Republican Gregg: Orszag, Obama Administration Could Be Skirting Law Through TARP Fund Use

By Laurel Brishel Prichard University of New Mexico/ Talk Radio News Service

Office of Management and Budget Director Peter Orszag defended President Barack Obama’s proposed budget for fiscal year 2011 during a Senate Budget Committee hearing Tuesday morning.

Many of the members on the committee experessed their concern over using repaid Troubled Assets Relief Program (TARP) funds as a “piggy bank” to fund the small business tax credit program that Obama has proposed.

“That's not what this money is for. This money is to reduce the debt of our children that we are passing onto our children, and you ought to at least have the integrity to be forth right about it and say that’s what your doing,” said Sen. Judd Gregg (R-N.H.)

Gregg’s attack on Orszag, that included accusations of not following or knowing the law, lead to Senator Bernie Sanders (I-Vt.) breaching common norms of the committee hearing by speaking out before being recognized.

“Congress can amend the law tomorrow. What [Orszag] is indicating is he’s going to Congress to amend the law,” said Sanders.

Sen. Ben Nelson (D-Neb.) did commend Orszag for "trying to get [his] hands around this budget deficit and the problems facing the country.”

Sebelius Touts $911 Billion For HHS In 2011 Budget

By Monique Cala - University of New Mexico/Talk Radio News Service

U.S. Department for Health and Human Services (HHS) Secretary Kathleen Sebelius announced Monday that President Barack Obama's proposed 2011 budget includes $911 billion for HHS.

“Whether fighting a pandemic, protecting food safety, or transforming the health care system with electronic medical records, the investments we’ve made have been guided by some of the finest scientific and medical experts in the world,” said Sebelius.

HHS has announced further investment in ‘next generation health care technologies,’ which includes a move to electronic health records by hospitals and doctors to help reduce medical errors, coordinate care and cut costs.

“What we have today is a sick care system, where we wait until something goes wrong to intervene,” said Sebelius.

According to the Secretary, HHS will work on prevention tactics by tackling obesity, which costs the U.S. health care system $150 billion a year, as well as fraud prevention with projected savings of $9.9 billion over ten years.

For more details on HHS's FY2011 budget visit FY2011 Budget.

Obama Tells G8 Leaders That Health Care Reform Will Lower U.S. Deficit

By Sam Wechsler - Talk Radio News Service

Health care reform will drive down the federal deficit, President Obama said at a news conference Friday at the G8 summit in L’Aquila, Italy. Obama also discussed Iran, saying he hopes to soon welcome the politically-embroiled nation into the international community.

Obama said he understands Republicans’ concern for the U.S.'s massive budget deficit, but said “what cannot be denied is that the only way to get a handle on our medium and long term budget deficits is to corral and contain health care costs.” Obama said that while it is not absolutely necessary, he wants to pass a health care reform bill by the August congressional recess.

“My biggest job is to explain to the American people why this is so important and give them confidence that we can do better than we’re doing right now,” said Obama.

As for the nuclear weapons program in Iran, President Obama stated that he would evaluate that at the G20 meeting in September.

“The international community has said ‘here’s a door you [Iran] can walk through that allows you to lessen tensions and more fully join the international community.’ If Iran chooses not to walk through that door you have on record, the G8 to begin with, but I think potentially a lot of other countries that say we need to take further steps,” said Obama.

Blueprints Drawn Up for 2010 International Affairs Budget

By Courtney Ann Jackson-Talk Radio News Service

Secretary of State Hillary Clinton said the proposed international affairs budget is a “major investment” as she testified before the Senate Foreign Relations Committee Wednesday. Clinton said in her opening statement that President Obama’s 2010 budget request for the State Department and the United States Agency for International Development is $48.6 billion.

Clinton explained that she knew what a significant request and said, “We know that this request comes when some agencies are experiencing cutbacks. But it is an indication of the critical role the State Department must play to help advance our nation’s interests, safeguard our security, and make us a positive force for progress worldwide.”

Clinton offered a description of how the State Department and the USAID should exercise their global leadership effectively. The description included the “three D’s” that she said must be harnessed. The “three D’s” are diplomacy development and defense according to Clinton.

There are many issues that the State Department and the USAID are currently dealing with and Clinton said, “We need good people and we need enough of them.” According to Clinton’s opening statement, that is why the 2010 budget request includes $283 million to accommodate the hiring of over 740 new Foreign Service personnel. This increase in the budget coincides with the President’s promise of expanding the Foreign Service.

Clinton said the State Department and the USAID will have the opportunity to use “smart power to implement smart policies.” The top three priorities of focus are: urgent challenges and regions of concern,including Afghanistan and Pakistan, Iraq, and the Middle East; transnational challenges; and development assistance.

Clinton closed her opening statement by saying to Committee Chairman John Kerry, “Mr. Chairman, we’re pursuing all of these policies because it is the right thing to do, but also because it is the smart thing to do. No country benefits more than the United States when there is greater security, democracy, and opportunity in the world.”

Hoyer: Curtailing America’s Debt Is Not A Choice

By Jonathan Bronstein, Talk Radio News Service

House Majority Leader Steny Hoyer (D-Md.)

When financial giants Bear Stearns and AIG crashed, the American government came to their rescue to maintain stability of the economy. When “too big to fail” Freddie Mac and Fannie Mae did fail, the American government stepped in and prevented their demise.

However, “If a fiscal meltdown comes, there will be no one to bail out
America,” said House Majority Leader Steny Hoyer (D-Md.), adding that the U.S.’s lack of a responsible fiscal policy for the last 30 years has placed the nation in dire economic straits.

Hoyer spoke yesterday at the Bipartisan Policy Committee.

America’s 2009 budget is contending with a $1.7 trillion deficit, which will only inflate the national debt to $11 trillion. More than $3 trillion of that debt is held by foreign lenders, specifically China.

“Our debt has never been higher...(This) is our sad, debt-ridden fiscal state,” said Hoyer. As a result “hundreds of billions of dollars every year - hundreds of billions that could strengthen our national defense, or help young Americans go to college, or fund research for the next energy breakthrough - will instead go to interest payments, merely to keep us solvent.”

Hoyer stressed that Congress must take the lead and reform the nation’s economic policy in order to prevent such a devastating, demoralizing and dangerous event from ever occurring.

The first, and most important way to reshape America’s fiscal future is to reform the entitlement programs, such as Social Security Medicare and Medicaid.

“We will not bring our debt down if we do not reform entitlements,” Hoyer said, but cautioned that it will not be possible without bipartisan support. He cited Social Security reform in 1986, which was only possible because of a compromise between the Democratic Speaker of the House, Tip O’Neil, and President Ronald Reagan.