WASHINGTON, Oct 14 (Reuters) – President Barack Obama on Wednesday proposed another $13 billion in spending next year — or $250 per person — to help some 57 million senior citizens, disabled people and military veterans weather the economic recession.
The funds would extend the one-year $250 “Economic Recovery Payments” program approved this year as part of the $787 billion economic stimulus package, but administration officials said it should not be viewed as the start of a second stimulus plan.
“Even as we seek to bring about recovery, we must act on behalf of those hardest hit by this recession,” Obama said in a statement urging Congress to approve the plan.
“These payments will provide aid to more than 50 million people in the coming year, relief that will not only make a difference for them, but for our economy as a whole,” he said.
An administration official said the president would not insist that the $13 billion program be paid for by offsetting cuts in federal spending. The official said in the context of a recession, such spending is often not offset.
“We’re going to have a conversation with Congress about the details, but one of the things the president will insist on in that conversation is that whatever way it’s structured, Social Security solvency would not be adversely affected,” the official said, referring to the government retirement program.
Congress would need to draft legislation enacting the measure and approve it.
Obama’s call for Congress to expand the program of $250 payments for another year comes as people receiving Social Security benefits face the prospect of no cost of living increase next year.
NEGATIVE INFLATION
Consumer Price Index figures used to compute the cost of living adjustments are due on Thursday and are expected to show negative inflation over the past year, administration officials said, speaking on condition of anonymity.
In such cases, they said, Social Security benefits remain at the same level as the previous year.
A spokesman for the Senior Citizens League, a nonpartisan seniors advocacy group, said the one-time payment does not come close to what seniors will lose without an actual cost of living adjustment in their Social Security checks next year.
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Obama asks Congress to back new payments to elderly
