. So I urge members of Congress to act without delay. No plan is perfect, and we should work to make it stronger. No one is more committed to making it stronger than me. But let's not make the perfect the enemy of the essential. Let's show people all over the country who are looking for leadership in this difficult time that we are equal to the task.

At the same time, we know that this recovery and reinvestment plan is only the first part of what we need to do to restore prosperity and secure our future. We also need a strong and viable financial system to keep credit flowing to businesses and families alike. And my administration will do whatever it takes to restore our financial system. Our recovery depends on it. And so in the next week, Secretary Geithner will release a new strategy to get credit moving again -- a strategy that will reflect some of the lessons of past mistakes while laying the foundation of the future.

But in order to restore trust in our financial system, we're going to have to do more than just put forward our plans. In order to restore trust, we've got to make certain that taxpayer funds are not subsidizing excessive compensation packages on Wall Street.

We all need to take responsibility. And this includes executives at major financial firms who turned to the American people, hat in hand, when they were in trouble, even as they paid themselves customary lavish bonuses. As I said last week, this is the height of irresponsibility. It's shameful. And that's exactly the kind of disregard of the costs and consequences of their actions that brought about this crisis: a culture of narrow self-interest and short-term gain at the expense of everything else.

This is America. We don't disparage wealth. We don't begrudge anybody for achieving success. And we certainly believe that success should be rewarded. But what gets people upset -- and rightfully so -- are executives being rewarded for failure, especially when those rewards are subsidized by U.S. taxpayers, many of whom are having a tough time themselves.

For top executives to award themselves these kinds of compensation packages in the midst of this economic crisis isn't just bad taste -- it's bad strategy -- and I will not tolerate it as President. We're going to be demanding some restraint in exchange for federal aid -- so that when firms seek new federal dollars, we won't find them up to the same old tricks.

As part of the reforms we're announcing today, top executives at firms receiving extraordinary help from U.S. taxpayers will have their compensation capped at $500,000 -- a fraction of the salaries that have been reported recently. And if these executives receive any additional compensation, it will come in the form of stock that can't be paid up until taxpayers are paid back for their assistance.

Companies receiving federal aid are going to have to disclose publicly all the perks and luxuries bestowed upon senior executives, and provide an explanation to the taxpayers and to shareholders as to why these expenses are justified. And we're putting a stop to these kinds of massive severance packages we've all read about with disgust; we're taking the air out of golden parachutes.

We're asking these firms to take responsibility, to recognize the nature of this crisis and their role in it. We believe that what we've laid out should be viewed as fair and embraced as basic common sense.

And finally, these guidelines we're putting in place are only the beginning of a long-term effort. We're going to examine the ways in which the means and manner of executive compensation have contributed to a reckless culture and a quarter-by-quarter mentality that in turn helped to wrought havoc in our financial system. We're going to be taking a look at broader reforms so that executives are compensated for sound risk management, and rewarded for growth measured over years, not just days or weeks.

We all have to pull together and take our share of responsibility. That's true here in Washington. That's true on Wall Street. The American people are carrying a huge burden as a result of this economic crisis: bearing the brunt of its effects as well as the cost of extraordinary measures we're taking to address them. The American people expect and demand that we pursue policies that reflect the reality of this crisis -- and that will prevent these kinds of crises from occurring again in the future.

Thank you very much.

Related Topics: Economy, Fiscal Responsibility

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THE WHITE HOUSE

Office of the Press Secretary
_________________________________________________________________
For Immediate Release

February 4, 2009

Remarks by President Barack Obama on Executive Compensation with Secretary Geithner

      Thank you, Tim, for your hard work on this issue and on our economic recovery.

      The economic crisis we face is unlike any we’ve seen in our lifetime. It’s a crisis of falling confidence and rising debt. Of widely distributed risk and narrowly concentrated reward. A crisis written in the fine print of sub-prime mortgages, on the ledger lines of once-mighty financial institutions, and on the pink slips that have upended lives and cost the economy 2.6 million jobs last year alone.

      We know that even if we do everything we should, this crisis was years in the making, and it will take more than weeks or months to turn things around.

      But make no mistake:

      A failure to act, and act now, will turn crisis into a catastrophe and guarantee a longer recession, a less robust recovery, and a more uncertain future. Millions more jobs will be lost. More businesses will be shuttered. More dreams will be deferred.

      That’s why I feel such a sense of urgency about the Economic Recovery and Reinvestment Plan that is before Congress today. With it, we can save or create more than three million jobs, doing things that will strengthen our country for generations to come. It is not merely a prescription for short-term spending – it’s a strategy for long-term economic growth in areas like renewable energy, health care, and education.

      Now, in the past few days I’ve heard criticisms of this plan that echo the very same failed theories that helped lead us into this crisis – the notion that tax cuts alone will solve all our problems; that we can ignore fundamental challenges like energy independence and the high cost of health care and still expect our economy and our country to thrive.

      I reject that theory, and so did the American people when they went to the polls in November and voted resoundingly for change. So I urge members of Congress to act without delay. No plan is perfect, and we should work to make it stronger. But let’s not make the perfect the enemy of the essential. Let’s show people all over our country who are looking for leadership in this difficult time that we are equal to the task.

      At the same time, we know that this Recovery and Reinvestment plan is only the first part of what we need to do to restore prosperity and secure our future. We also need a strong and viable financial system to keep credit flowing to businesses and families alike. My administration will do what it takes to restore our financial system; our recovery depends upon it. And so next week, Secretary Geithner will release a new strategy to get credit moving again – a strategy that will reflect the lessons of past mistakes while laying a foundation for the future.

      But in order to restore our financial system, we’ve got to restore trust. And in order to restore trust, we’ve got to make certain that taxpayer funds are not subsidizing excessive compensation packages on Wall Street.

      We all need to take responsibility. And this includes executives at major financial firms who turned to the American people, hat in hand, when they were in trouble, even as they paid themselves their customary lavish bonuses. As I said last week, that’s the height of irresponsibility. That’s shameful. And that’s exactly the kind of disregard for the costs and consequences of their actions that brought about this crisis: a culture of narrow self-interest and short-term gain at the expense of everything else.

      This is America. We don’t disparage wealth. We don’t begrudge anybody for achieving success. And we believe that success should be rewarded. But what gets people upset – and rightfully so – are executives being rewarded for failure. Especially when those rewards are subsidized by U.S. taxpayers.

      For top executives to award themselves these kinds of compensation packages in the midst of this economic crisis is not only in bad taste – it’s a bad strategy – and I will not tolerate it as President. We’re going to be demanding some restraint in exchange for federal aid – so that when firms seek new federal dollars, we won’t find them up to the same old tricks.

      As part of the reforms we are announcing today, top executives at firms receiving extraordinary help from U.S. taxpayers will have their compensation capped at $500,000 – a fraction of the salaries that have been reported recently. And if these executives receive any additional compensation, it will come in the form of stock that can’t be paid up until taxpayers are paid back for their assistance.

      Companies receiving federal aid are going to have to disclose publicly all the perks and luxuries bestowed upon senior executives and provide an explanation to the taxpayers and to shareholders as to why these expenses are justified. And we’re putting a stop to these kinds of massive severance packages we’ve all read about with disgust; we’re taking the air out of the golden parachute.

      We’re asking these firms to take responsibility, to recognize the nature of this crisis and their role in it. We believe that what we’ve laid out should be viewed as fair and embraced as basic common sense.

      Finally, these guidelines we’re putting in place are only the beginning of a long-term effort. We’re going to examine the ways in which the means and manner of executive compensation have contributed to a reckless culture and quarter-by-quarter mentality that in turn have wrought havoc in our financial system. We’re going to be taking a look at broader reforms so that executives are compensated for sound risk management and rewarded for growth measured over years, not just days or weeks.

      We’ve all got to pull together and take our share of responsibility. That’s true here in Washington. That’s true on Wall Street. The American people are carrying a huge burden as a result of this economic crisis: bearing the brunt of its effects as well as the costs of extraordinary measures we’re taking to address it. The American people expect and demand that we pursue policies that reflect the reality of this crisis – and that will prevent these kinds of crises in the future.

      Thank you.

THE WHITE HOUSE

Office of the Press Secretary
_________________________________________________________________
For Immediate Release

February 2, 2009

PRESS BRIEFING BY PRESS SECRETARY ROBERT GIBBS

James S. Brady Press Briefing Room

1:49 P.M. EST

MR. GIBBS: How are you guys? Happy Groundhog Day.

Q Same to you.

MR. GIBBS: Let me make a couple of quick announcements and some stuff and then we'll take some of your questions.

At the invitation of Senator Dick Durbin, President Obama will travel to Springfield, Illinois, on Tuesday, February 12th, to attend the commemoration of Lincoln's 200th birthday. He will attend and speak at the banquet there -- for your travel planning purposes.

Secondly, the President spoke with -- and we'll have a readout shortly -- with Prime Minister Maliki and President Talabani in Iraq this morning. So we'll have some more information on that.

And then before I take questions, let me just go through -- obviously this is another important week for the economic recovery package as it winds it way now through the Senate. You saw the President met with NGA Vice Chair, Republican Governor Jim Douglas of Vermont, who I think spoke to the needs of the people that live in his state, in Vermont. They've seen the unemployment rate go from 3.9 percent one year ago to 6.4 percent last month. We'll get new economic and unemployment numbers, as you well know, on Friday.

But the President understands, and I think Congress does, too, that the American people are hurting and are in need of some help. Each and every day we hear and the American people hear the stats, the government statistics that underscore the challenges that we face as a people and that we face as a country.

The President is pleased with the package that passed the House. Undoubtedly that package will be strengthened and changed some through the process, but it meets the test that the President laid out originally to, first and foremost, create jobs immediately and to strengthen, for the long term, our economic growth. Again, first and foremost, the plan, the President believes, will save or create 3 to 4 million new jobs -- 3 to 4 million jobs, and put people immediately back to work, which is what's needed in this economy.

The plan also invests in the jobs of tomorrow through long-term investments, as I said, to help sustainable economic growth. One example is in alternative energy, doubling renewable energy generating capacity in just three years, and make ourselves less dependent on foreign oil. Secondly, the bill contains -- not just for a bill this size, but for any piece of legislation -- unprecedented accountability and transparency. There are no earmarks in this bill. The information on the projects that will be funded in this legislation will be available online, as you know, at www.recovery.gov. There will be an oversight board that will monitor the progress of each project and address any problems that are involved early and aggressively.

Third, as you know, there's a major investment in this plan in infrastructure. The Senate bill alone contains about $123 billion, again, that will create jobs not just immediately, but lay the foundation for more job growth in the future. Whether it's that new energy economy, whether we are building roads or bridges, or fixing waterways, or investing in long-delayed flood control projects, or creating 21st century classrooms in our schools, this plan makes those necessary and often ignored investments.

Next, this bill also puts needed money back into consumers' pockets, the consumers that need it the most -- middle class families that have seen their wages decline far longer than what the economists say this recession -- for the length of this recession.

So taken as a whole, this proposal will invest in America today by creating jobs, but it will pave the way for sustained economic growth through long-term investments that America and families all across the country so desperately need.

So I'll take a few questions. Ms. Loven.

Q Thank you. On Tom Daschle -- I just want to step back just a minute -- I understand the President's remarks that he absolutely stands by him. But if you could just take a step back, you've got two nominees now who have had to pay more than $100,000 in back taxes. That's an awful lot of money. That's more than most people in the country make in a year, much less that they owe in taxes. What kind of a message does this send, do you think? How are people supposed to kind of get their heads around that and accept that as top people in your administration?

MR. GIBBS: Well, let me also step back and say that no one in this building or in this administration is insensitive to the report that we were -- that was given this weekend about Senator Daschle. I think that includes Senator Daschle. He discovered a mistake, mistakes he'd made on his taxes, and he's paid now what he owed and paid interest on that.

As it relates to Senator Daschle -- and I know he's meeting with the Finance Committee now -- we believe that the committee and the Senate as a whole will examine not just one mistake in a career, but look at that longer, three-decade career of public service, serving this country, serving the constituents both in South Dakota and across America.

The President believes that Senator Daschle is the right person for the very important job of ensuring that we cut costs, reform our health care system, and finally give the American people in health care the outcomes that they deserve. We spend more money on health care than any other nation in the country [sic], but don't get the quality of care that many other countries get.

So again, I think the Senate will lay a serious but corrected mistake against that three-decade career in public service. And in the end, the Finance Committee and the Senate as a whole will vote to extend his career in public service so that he can take on the very important task to America to reform that health care system and cut our costs.

Q Is the President at all embarrassed by this? And does he see that there's any problem in the vetting that you all do --

MR. GIBBS: I don't think that we believe there's any problem in the vetting. When I say that no one is insensitive to the report in this building, that includes the President of the United States. He understands that.

Yes, sir.

Q The President is meeting with Secretary Gates today. Will they be discussing the Pentagon's recommendations for troop increases in Afghanistan? Any idea how long it will take for him to act on --

MR. GIBBS: I don't know exactly what is on the itinerary. This is part of what will be a standing meeting with the President and the Secretary of Defense. I'm a little leery of the some of the news reports about the President and the Secretary discussing an increase in 15,000 troops because I'm reminded that just four weeks ago, the then President-elect, without the constitutional authority to do so -- according to many of the newspapers I read and some of the cable television I watched -- approved 30,000 troops to Afghanistan. So I'm a tad leery to get ahead of --

Q Well, which is right?

MR. GIBBS: Well, Helen, you appropriately ask and when the President stands up at a podium not unlike this one and announces the end of the administration's review of our policy in Afghanistan and our troop levels -- not just in Afghanistan, but as it relates to Iraq -- I think we'll have a more definitive answer that doesn't rely on what may not be decisions that are at this point fully made.

Q Robert, this morning the President spoke about narrow differences with Republicans on the stimulus plan. When you hear some of the Republican senators on Sunday talk shows they sound like it's not a narrow difference, they want to chuck whole sections of the bill that's working through the Senate. Is there a gulf there between what the President is saying and what Republicans in the Senate are saying, number one? And number two, are there specific things you want out? You've previously been outspoken about removing provisions -- there's this STD prevention provision, for example, a lot of Republicans have been going after -- are there specific things you want to keep in there or take out?

MR. GIBBS: Well, let's focus -- I watched -- I didn't watch many of the news shows; I read some transcripts; I read press releases from Senate Republicans, one last week about what they deemed unnecessary spending, which I think when you accumulated it up they added up to $699 million. The reason I'm here is because I'm not very good at math. But that amounts to 7/100ths of 1 percent of a piece of legislation that the American people desperately need to get back to work.

I know there's a tendency to focus on that 7/100ths of 1 percent.

Q But when you have Democrats like Ben Nelson, for example, saying he wants to turn this into a jobs bill instead of a spending bill, it doesn't sound like that seven, you know, of 1 percent -- it sounds like a big, big difference.

MR. GIBBS: I think what the President would tell Senator Nelson, the President would tell any senator, and what he'll tell Democrats when they come down to the Hill -- come down to the White House later today, he's satisfied that we have the basis of a proposal that will save or create 3 to 4 million jobs, and that the American people can be confident of that. We've got an investment in infrastructure unlike we've seen since the 1950s in the institution of the Interstate Highway System under President Eisenhower. We're putting money back in people's pockets that need it the most and who are likely -- not simply because of their declining income, but their increasing bills -- they will spend that money and get the economy moving again.

Again, I think that what you are watching and what you see sometimes on the Sunday shows is an argument about a very small portion of a piece of legislation. I think the President believes, and his team believes, that if members will step back and look at not just 7/100ths of 1 percent -- you heard me say this last week -- but the 93/100ths of the 99 percent of the legislation, that you'll find -- somebody did the math for me -- (laughter) -- you'll find that this meets the President's standard of stimulating the economy, creating jobs, investing in our long-term economic growth through creating jobs in things like a new energy economy that will also make us less dependent on foreign oil; that we do so in a way that's accountable and transparent to taxpayers; and we do it in a way that gets that money quickly into this economy; that delaying is -- delay in this town may not mean much, but delay in America means that the help that the American people need right now won't get to them as quickly as they need it to.

Q Can you just clarify the jobs number, too -- last thing. You just said 3 to 4 million jobs. The President two weekends ago in his radio address used that figure. But this past weekend he said over 3 million jobs. He didn't say 3 to 4 [million jobs], number one. And number two, during the transition -- during the transition, he had said that the jobs number would be created over his first two years in office --

MR. GIBBS: This is a two-year bill. The bill that we're talking about is a two-year bill.

Q In his radio address over the weekend, he said over the next few years. He didn't say over the next two years. Can you just clarify --

MR. GIBBS: I'll certainly go back and --

Q -- what is the presidential promise to the American people about how many --

MR. GIBBS: I'll go back and look at it, Ed. For purposes of this event, 3 to 4 million jobs saved or created. Again --

Q Over two years or --

MR. GIBBS: Yes. I mean, we -- I'll go back and we'll clarify what all the different numbers are, but the bottom line is this: You've got a piece of legislation that creates jobs. You know, we can -- and certainly there's going to be -- the process will go forward. This bill will go to the Senate. There will be amendments that will -- that may change this or that. We've already seen the -- probably the biggest amendment in either House so far was authored by a Republican to add tax cuts to the proposal. So I think the notion that somehow people -- Republicans aren't involved in this process is about $70 billion off.

Jake.

Q Two questions. One, on Tom Daschle, is the President at all concerned that the continuing problem of members of your Cabinet, or aspiring members of your Cabinet, to pay their taxes according to the law will undercut either the President's rhetoric on an era or responsibility, or the fact that your health plan and your tax plans going forward are likely going to be asking American -- some Americans to pay more in taxes?

And then the second question, to follow up on one of Ed's things, what would the President like to see added to the stimulus package so as to attract Republican supporters, since obviously the leaders of the House and Senate -- Democratic leaders of the House and Senate aren't reaching out enough to do so.

MR. GIBBS: I think I'd dispute the -- at least the last phrase of that question. I mean, I think, unless I read Senator Schumer's remarks incorrectly in the paper today, I think there will be proposals voted on this week to increase the money that's involved for infrastructure despite the money that's already there. I think that's -- was certainly something Republicans mentioned when the President met last week. I think there's -- they may add money on a tax cut for home ownership that I think is offered by a Republican.

I would, first of all, I guess, begin by disputing the notion that somehow --

Q Okay, forget the last clause. What do you want to see added to the bill?

MR. GIBBS: Well, I -- any idea that we think will help make this bill better.

Q Robert, specifically what?

MR. GIBBS: Well, I'm going to leave the legislating to the legislators. The President believes the basis for what we have right now is quite good. Obviously this bill will go through the process and likely will be strengthened as we go forward. Whether that's adding money for homeowners, whether that's adding money for additional infrastructure, the President will certainly look at that. Obviously those are cares and concerns of his. But again, that's something that will happen up on Capitol Hill and the President looks forward to the process continuing in a timely way to get help to the American people.

Q I had a question about Tom Daschle, too.

MR. GIBBS: Well, hit that again. I was just --

Q Whether or not the President is at all concerned that with Geithner and now with Daschle, all these -- almost $200,000 in unpaid taxes, that this is going to undercut the President's cry for an era of responsibility, or the fact that he's --

MR. GIBBS: No, I mean --

Q -- going to be asking for people to pay more in taxes.

MR. GIBBS: Well, let's not -- I don't want to get ahead of budget discussions or what have you --

Q He said it on the campaign trail, that he's going to ask for some people to pay more in taxes.

MR. GIBBS: Right. The President, again, is not insensitive to -- at all -- to the reports that are out there, but believes that both Secretary Geithner and Secretary-designate Daschle are the right people for very important jobs, and he does not believe that that will undercut their ability to move forward on a agenda that makes sense for the American people.

Q You said you're going to leave the legislating to the legislators. Is the President leaving the legislating to the legislators? Is he not getting -- are you suggesting that --

MR. GIBBS: No, I think he's going --

Q -- he's not getting involved in specifics?

MR. GIBBS: No, I'm not going to get into amendment voting. I've received far fewer than the necessary number of votes to participate actively as a member of the United States Senate.

Q But he is getting in there and telling them what he likes in terms of particular programs and proposals, right?

MR. GIBBS: The President is going to meet with -- you know, obviously the President had members of Congress over last night for the Super Bowl. The President will meet with leaders from -- Democratic leaders from the House and the Senate later this afternoon here at the White House. I think the first message he have -- will have for them is thanking them for their speedy work on getting this process -- this important process for the American people started. The House and the Senate thus far have -- the House has moved forward on an economic recovery plan. We've got a fair pay piece of legislation that's made it through both chambers and landed on the President's desk, that he signed. We anticipate, with some work this week, that additional legislation covering 4 to 5 million more children that currently lack health care will be up for the President's signature.

So there's a lot to thank Congress for already in just the first two weeks of this administration. They will talk about how to move forward on the recovery plan. No doubt they'll talk about ways to strengthen the bill as we go forward. The President is actively involved in the discussions on how to get this passed. You saw it today with the Republican governor here from Vermont.

Q But is he getting down in the weeds? Is he really getting down to the level of specific programs?

MR. GIBBS: Let's hope not. (Laughter.) I think that's some of what we have staff for --

Q On Daschle, one question. Some of his defenders on the Hill and in the administration are calling this a bump in the road. Does the President consider failure to pay over $100,000 in taxes a bump in the road?

MR. GIBBS: The President understands that the report that we saw this weekend is very serious, that Senator Daschle is going to meet with the committee and talk with them about the concerns that they have. The President also believes that Senator Daschle continues to be the right person for the job of -- the very big job of making sure our health care system works for everyday Americans.

Chuck.

Q I was struck by your opening statement in that it seemed to be a reiteration of talking points that you've used on the stimulus before, rather than some sort of new --

MR. GIBBS: That seemed a bit gratuitous -- (laughter.)

Q Do you feel like you were losing -- that basically the Republicans have done a better job of framing your bill?

MR. GIBBS: No, I -- if I can be equally gratuitous, I think there's a tendency in this town, as I said, to cover 7/100ths of 1 percent of a piece of legislation.

Q And by focusing on that it seems like you are acknowledging that --

MR. GIBBS: Where I'm focusing is --

Q -- that having to answer for 7/100ths of 1 percent that somebody else is --

MR. GIBBS: They've clearly gotten you to do that.

Q I don't know if I speak for --

MR. GIBBS: But again, let's step back and understand what the basis of this legislation is and what it does. That's why economists from Democrats and Republicans, liberal and conservative, believe that this is a good bill; that it will move this economy forward, put people back to work, make the investments that we've ignored for years and years and years, do so in a way that is accountable and transparent to the American taxpayers, and will put money back in middle-class pockets.

Q And on the -- Senator Daschle, is the President concerned -- you've written the executive order about lobbying and the administration, Congress has passed laws about former members -- but is the President concerned of how easily -- how easy it is for former members to essentially cash in and make seven-figure salaries so quickly? Yes, they're not registering to lobby, and you went through this very meticulously last week. You were asked a question about George Mitchell, well, he doesn't technically lobby. Well, somebody is paying Senator Daschle a lot of money to advise them maybe on how to lobby or something. Does that concern the President that it's so easy in this town, that the way Washington works --

MR. GIBBS: Well, I -- Chuck, I think that the American people voted to change the way Washington works, and that's what the President is working on doing. Whether it's in how government conducts its business, or in how we get a recovery plan to put people back to work; whether it's restoring our image and respect in the world; whether it's making the investments in energy and health care and education that we for so long neglected, I think all of that is --

Q Going to Jake's question, don't you worry that Senator Daschle getting there -- essentially undercuts --

MR. GIBBS: No, I don't -- my answer to Jake's question is the same --

Q -- but actually undercuts the image that you're trying to --

MR. GIBBS: No, I don't believe it does. Nobody is perfect. It was a serious mistake, one that he caught and remedied. We think he is still the best person to do health care reform and shepherd that very complicated process through Congress to achieve savings and cut costs for the American people.

Jon.

Q In both those cases, the Geithner case and the Daschle case, you've had that line. You said that Tim Geithner was the perfect and only candidate who could handle that job at this time. You're now saying that Tom Daschle --

MR. GIBBS: I don't think I said he was the only one. I think he was the best suited.

Q But -- and Tom Daschle now is the best suited for this particular job. But when does President Obama say, look, I campaigned against the ways of Washington and it's time to take a stand. And we are -- we're seeing information coming out about -- about Senator Daschle that you were privy to, that the Obama transition office was privy to, for quite some time. You pushed ahead; so it wasn't a question of vetting. It was a question of you deciding that these -- the infraction was not worth pulling the name. And I'm wondering when -- what would be worth pulling the name?

MR. GIBBS: Well, I -- we could get into all sorts of hypotheticals. But I think the last part that you touched on is a reiteration of what I've said earlier. It's a serious mistake, but laying that mistake next to a three decade career in public service, the President believes that Senator Daschle is still the best suited to shepherd health care reform through Congress and get something to the President's desk that will save the American people money and make the quality of health care far better. That's the -- that's what he -- that's what he sought when he looked for people to enter this administration, and we believe that the team that we've assembled and that is being approved by the Senate meets that test and will improve the lives of the American people.

Yes, sir.

Q When was the last time the President spoke to Senator Daschle about this serious but corrected mistake?

MR. GIBBS: I don't know the answer to that.

Q Do you know when the last time he spoke to him about anything was?

MR. GIBBS: No, I just said I don't know the answer to when --

Q Has he spoken to him specifically about this?

MR. GIBBS: I don't know if he has or not.

Yes.

Q Robert, you've used the word "strengthen" on the stimulus package several times today. What things would be deemed to be strengthening in this legislation, and will that be a topic of the meeting later this afternoon?

MR. GIBBS: Well, as I said, I -- it will be a topic of the meeting, along with -- well, again, I'm going to do this and do this in a way not different than the way I did it with Jake when he asked largely an analogous question without using the word I used. They're going to discuss what's in the bill, how the process is likely to change. Obviously you've got -- how the process is likely to change -- yes, and I mean, there's no question that you've got -- you've already got a different bill in the Senate than you did in the House. I think today also begins the process that is going to be -- going to have to undertake in order to reconcile those two bills and meet the President's deadline of getting something quickly to the American people.

Q Can you say, does it mean a bit more tax cuts, for example, more green projects? Give us --

MR. GIBBS: Again, there's proposals in the Senate to change and alter parts of the bill, whether it's infrastructure or tax cuts. We'll let the Senate work its will as it relates to this, as long as it meets the test that the President believes the legislation thus far meets, which is how do we save or create 3 to 4 million jobs? How do we put people back to work? How do we make the investments that we need to make right now, not just for the jobs -- for jobs to be created tomorrow, but for that sustained, long-term economic growth? All of those things are part of the bill, and all of those things will be topics of, I presume, of this meeting this afternoon.

Helen.

Q How far is the President willing to go to appease the Republicans in terms of home owners? He doesn't seem to be worried about foreclosures.

MR. GIBBS: Oh, I don't think that's true. I think you've not only seen the President talk about this throughout the transition and the campaign, also make commitments about how money would be spent in the future to ensure that home foreclosure is addressed. Again, the President said this more often and more eloquently than I have, that home foreclosure is not simply a problem for the person that lives in that home that's being foreclosed --

Q But he's going to drop it from the bill.

MR. GIBBS: Drop?

Q From the stimulus bill.

MR. GIBBS: Well, I think there's different proposals both in this bill and other vehicles that are moving in Congress to address different aspects of home foreclosure, be it bankruptcy provisions or homeownership rates or mortgage rates. This isn't, as the President has said, as I've said last week, this isn't the only thing that has to happen to this economy in order for it to get better. There's a financial stability package that will likely include some aspects to address homes and home foreclosures. There's a significant reregulation that needs to happen to ensure that the irresponsibilities that caused where we are now don't happen again. That's a meeting the President is going to have with bipartisan congressional leaders at the White House later this week.

So this isn't the only piece of legislation that will be moving, and it's not the only vehicle that the President strongly believes Congress must address to get the economy moving again.

Q But it won't be in this package.

MR. GIBBS: Well, when you say "this," there's a lot of different home foreclosure things that this administration and members on Capitol Hill are working on, a lot moving forward.

Yes, sir.

Q A couple on Daschle and a follow-up on a separate topic, if I may. When --

MR. GIBBS: Haven't you already asked, like, four questions -- (laughter.)

Q I want to get to Jonathan's question -- (laughter.)

Is there an amount of money in unpaid back taxes for any nominee to the President's Cabinet that would be considered disqualifying?

MR. GIBBS: As I said to Jonathan, I'm not going to get into hypotheticals as it relates to that.

Q Is there anything that you could tell the American public to make them as comfortable as the President is with the fact that after he left Congress, Senator Daschle gave speeches and at times received income from some of the very same industries in health care that he would be taking a large role in supervising and regulating as Secretary of Health and Human Services

MR. GIBBS: Well, I can tell the American people that Senator Daschle, our Secretary-designate, when he's approved by the committee and by the full Senate, will follow closely the ethical guidelines and rules of this administration, and won't deal specifically with those entities.

Q Okay. Why is Judd Gregg at the top of the list for Commerce? And just as a general principle, does the President believe the Democratic Party -- the Democratic governor should fill vacancies created in the Senate with Democrats?

MR. GIBBS: Well, I'm not going to get ahead of the President on making personnel announcements. We hope to announce a --

Q The White House said this weekend he's the leading candidate. I'm just curious why.

MR. GIBBS: I read those articles. (Laughter.) I'm not going to get into -- obviously the President has great respect for Senator Gregg. I'm not going to get into personnel announcements before we are there. And as it relates to picking senators in states that need new senators, I think you can rest reasonably assured that this administration has had nothing and wants nothing to do with that going forward. (Laughter.) And I would bold and underline that.

Q What specifically is the President doing to ensure that the Finance Committee and members of the Senate are comfortable with the Tom Daschle position? Is he reaching out to them by phone? Is he involved in personally lobbying for his future?

MR. GIBBS: I don't believe he's made calls. I know staff probably has, and I think you've seen -- I think the most vocal advocate right now for Senator Daschle is Senator Daschle. And I think you've seen the letter that was released this morning that was sent to the committee last night, and I think you've seen the chair of the committee, who's very important in this process and very interested in health care reform moving forward in this session of Congress, come out in support of Senator Daschle.

Yes, sir. Did you just trade seats to get at a better --

Q I did. (Laughter.) How do you know the bill will save or create 3 to 4 million jobs?

MR. GIBBS: That's what the Council on Economic Advisors has told the President based on estimates of what's in the proposal that they came up with and forwarded to Congress, based on direct spending, putting people -- putting money in people's pockets, and making the long-term investments that I've talked about.

Q Can you ever measure that? I mean, are you ever --

MR. GIBBS: Sure.

Q -- are you ever retrospectively able to know that a job has been saved?

MR. GIBBS: Sure. There was a report -- Columbus, Ohio: "Columbus police recruits are laid off before being sworn in. Columbus Police Academy recruits were told they would be laid off Tuesday, three days before their scheduled graduation. City officials said the layoffs were due to budget reasons."

I think it's safe to assume that if the President's package, which addresses the need to ensure that public safety isn't threatened in a recession, and money specifically for police officers -- my sense is that Columbus, Ohio is probably going to get some of that money. And if one of the 27 would-be graduates that were laid off before they got their would-be diplomas, I think that would count as a saved job.

Again, the analysis that the CEA did was what would happen to the economy without a significant economic stimulus. A similar study in recognition of these facts were done by the Congressional Budget Office, which showed a far deeper recession without some recovery and reinvestment plan. You can see what the arc of those jobs numbers would be without a stimulus, and what our economic team believes that arc would be with a stimulus.

Q I guess I understand that example, but I'm wondering if just -- you're setting off something that -- you're talking about hundreds of thousands of jobs. Are you ever going to be able to measure that this bill succeeded in saving those jobs? I mean, who can tell exactly why some people are let go and exactly what the process -- it's so complicated.

MR. GIBBS: Well, I mean, I don't doubt that it's complicated. But again, people far better at math and carrying numbers are working on what happens without a stimulus and what happens with a stimulus. And I think there are very real-world examples of what happens when states and cities have budget pressures related to a significant downturn in the economy, and how that affects their ability -- whether its police officers or teachers -- I think the difference between laying those off and keeping them on the job is the definition of a saved job.

I think that's one of the reasons why Governor Douglas was here, and Governor Douglas has a different perspective on a stimulus and a recovery plan than some people on Capitol Hill. He doesn't have the luxury of running up a $1.2 trillion debt every year, and going home. He is accountable for public safety and health care in a way unlike many people are. I think that's why he walked in here today and was happy to support the President's plan to ensure that we have a recovery plan that saves or creates 3 to 4 million jobs.

Q Can you look in the bill and see if any of our jobs are saved and can you just help us out? (Laughter.)

MR. GIBBS: No, I'm --

Q I'm wondering whether we should come back tomorrow.

MR. GIBBS: I have some very bad news. (Laughter.)

Q Nothing could save our jobs. (Laughter.)

Q Robert, I wonder if the President thinks that all jobs are created equal, and by that I mean -- (laughter) -- you talked a lot about public sector jobs -- police officers, teachers -- if, at the end of the day, a lot of public sector jobs are created on the public payroll, as opposed to private sector jobs, is that okay?

MR. GIBBS: First of all, I believe that if -- the latest statistics based on the economic reports show that 90 percent of these jobs are private-sector jobs. No doubt there are public sector jobs, whether it's police officers or teachers, that are important to our long-term economic growth, that actions that we take or don't take will have a negative impact on whether or not those jobs continue. But obviously, and you saw last week with the CEOs that met with the President, that -- or small business owners -- those are the jobs that are going to fuel an economic recovery, not public sector jobs.

And that's why the President believes, as the CEOs said, as small business owners across this country have said, we need to get a series of things in place -- not just a recovery plan. Again, I think many business owners would and have talked to the President about a stability package that ensures that lending and credit are available to meet payrolls and to expand those businesses. The President visited the wind turbine business in Ohio, I think as an example. Certainly the new energy jobs of the future are just one fairly poignant example of jobs that would be created throughout the public -- I'm sorry, throughout the private sector in order to ensure immediate as well as sustained job growth.

Yes, sir.

Q Thank you, Robert. One of the things when you talk about that 7/100s of a percent in the package -- that figure is right, isn't it?

MR. GIBBS: If my math is right, yes. Shaky at best, but I did it twice on my computer calculator.

Q Okay. Would that mean that some of the more controversial items as far as Republicans, such as the $50 million for the National Endowment for the Arts, would be on the table then for discussion?

MR. GIBBS: Well, I think -- you know, I don't want to prejudge what is or isn't on the table for the President to discuss with either leaders of the Democrat Party, as he will later today, or also with leaders of the Republican Party in any dealings that he may have with them. My point on this is just that we can focus on a very narrow definition of what this proposal does to help the economy, or we can focus on the vast majority of what this legislation and proposal does to get the economy moving again.

Q The other thing was that in his first interview as Republican National Chairman, Mr. Michael Steele said that one should also consider in a stimulus package suspending or abolishing outright the capital gains tax for two years to free up the private sector. Is that something that's ever been discussed in any of the meetings on the stimulus package?

MR. GIBBS: Not that I know of. I think you've seen -- I think we know where business investment is right now, and I think you know where the capital gains tax rate is now as it -- relating to where it was several years ago. And I would I guess posit that the economy isn't altogether markedly more healthy.

Margaret. Go ahead, choose amongst yourselves.

Q The Republican Senate Leader, Mitch McConnell, said earlier today talking about President Obama and the stimulus plan, I think I know where he wants it to go. He said, it appears the Democratic leadership has not gotten the memo -- or the message if you will. I hope he is going to be able to put the Democratic leaders of the House and the Senate in line.

And I guess I was just wondering, walking up to today's meeting, is he planning on putting them in line when they get together?

MR. GIBBS: It depends on if he gets the memo.

Q Does Mitch McConnell have it right, or not exactly?

MR. GIBBS: No, I think -- again I would, as I've said here, I think what Senator McConnell should do is look at the whole bill. I think what Senator McConnell and others should do is talk to their constituents about what's needed to get the economy moving again. Many of them will tell you it's a blend of spending that will create jobs immediately, spending that will ensure investments for long-term economic growth, as well as some mix of tax cuts to put money back in the pockets of middle-class families and small business owners, and that a correct blend of that will get the economy moving again.

And I think that's exactly the proposal that the President and his team put together, and exactly the proposal that we've seen pass the House of Representatives thus far. And we're encouraged -- this week it will be debated on in the Senate, and we'll move forward from there.

Q So just quickly, you don't think that Mitch McConnell and the Republican leadership team is closer to what the President would like to see than the Democrats obviously are?

MR. GIBBS: Well, if I read most of the comments -- I mean, Senator McConnell believed that -- if I've read the AP story correctly, he didn't think the piece of legislation would pass the Senate. I think the President believes it will not only pass the Senate, but the Senate proposal is a good plan. I think his members want infrastructure spending, and this bill contains $123 billion in infrastructure spending. His members want tax cuts, and the bill contains more than a third of the money involved is in tax cuts. I think that the proposal that we have is a strong one, and it will create the jobs necessary to get Americans back to work.

April.

Q Two questions. One, there's a group of Democrats that desperately wants to meet with the President, members of the Congressional Black Caucus. Are they on the President's agenda? They want to talk to him about the stimulus package, issues of education, issues of unemployment benefit extensions, Pell grants, things that are in the stimulus package.

MR. GIBBS: I don't have the full list in front of me, the President's schedule. I am sure he'll meet with -- throughout the rest of this week and this month -- Democrats and Republicans on any number of those issues, including how to get more unemployment benefits out to the states, how to create jobs, and all the things that you speak about.

Q And also one more question.

MR. GIBBS: Oh, I'm sorry.

Q Michael Steele, you guys didn't come out with a statement on Michael Steele. Why? What is -- has the President reached out to Michael Steele? He has made several comments about the President, to include: "How do you like me now?" He is the other African American now heading a major party in this country.

MR. GIBBS: I would direct him to somebody over at the DNC.

Michael.

Q You said that the President was pleased with the House bill as it was passed. It's a very different bill, though, than what the transition talked about in early January. Back then you were talking about $300 billion in tax cuts, 40 percent of the stimulus. According to CBO score on Friday, it was a $182 billion that passed, 22 percent of the stimulus. What does it say about Obama's influence with Congress if they end up passing something very different than what he asked for in January, and is the President still happy?

MR. GIBBS: I don't think what ultimately passed was markedly different than what the President proposed. The figures I saw today are different than what you mentioned in CBO. That's not surprising -- we've kind of a had a little bit of a running debate with some of the figures that have been birthed by the CBO.

But, again, the basis for the legislation that we have now, the basis for the proposal that the President and his economic team developed fundamentally contain what's necessary through spending and tax cuts -- what's necessary to get the economy moving to create long-term economic growth; to do so in a way that's accountable and transparent to the American taxpayers; that invests in infrastructure and creates jobs and things like the new energy economy; and cuts taxes.

I think all of those were the basis for the President's proposal. He likes what he's seen thus far in the House proposal. Again, the test is, what can we do to get the economy moving and get people back to work. And I think he believes that the House bill passes that test.

Q But that -- is the White House still thinking about that 40 percent figure? I mean, is that still something that you guys would like to --

MR. GIBBS: I would point you to Congress and the people that might be able to tell you what the legislative process is -- what is going to happen this week, again, as I said earlier, the proposal in the Senate has already been added to significantly with an increase in tax cuts and making it different than what's in the House. And we'll see -- hopefully sometime next week after this bill passes the Senate and we can begin to reconcile the House and the Senate proposal -- what the final outlines of a deal will be.

But I believe, and the President strongly believes, that the outlines of that deal will largely mirror the proposal that he sent up that creates jobs. And I think that members of Congress in both parties, if they take a clear-eyed look at this proposal, will understand that that test is met in this proposal and that it will help put America back to work.

Thanks, guys.

END 2:35 P.M. EST

THE WHITE HOUSE

Office of the Press Secretary

For Immediate Release January 30, 2009

EXECUTIVE ORDER

- - - - - - -

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered that:

Section 1. Executive Order 13258 of February 26, 2002, and Executive Order 13422 of January 18, 2007, concerning regulatory planning and review, which amended Executive Order 12866 of September 30, 1993, are revoked.

Sec. 2. The Director of the Office of Management and Budget and the heads of executive departments and agencies shall promptly rescind any orders, rules, regulations, guidelines, or policies implementing or enforcing Executive Order 13258 or Executive Order 13422, to the extent consistent with law.

Sec. 3. This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

BARACK OBAMA

THE WHITE HOUSE,
January 30, 2009.

For Immediate Release January 30, 2009

MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES

SUBJECT: White House Task Force on Middle-Class Working Families

For many years, middle class Americans have been working harder, yet not enjoying their fair share of the fruits of a growing economy. While the productivity of the American workforce grew during the decade ending in 2007, middle income workers saw their real incomes fall. The current economic situation has exacerbated the challenges facing middle class Americans, with health care coverage, safe and steady employment opportunities, effective and affordable education, owning a home, and saving for retirement slipping out of reach. It is a high priority of my Administration to achieve a secure future for middle class working families, one in which they share in prosperous times and are cushioned during hard times. To these ends, I hereby direct the following:

Section 1. White House Task Force on Middle-Class Working Families. There is established within the Office of the Vice President, a White House Task Force on Middle Class Working Families (Task Force) to focus on raising the living standards of middle-class working families in the United States of America. The Vice President shall serve as Chair of the Task Force.

(a) Membership of the Task Force. In addition to the Vice President, the Task Force shall consist exclusively of the heads of the executive branch departments, agencies, and offices listed below:

(1) the Department of Commerce;

(2) the Department of Labor;

(3) the Department of Health and Human Services;

(4) the Department of Education;

(5) the Office of Management and Budget;

(6) the National Economic Council;

(7) the Domestic Policy Council;

(8) the Council of Economic Advisers; and

(9) such other executive branch departments, agencies, or offices as the President may designate.

A member of the Task Force may designate, to perform the Task Force functions of the member, any person who is a part of the member's department, agency, or office, and who is a full time officer or employee of the Federal Government. At the direction of the Chair, the Task Force may establish subgroups consisting exclusively of Task Force members or their designees under this section, as appropriate.

(b) Administration of the Task Force. The Department of Labor shall provide funding and administrative support for the Task Force to the extent permitted by law and within existing appropriations. The Vice President shall designate an Executive Director of the Task Force, who shall coordinate the work of the Task Force.

Sec. 2. Mission and Functions of the Task Force. The Task Force shall work with a wide array of executive departments and agencies that have responsibility for key issues facing middle class working families, expedite administrative reforms, propose Executive Orders, and develop legislative and policy proposals that can be of special importance to middle class working families. The functions of the Task Force are advisory only and shall include, but shall not be limited to, producing a detailed set of recommendations to:

(a) expand education and lifelong training opportunities;

(b) improve work and family balance;

(d) protect the incomes of middle-class working families; and

(e) protect retirement security.

Sec. 3. Outreach. Consistent with the objectives set out in section 2 of this memorandum, the Task Force, in accordance with applicable law, in addition to regular meetings, shall conduct outreach with representatives of labor, business, nonprofit organizations, State and local government agencies, and other interested persons that will assist with the Task Force’s development of a detailed set of recommendations.

Sec. 4. Transparency and Reports. The Task Force shall facilitate the posting on the Internet of submissions by outside parties and engage in an open, two-way dialogue with the American people. The Task Force shall present to the President annual reports, beginning 1 year from the date of this memorandum, on its findings and recommendations, which shall be made available to the public and posted on the Internet.

Sec. 5. General Provisions. (a) The heads of executive departments and agencies shall assist and provide information to the Task Force, consistent with applicable law, as may be necessary to carry out the functions of the Task Force. Each executive department and agency shall bear its own expense for participating in the Task Force.

(b) Nothing in this memorandum shall be construed to impair or otherwise affect:

(i) authority granted by law to an executive department, agency, or the head thereof; or

(ii) functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(c) This memorandum shall be implemented consistent with applicable law and subject to the availability of appropriations.

(d) This memorandum is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

Sec. 6. Publication. The Secretary of Labor is authorized and directed to publish this memorandum in the Federal Register.

BARACK OBAMA