Obama Eyes Economic Triage; Don't Call It Stimulus 2

Published December 24, 2015

The Obama White House has begun talks with congressional Democratic leaders on moves to extend health insurance subsidies, the $8,000 first-time home buyer tax credit and jobless benefits, congressional and administration officials told Fox late Friday.

These moves were recently pulled together by White House economic advisers as an act of economic triage aimed at millions of chronically unemployed Americans. The White House is loathe to call this emerging package a second economic stimulus.

Even so, President Obama tipped his hand that something was coming in Friday remarks on the economy in the Rose Garden.

"I'm working closely with my economic advisers to explore any and all additional options and measures that we might take to promote job creation," Obama said after the Labor Department reported that 263,000 Americans lost jobs in September and the unemployment rate rose to 9.8 percent.

Embedded in those numbers was this sobering statistic. The number of Americans unemployed for 27 weeks increased by 450,000 and now totals 5.4 million.

The White House may soon ask Congress to extend three parts of the original $787 billion stimulus law signed in mid-February.

* Extend the current $8,000 first-time home buyer tax credit beyond its scheduled Nov. 30 expiration date.

* Extend the current 65 percent subsidy through the COBRA program so jobless Americans can purchase health insurance for only 35 percent of the premium. After that, the government reimburses the provider for the remaining unpaid amount through a tax credt. The program, which provides nine months of this subsidized insurance coverage, is also due to expire on Dec. 31.

* Extend the full 79-week unemployment insurance package now available through the stimulus to laid of workers. The stimulus provided extnded jobless benefits in high-unemployment states and tacked on a $25-per week stipend. Eligibility for extended benefitsand the stipend expires on Dec. 31.

Congressional Democrats said talks on moving this type of legislation are "preliminary." But they are gaining velocity as the White House tries to cope with persistent unemployment and the political anxiety it has begun to generate among Democrats preparing to run for re-election in 2010.

Two White House officials adamatly denied a second stimulus is coming. But a senior administration official confirmed moves are afoot to extend three stimulus-created programs targeted at softening the blow of unemployment and boosting home sales.

"There's no big new package under consideration," the official said. "But there are moves to extend things that are starting to run out."

URL

https://www.foxnews.com/politics/obama-eyes-economic-triage-dont-call-it-stimulus-2