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House to Vote on Stimulus Package; More Icy Weather; Further Earnings Reports, Not All Bad
Aired January 28, 2009 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: He's pitched and now they swing. House members to vote on the president's stimulus plan this hour. We'll answer your e-mail questions on what's in the package for you.
Plus, icy roads, dicey travel. Even where a winter storm has passed, the danger remains.
It's Wednesday, January 28th. Hi, everybody, I'm Heidi Collins. You are in the CNN NEWSROOM.
Just in now. I want to get straight out to you. A mix of profits and losses. Defense contractor General Dynamics shows earnings up nearly 6 percent for the fourth quarter of last year. Now that's $612 million. On the other hand, financial companies, Wells Fargo, took a hit after buying Wachovia. For the final three months of the year, the bank reports a loss of $2.6 billion.
Countdown on Capitol Hill now, President Obama's stimulus package now just hours away from a House vote. The goal of the $825 billion plan is to shore up the sinking economy, of course. The president calls the crisis urgent.
Republicans say the rescue plan, though, is bloated. And there was little common ground that the president did reach out to GOP lawmakers.
CNN's senior congressional correspondent Dana Bash begins our coverage.
(BEGIN VIDEOTAPE)
DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT (voice over): Barack Obama spent 2 hours and 37 minutes at the Capitol, entirely with Republicans.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I don't expect 100 percent agreement from my Republican colleagues, but I do hope that we can all put politics aside and do the American people's business right now.
BASH: The new president's walk across the aisle in the House and the Senate, a carefully choreographed move to show he's making good on a promise for bipartisanship. But several GOP lawmakers said that behind closed doors, the spirited discussion and critical questions did not lead to much common ground for his nearly trillion dollar economic stimulus plan. REP. MIKE PENCE (R), INDIANA: The bill that House Democrats will bring to the floor tomorrow will literally be a catchall of traditional pet programs and more government. The only thing it will stimulate is more government and more debt, and the president heard that message today.
BASH: Mr. Obama got an earful from several GOP lawmakers complaining they've been shut out by his fellow congressional Democrats. Several told him his tax cuts were not deep enough and misdirected. One Republican lawmaker complaining his plan gives tax cuts to Americans who don't pay income tax.
On that, Mr. Obama would not budge. One GOP source saying he responded, "Feel free to whack me over the head because I probably will not compromise."
OBAMA: There are some legitimate philosophical differences with parts of my plan that the Republicans have, and I respect that.
BASH: The reality is, Mr. Obama didn't have much of a shot at changing GOP minds. Before he arrived, CNN is told that House GOP leaders urged their rank and file to vote against his stimulus plan. Even moderate Republicans tell us they're wary.
UNIDENTIFIED MALE: Not intending to be a rubber stamp for any particular president, regardless of whether they're Republican or Democrat.
BASH (on camera): Several GOP lawmakers in the House and the Senate tell us behind closed doors, Mr. Obama did not make any immediate concessions to assuage GOP concerns about too much spending and not enough tax cuts.
But we're also told the president reminded Republicans, this is just the beginning of the process, and he did say he would go back and talk to his aides about some of the Republican gripes, especially the fact that they don't believe there are enough tax cuts for small businesses.
Dana Bash, CNN, Capitol Hill.
(END VIDEOTAPE)
COLLINS: And speaking of those tax cuts, we do have CNN correspondents covering all of the angles. Christine Romans looks at the tax breaks in the rescue plan. The big question, will you get some of your money back. And Suzanne Malveaux has a view from the White House.
Let's go ahead and begin with Suzanne.
Suzanne, you have a lot to talk about this morning. In fact, you have new details as well about the new direction in dealing with Afghanistan.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, that's right. President Obama's going to go to the Pentagon later today. He's going to meet with Secretary of Defense Gates and the Joint Chiefs and I've spoken to a senior administration official, this meeting is going to be about Afghanistan and Iraq.
And, essentially, the administration officials saying look, they're going to expect a lot more from Afghan leader, Hamid Karzai, in fighting corruption. They say Afghanistan, not Iraq, is the central front on the war on terror, so they want him to be able to govern outside of Kabul, the nation's capital, to be able to provide services to Afghans outside of the capital city, so they're talking about, not only a robust military effort.
We heard Secretary Gates talking about perhaps as many as 12,000 additional troops or three combat brigades. But also nonmilitary resources going to Afghanistan to make sure that people have jobs outside of this huge drug business.
But, Heidi, they are saying they're going to expect a lot more from Hamid Karzai in exchange for that robust effort. Nonmilitary and military effort going after al Qaeda, but also certainly making sure that the Afghan leader understands this is not business as usual. They want him to crack down on corruption in his own government and to provide services for the Afghan people -- Heidi?
COLLINS: Yes, a lot more to talk about with that. Really interesting information today regarding that.
Also, we've got to get back to the economy, because clearly moving forward today this is what the administration's going to be talking about for quite some time.
What exactly do we think that the president will be doing now to sell his stimulus package? Obviously, there has been a lot of talk with GOP lawmakers.
MALVEAUX: Well, some things you're going to see in front of the cameras and others behind closed doors. Today he's going to be meeting with his economic advisors, his team, to sit down once again to try to figure out a way, A, what the economy looks like, the state of the economy, the crisis.
And, B, how to deal with this. And he's going to be meeting with some business leaders here at the White House as well, obviously, to -- sell this package, $825 billion.
There are still some meetings that are taking place behind the scenes, Heidi, a little bit of charm and arm-twisting combination, if you will, to try to see if there are other concessions that they can offer Republicans.
We've seen just over the last 24, 48 hours, some programs that have been eliminated, some provisions taken out of this bill. They're looking for other possible ways, other programs, that they might be able to eliminate as well -- Heidi.
COLLINS: All right, very good, CNN's Suzanne Malveaux at the White House for us this morning. We know you'll be covering that. Thank you, Suzanne.
The Obama stimulus plan, tax breaks, turf wars and deepening battle lines between the Republicans and the Democrats.
Is this really about economics or is it politics? CNN's Christine Romans is taking a closer look at what exactly is in this plan regarding the tax breaks and, of course, some of that debate.
Good morning, Christine.
CHRISTINE ROMANS, CNN CORRESPONDENT: Good morning, Heidi. You're right. There have been some distractions here, haven't there? Squabbling over whether we should spend stimulus money to make-over the National Mall, to pay for contraceptives, to pay for jobs in the arts.
Let's forget about the (INAUDIBLE), let's look at what's in this monster. Remember, the bill is supposed to be big. It's supposed to spend lots of money. That's the whole point.
President Obama said all of these billions are going to renovate 10,000 schools, build some 3,000 miles of new electric grid, weatherize 2.5 million homes to say nothing of bridge repairs, health care...
COLLINS: Right.
ROMANS: ... and more aid for college students. There's also $275 billion in tax cuts. So let's take a look. Among those tax breaks here that we're looking at, a lot of different things. But there's a child tax credit there. 16 million children will be affected. 95 percent of Americans are going to get $500 to $1,000 tax break.
The full credit on that, folks, will be limited to people making $75,000 or less for the $500 a year -- for the $500 a year break. $150,000 for filing joint returns to get the full benefit.
There's also some direct aid to states. There's food stamps to feed the needy. That's going to help some, I think, gosh, 30 million Americans there.
COLLINS: Right.
ROMANS: Disabled and elderly benefits, $450 in Social Security benefits, but it's the tax-cut stuff that really is fulfilling a promise that the president made on the campaign trail. The Republicans and conservatives, some Republicans and conservatives, zeroing in on the fact that some people will get tax credits, who do not pay income tax, but they do pay Social Security and Medicare tax.
And the president, as you heard -- Dana Bash report, he's not -- he's non-negotiable on that one. That's going to happen. It's a promise he made on the campaign trail. He's going to follow through with that one. So there's a lot of tax relief in here. The Republicans would like to see more small business tax relief. It's one of the reasons why they were screaming about resodding the mall or whatever that big distraction was because they said that there was more money to do that than for the small business tax relief they'd like to see.
But, indeed, there's -- this is, this is a little bit of everything. There's -- 35 percent is tax cuts. 65 percent is direct assistance, investments, new spending and the like. There's an awful lot in here. We're going to have a long time to really be digging through every little program, Heidi.
COLLINS: Yes, and some of those seem to be, you know, valid questions. If I'm a guy who's an entrepreneur, I have my own company, I brought myself up from nothing and then I see the National Mall being returfed and revamped, I'm wondering, you know, what's in it for me and the others like me so...
ROMANS: Well, that's -- and that's gone. Let's be clear.
COLLINS: Yes.
ROMANS: That provision is gone. But there were people yesterday who were telling me, look, it takes people to resod the mall. Isn't this whole thing about putting people to work?
COLLINS: True.
ROMANS: Just getting people to work.
COLLINS: Yes.
ROMANS: It takes people to resod the mall.
COLLINS: All right. Well, we are looking at all the angles as usual.
ROMANS: Sure.
COLLINS: CNN's Christine Romans. Thanks, Christine.
The proposed stimulus plan, yes, a lot to digest, to say the least. So is there anything you don't get? Later in the hour, America's money answers man will be joining us live to answer some of your questions about this. I'm sure there's a lot out there.
You can go ahead and e-mail us at CNNNewsroom.com.
Republicans say the president's stimulus package has too much wasteful spending. So where is the pork? Our Josh Levs is on the case. We'll have his findings after the half hour.
The Obama administration, day nine. Next hour, the president is due to meet with business leaders. The topic, of course, the economy. That will also be the focus of his comments during the following hour.
And then at 3:30 Eastern, as we mentioned here, the president turns to the Iraq war and his promised withdrawal of U.S. troops. Expected to be at the Pentagon meeting, Defense Secretary Robert Gates and the president's senior uniformed military advisers.
And just a reminder, we'll have live coverage of President Obama's remarks on the economy scheduled for 11:15 Eastern, 8:15 Pacific.
One of the other major stories that we are following this morning. You're looking at it now, the aftereffects of a winter mess. No doubt about it, it is dicey driving. From Texas to Delaware and the northeast is in for it today.
The storm already blamed now for at least 19 deaths. Power is out to hundreds of thousands of homes, and many could be in the dark for days. Driving treacherous at best. Hundreds of schools and government offices are closed.
Want to take a moment to get straight over to Rob Marciano in the weather center now with more on all of this.
We talked about yesterday how big this ice storm is going to be and now we're really seeing the effects of 19 deaths so far.
ROB MARCIANO, CNN METEOROLOGIST: Yes, and then hundreds of thousands of people without power. The problem with the power outages is one, without the power, it's cold. And two, with ice storms it just takes longer for them to get the power back online. Typically, the crews won't go out until a big chunk of that ice has been melted and then they have to get through the tree limbs and the trees, big trees, in some cases, that are just down because of the weight of that -- of that -- of the ice.
(WEATHER REPORT)
COLLINS: Yes, absolutely. All right, hopefully we'll warm up just a tad.
Sure do appreciate it, Rob. Thanks. We'll check back later on.
Meanwhile, the president and the Pentagon. President Obama leaving the White House again today, going down the street this time to meet with his top military minds.
(COMMERCIAL BREAK)
COLLINS: News before the opening bell now, will Wall Street embark on a third straight day of gains? Right now futures are pointing to a strong start. And yesterday the Dow Jones Industrial Average closed up 58 points. Promising signs from the overseas markets, too. Overnight trading mostly higher. South Korea saw a 6 percent gain, Japan's Nikkei closed up 0.6 percent. And early trading, markets in Paris, London and Frankfurt have rallied more than 1 percent.
The $750 billion bailout. Your money, their mystery. How was the money spent? A new Treasury boss is demanding answers.
(COMMERCIAL BREAK)
COLLINS: The $750 billion bailout, do you know where your money is? There are few answers on how half that staggering sum has already been spent. But the new Treasury chief says he will demand answers.
CNN's Tom Foreman has the details.
(BEGIN VIDEOTAPE)
TOM FOREMAN, CNN ANCHOR (voice over): Citigroup, recipient of $45 billion bailout dollars, now says it will not accept delivery of a new corporate jet. That after the Obama administration called it unacceptable, with taxpayers propping up Citi's finances. And Treasury secretary, Tim Geithner, is raising the heat on other firms, too.
TIMOTHY GEITHNER, TREASURY SECRETARY: Treasury has to be, and Treasury will be, a source of bold initiative.
FOREMAN: Geithner has unveiled new restrictions for releasing the second half of the $700 billion bailout program called TARP. Among them, safeguards to prevent lobbyists influencing the program. No steering of the payments to particular companies by political bosses, and more transparency about where all that money is going and why.
It all comes in the wake of sharp criticism that the previous Treasury secretary let too much money out with too few restrictions.
NEIL WEINBERG, FORBES MAGAZINE: And if we do not have standards of accountability here, we don't have any idea whether that's happening or not. And our money could just as well be wasted as being going to a good, useful purpose.
FOREMAN (on camera): If Washington lacks the political will to tighten the reins a few months ago, a new survey by the Associated Press may increase public pressure on Congress and the administration to get tough now.
(Voice over): The AP found in 9 out of 10 banks receiving bailout money, the same executives are in charge who were running the show in 2006 when the troubles began, even though more than 100,000 of their employees have lost their jobs since then.
PATRICIA MURPHY, CITIZENJANE POLITICS: I think there is the political will and really the political requirement to put strings on any TARP money that goes out the door, again, because the American people are sick of it. They are sick of not knowing where all this money went.
FOREMAN: Maybe the Obama team's new plans will help, but keeping them honest, it will be tough.
The AP also found when many banks received their first payout, the first thing they did was increase their lobbying efforts for more.
Tom Foreman, CNN, Washington.
(END VIDEOTAPE)
COLLINS: An $825 billion plan to fix an ailing economy, will it work? We'll talk about it next.
(COMMERCIAL BREAK) (BEGIN VIDEO CLIP)
ROBERT GATES, DEFENSE SECRETARY: I believe our goals in Afghanistan have to be more near term and more modest. I would define success in Afghanistan as a situation in Afghanistan where it is no longer a source of terrorist threat or extremist threat to the United States or her friends or allies.
Much has to be done to create that kind of end state, but I believe that we should be very cautious in having very long-term, very idealistic aspirations in Afghanistan, and rather focus on what we think we actually can accomplish within the next three to five years.
(END VIDEO CLIP)
COLLINS: Defense secretary, Robert Gates, laying out the administration's stance on Afghanistan, speaking to the House Armed Services Committee about the need to send more troops. It was the second round of testimony on the Hill yesterday.
Gates told Congress the U.S. plans to send another 15,000 troops to Afghanistan, including support staff, by late summer. President Barack Obama and Gates were both on the Hill yesterday, though for different reason. Today, they're getting together at the Pentagon.
CNN Pentagon correspondent, Barbara Starr, joining us live now with more on that.
So this is a little bit unusual to have the president go over to Pentagon, correct?
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, not entirely, Heidi, because you'll remember that President Bush came over many times to meet with the Joint Chiefs of Staff. It really sends an important signal to both the military and to leaders around the world that the president is willing to take the time, to get in the car, drive over here and come to the Pentagon to meet with the Joint Chiefs.
That, again, is what is going to happen today. The topics clearly will be Iraq, Afghanistan and the troops that are needed to be sent to the wars there. Afghanistan topping the list. They're really trying to actually double the size of the force in Afghanistan, put about an additional total 30,000 troops into that country.
But, even with -- even with all of the rhetoric from the new White House, it's going to be very tough going. The reality is, they have to find the troops to send. And they really have to get a handle on security there.
Just yesterday Admiral Mike Mullen, chairman of the Joint Chiefs, said the situation in Afghanistan is getting more perilous every day. The Taliban now running parts of the country -- Heidi?
COLLINS: Yes, and interesting, too, in talking a little bit more about this new strategy that we've been talking about already this morning. Suzanne Malveaux telling us a little bit more about what the president is saying and Defense Secretary Gates is saying about what the responsibilities will be for Hamid Karzai in all of this and NATO and the allies as well.
STARR: Well, one doesn't want to be a downer, but, again, a little bit of a reality check here. Hamid Karzai, I have to tell you, inside the country, is referred to as the mayor of Kabul, because his power base really is the capital. He does not fundamentally govern in the rest of the country. That is a serious problem. He has been tied to allegations of corruption.
The Obama administration wants to fix all of that, but the problem for them remains the same -- if you push Karzai too far, he could lose power. He could lose control of the portions of the government he has, and who would come to power? Perhaps warlords who are much less amenable to the United States.
Item number two, getting NATO to contribute more money, more troops, more reconstruction assistance. Also very problematic, the Obama administration is making an all-out effort for that. But I have to tell you that Secretary Gates did the very same thing in the Bush administration, and had very little luck -- Heidi?
COLLINS: All right, we'll continue to follow that one, of course. Important meeting today at 3:30.
Thanks so much, Barbara Starr, our Pentagon correspondent.
STARR: Sure.
ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.
COLLINS: All right, just about 9:30 now, Eastern Time. And, of course, you know what that means. We're getting ready for the opening bell for a Wednesday. Could possibly be the third straight day for positive results by the end of the trading day? That's what everybody always wants to see, of course.
So we will continue to watch those numbers. Just yesterday, the Dow Jones Industrial Averages closed up about 58 points or so, so we will see exactly what will happen today. Obviously, as we've already reported here today, as we hear the opening bell, some of those numbers have prepared us for a mixed open, if you will.
But good numbers coming from overseas. So, again, we'll watch that and, of course, see if the stimulus plan and everything that we've been talking about in Washington will have any effect on what happens on the market as well.
Stephanie Elam, actually standing by now, New York Stock Exchange, to give us a little bit more on that. Boy, we've had all kinds of activity by way of numbers, haven't we? We're talking stimulus. We're talking jobs loss. We're talking earnings reports. It's been a big week already and we're only three days into it.
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: I know. We're keeping busy here, Heidi, that's for sure. We are looking for a sharply higher open after the Dow's nearly 60-point gain on Tuesday. Financial stocks are expected to lead the event. There are reports this morning that the Obama administration may be ready to announce a deal to buy those much-talked-about bad assets from banks. Also the Federal Reserve wraps up its two-day meeting with an announcement at 2:15 Eastern Time this afternoon.
Really, though, a lot of suspense about this one, though, because the key benchmark lending rate is essentially at zero right now. But analysts expect the Fed will take additional steps to help the economy and ease the credit crisis.
Of course, corporate earnings reports also remain in the spotlight. Wells Fargo actually posted a more than $2.5 billion loss, mostly tied to its acquisition of Wachovia. But when you eliminate the charges, the results actually beat expectations. And Wells Fargo said it has no plans to ask for additional government aid.
Boeing had a tough quarter as well. Reporting a $56 million quarterly logs, due to a strike by its workers. That kind of claims deliveries, along with charges related to delays of its new 747 jumbo jet.
Meanwhile, taking a look at AT&T, it saw its fourth-quarter earnings fall nearly 24 percent, that narrowly missed Wall Street expectations. Rising costs offset AT&T's strong performance in its wireless business. And not a surprise here. A few more job cuts to tell you about as well. Target is laying off 600 employees and getting rid of 400 unfilled positions at its Minnesota headquarters. And Best Buy is letting an unspecified number go, after only 500 corporate workers accepted voluntary buyout packages.
So with all of that in mind, let's take a look at how the numbers are right now. And look at that, right off the gates, we got triple digits gain. The Dow up 101 points, 8274 there. The Nasdaq better by almost up two percent. Same story for the S&P 500. So, Heidi, as things stand right now, we're off to a good start.
COLLINS: OK. Hey, let's call it a day, what do you think?
ELAM: Yes. I'm done. Let's go.
COLLINS: All right. Stephanie, appreciate that. We'll check in a little later on.
ELAM: Sure.
COLLINS: President Obama's first big test. The House is set to vote today on his $825 billion economic stimulus package. The president was on Capitol Hill yesterday, urging Republicans to support his plan. But some GOP members have criticized the bill for what they considered too much spending and inadequate tax cuts.
President Obama says he doesn't expect 100 percent of the Republican support, but he is urging lawmakers to put politics aside in a bid to rescue the nation's ailing economy.
But, will the Obama stimulus plan revive the economy and put Americans to work? That is the question. CNN's senior correspondent Allan Chernoff live now from New York to help understand this a little bit better.
It's such a big question, but clearly we keep on hearing, Allan, you know, this is unchartered territory. So how do we really know?
ALLAN CHERNOFF, CNN SENIOR BUSINESS CORRESPONDENT: Well, Heidi, we do know unfortunately that there is no quick fix. I wish there was. The fact is the government cannot guarantee that it will pull us out of recession. What the government can do is spend so that it delivers the biggest bang for the buck.
(BEGIN VIDEOTAPE)
CHERNOFF (voice-over): Construction company owner Sanjeev Dhawan is hopeful President Obama's stimulus program will get through Congress quickly, so he can win new government contracts and rehire workers he's had to lay off.
SANJEEV DHAWAN, OWNER, UNICORN CONSTRUCTION: Hopefully what we're going to do is we'll make a few phone calls and get some of those people back to work, some of these talented folks that we had working for us before. Unfortunately right now, they're sitting home.
CHERNOFF: New projects Dhawan says would also have him buying concrete steel and other material and equipment.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We'll put people to work repairing crumbling roads, bridges and schools by eliminating the backlog of well-planned, worthy and needed infrastructure projects.
CHERNOFF: President Obama also hopes to improve our electricity infrastructure, computerize more medical records and upgrade hospitals. Each will take months to begin putting the money to work. And most of the funding wouldn't be spent until next year and the year after, estimates the Congressional Budget Office.
Even so, some economists say Obama's plan makes sense. And with many private businesses scared to spend, they say big spending to help the economy has to come from the government. But government can do only so much if the nation's banks refuse to start lending again.
NIGEL GAULT, CHIEF U.S. ECONOMIST, IHS GLOBAL INSIGHT: If we get the stimulus package and it comes and goes but the financial system remains broken and the banks are still not lending, then any help that we get from the stimulus will prove short-lived.
(END VIDEOTAPE)
CHERNOFF: Government spending will help, but the Obama administration has to find a way to get banks to start lending again. Banks have been holding on to their money with a tight grip, and President Obama needs to find a way to get them to loosen up and actually lend that money. Because after all, credit grosses the wheels of capitalism, and without that grease, well, those wheels can screech to a halt.
Heidi?
COLLINS: Yes, absolutely. And, Allan, it becomes such a sort of scientific question obviously as to how deep you make those tax cuts in order to do that.
CHERNOFF: Right. Well, we've got the spending on the one hand, and the spending is going to take a long time to have a real impact. But it could have a lasting impact on the economy. Tax cuts, that can be more immediate. The question is, well, how exactly do you split it up? Tax cuts will get money into the pockets of Americans. And there's been some controversy about people with very low incomes who don't even pay income tax...
COLLINS: Right.
CHERNOFF: ...actually getting rebates. But from an economic stimulus perspective, that actually can be very helpful. Those are the people who really need money, they'll get it, they'll spend it. And you want Americans to spend, whatever they're going to be getting right now.
COLLINS: Yes, you do. Hopefully it won't be the same situation with the stimulus checks that went out, though, so we'll have to wait and see, obviously. Allan Chernoff --
CHERNOFF: That gave a little bit of a boost to the economy, but obviously it didn't last.
COLLINS: Yes. All right, Allan, sure do appreciate that. Thank you. You know, one of the hurdles for the stimulus bill is whether it contains pork. There's a debate, of course, over just what counts, though, as Pork in this economy.
Our Josh Levs joining us now with some of the big points of contention. Because, yes, it almost becomes, or at least some people might argue that it's suggestive. You know, we think this is pork and you don't.
JOSH LEVS, CNN CORRESPONDENT: No, a colleague of mine once said "One man's pork is another man's red meat." And that's kind of what we get to right here. Yes -- and, no, it's a great line. Thanks, Doug. But let me tell you -- first of all, the bill itself, have you seen this? I mean, this is the bill behind me. I just want you to see this number here, 647 pages long.
COLLINS: I have seen it. I've accidentally printed it out.
LEVS: Accidentally, oh, man, tree killer. Well, it is not available, book on tape. So it takes a long time to piece through. This is what I want to go do. I just pulled out some of the big examples that some lawmakers are talking about here.
Let's start of with this one. $50 million -- this is a good example -- for the national endowment to fund arts projects and activities which preserve jobs in the nonprofit art sector. Here's another one -- $44 million for the department agriculture buildings for necessary construction repair and improvement activities. I'll show you one more, $650 million for helping ensure a timely conversion of analog to digital television, and that money could include education, consumer support and outreach programs. Those are just a few of the many examples people are pointing to here. So it's not that lawmakers are saying, Heidi, that these programs will never be worthy, they say they might not belong in this stimulus package to try to get the economy going now.
COLLINS: Yes, at least first off.
LEVS: Right.
COLLINS: And lawmakers have removed some provisions that were in the bill.
LEVS: Yes, they did. In fact, one -- you mention earlier this hour, Christine Romans, check this out, the National Mall Revitalization Bill, that was the bill included $200 million to spruce up the Mall there, where we saw so many people just last week. The House Rules Committee pulled out last night.
And one more thing I want to show you on the screen here, they pulled this to, it's called section 5004. (INAUDIBLE) expect you to read all that text, but that's the one that we heard a lot that included free contraception for low-income families. So, yes -- I mean, the back- and-forth has already led to some serious changes.
COLLINS: Yes, $200 million for that one. The bill does, though, Josh, avoid some of the kinds of pork that we've seen in the past.
LEVS: Absolutely. And we should point that out. I'm glad you said that. I have a graphic here with the quote from that. Take a look at it, it specifically says that none of the funds may be used for any casino or other gambling establishment, aquarium, zoo, golf course or swimming pool.
And of course that is the kind of thing we have seen at times in the past. Heidi, I also pulled this up on the screen. I remember working on this for cnn.com last month. This headline, "Obama, days of pork as a strategy are over."
Now what this president has been saying is that local pet projects will not get the green light just because they're there. It's a matter, he says, what will stimulate the economy and ultimately create jobs.
COLLINS: Yes. The question also, though, are these projects good ways to spur job creation? Or are they just wasteful spending? I mean, how do you ever get full agreement on that?
LEVS: Yes, exactly without being able to predict the future and know a lot of things. That is the debate. And that's why we're asking you, folks,0 this morning. Take a look at this e-mail question we have for you.
COLLINS: What a great idea. LEVS: See, check that out.
What did you think counts as pork? You can give specific examples if you want, or just say in general terms. In a situation like this, at this time when there's so much of an effort to get this economy going, what is wasteful spending and what is legit? You can weigh in there -- cnnnewsroom@cnn.com. And, Heidi, I'll be back next hour with some of those responses.
COLLINS: All right. Very good. Josh, appreciate that. Thank you.
LEVS: Thanks, Heidi.
COLLINS: There is certainly a lot to grasp as the president and lawmakers work on a financial rescue plan. Our own Lou Dobbs will go through these recovery proposals, line by line, item by item, all 647 -- no I'm kidding --pages, working to separate the pork from the truly helpful. Lou's "LINE-ITEM VETO," don't miss it, tonight, 7:00 p.m. Eastern.
The propose stimulus plan, yes, a lot to digest, so is there anything you don't get? Well, later in the hour, America's money answers man will join us live to answer some of your questions. So, go ahead, start e-mailing us at cnnnewsroom@cnn.com.
(COMMERCIAL BREAK)
COLLINS: Snow, ice, rain, a winter storm making life just miserable from Texas to the Ohio Valley. In Denton, Texas, dangerous driving -- ice glazed roadways sent cars spinning out of control. In fact five people died in traffic accidents in Texas alone.
In Post Falls, Idaho, icy roads smashed cars. One accident after another. All forcing part of I-90 to close for about 90 minutes yesterday.
And in Southern Ohio, snow and freezing rain forced schools to close there. But it looks like the kids, you know, usually, they don't mind too much when they don't have to go to school. I remember that feeling well.
But, boy, this is nothing to joke about, Rob.
ROB MARCIANO, AMS METEOROLOGIST: No. And just got a report that Miami University closed because of ice.
COLLINS: Wow.
MARCIANO: In Ohio.
COLLINS: Miami University in Ohio, yes. Sounds good, though. Tried to get me, didn't you.
MARCIANO: It's impossible, you know, that.
COLLINS: Oh, yes. (WEATHER REPORT)
COLLINS: Yes, exactly, that's the problem. Keep those chains out.
All right, Rob, appreciate it. We'll check back a little later on with you.
Meanwhile, a blizzard of allegations could soon spell the end for Illinois Governor Rod Blagojevich. Today marks the third day of his impeachment trial. The seemingly inevitable ouster may be just days away now after state senators got to hear what the FBI heard. CNN's Susan Roesgen has more.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Hello?
SUSAN ROESGEN, CNN GENERAL ASSIGNMENT CORRESPONDENT (voice-over): At last, state lawmakers got to hear at least a little bit of some of the FBI's secret recordings of Illinois Governor Rod Blagojevich.
In this call, someone the FBI calls "lobbyist one" speaks first.
(BEGIN AUDIO CLIP)
UNIDENTIFIED MALE: Lon's going to talk to you about some sensitivities legislatively tonight when he sees you, with regard to timing of all of this.
GOV. ROD BLAGOJEVICH (D), ILLINOIS: Right. Before the end of the year, though, right?
UNIDENTIFIED MALE: Oh, yes. Yes. Yes. So, there was no waffling there. It's just that, you know, we've got to -- we've just got to figure it out. And so he'll give you the specific details.
(END AUDIO CLIP)
ROESGEN: The impeachment prosecutor told state senators the conversation involves a horse racing bill that the governor allegedly refused to sign until he could get cold, hard cash.
(BEGIN AUDIO CLIP)
UNIDENTIFIED MALE: What are the chances, based on that conversation with you yesterday, that this gets done next week?
BLAGOJEVICH: You know, they're good. And I feel like -- I feel like there's somebody else who's holding him back.
UNIDENTIFIED MALE: No --
BLAGOJEVICH: I believe it's Chris.
UNIDENTIFIED MALE: No, no.
BLAGOJEVICH: Well, what's taking -- you know, a whole year, you know what I mean?
Hey, Lon --
UNIDENTIFIED MALE: No, I don't think he's been talking to Chris.
(END AUDIO CLIP)
ROESGEN: There were only four short snippets taken from hours of the government's wiretaps, but that may be enough to persuade the Illinois Senate to kick the governor out of office.
Much more will be heard in the criminal case that could send the governor to prison.
(on camera): Of course, what many people want to hear is an excerpt from the tape where the governor allegedly talks about selling Barack Obama's Senate seat. Now, whether that is actually on the tape or not, whether that was actually his intention or not in that conversation, we won't know for several months, because that tape and many, many more excerpts will not be played until the criminal case, which will not be for several months.
Susan Roesgen, CNN, Springfield, Illinois.
(END VIDEOTAPE)
COLLINS: Get your e-mails in, everybody. We're taking your questions today on the president's stimulus plan. Anything you want to ask -- cnnnewroom@cnn.com.
(COMMERCIAL BREAK)
COLLINS: Want to give you a look now, a live picture of Capitol Hill. Boy, you can barely see it in there, huh? A lot of blizzarding so to speak, probably not the correct meteorological term, but it also surrounds the blizzarding of the president's stimulus package of course because it has its first vote today.
A lot of people really wanting to know what is in the package for them. So we have been taking your e-mails on the stimulus all morning long and we have a whole lot to get to. So here to help us to answer those questions this hour, author, Jordan Goodman, "America's Money Answers Man."
Much better than being the shell answer man, huh?
JORDAN GOODMAN, "AMERICA'S MONEY ANSWERS MAN": That's right. I agree with you, Heidi.
COLLINS: Jordan, nice to see you, too. Listen, let's get to this first question here.
GOODMAN: Sure.
COLLINS: Danielle in Philadelphia wants to know is there anything written in the legislation to hold spenders accountable, unlike the last stimulus package. Take a moment here and explain to us the difference between this chunk of money we're talking about now and the last stimulus package first.
GOODMAN: OK. The stimulus package last spring was actually handing out checks. Remember, everybody got $600 and the family got $1200, and that was pretty much it, and it helped for about a month or so and that was pretty gone. That was about $168 billion.
COLLINS: And hard to hold a spender accountable with something like that.
GOODMAN: Yes. It's interesting, actually, because a lot of the money, actually, was not spent.
COLLINS: Right.
GOODMAN: People used it to save or pay off credit card debt which is a perfectly logical thing to do. So literally, Heidi, when you hand people cash these days, they're so afraid that they don't spend it.
COLLINS: Yes.
GOODMAN: That was the last stimulus program.
COLLINS: Right.
GOODMAN: That's different than the TARP -- the Troubled Assets Relief Program, which is what happened in the fall. That was the $700 billion deal to offer money to the financial institutions in theory to lend. The first $350 billion lasted from October to basically mid- December, right before our President Obama came in, that was then renewed. The next $350 billion that supposedly there is going to be more transparency and they're going to list on the Web site where all these money goes.
But, in fact, a lot of this money just gone to the banks and they have put it in their bolts. In fact, they bought Treasury bills. So they're kind of putting money back right to the Treasury government.
COLLINS: Exactly. And again, I keep going back to this position that President Obama created, this chief performance officer. That would be something that she would be in charge of doing, yes?
GOODMAN: It's quite a job. This is a 679-page bill. And you're talking about $825 billion or so to keep track of all this and have it be very transparent is going to be something -- let's put it this way, the government has never done it.
COLLINS: Yes, exactly.
All right, the next one now. Coming to us from Sox (ph). How is this going to quickly impact the housing market? You just mentioned, you know, credit freeze. Specifically, how is it going to help me sell my house?
GOODMAN: Well, the selling of the house is a problem, because of such a huge inventory. Something like nine months' worth of inventory on the market. Now, in theory, there is part of this bill that is going to help prevent foreclosures, and that will be helpful in some areas, because there just been huge amounts of foreclosures out there, and that's putting pressure on all the housing markets there.
There is some specific resource that can help you in your particular area. For example, you can do what's called a loan modification. There's a Web site called modifymyloan.com, for example, that will help you if you have that problem, if you're heading towards delinquency or foreclosure, you can get that loan modified. The banks have plenty of real estate right now, Heidi.
(CROSSTALK)
GOODMAN: But don't count on the government to, you know, buy your house from you or really change the housing market in any major way.
COLLINS: Yes. Definitely not. Hey, quickly, from Brenda. Will the stimulus tax cut affect the 2008 tax return?
GOODMAN: Not really. I mean, we're talking about things going forward. But it's not affecting last year's return at all.
COLLINS: Right.
GOODMAN: So, no. It's not going to be. If we are talking about a stimulus program that's going to give checks to people, even who have not paid taxes in the past, by lowering the social security amount that's taken out of their paychecks, but it will not affect 2008.
COLLINS: Sure. OK, quickly, Brian from Seattle says -- wants to know, my employer has closed down and I have recently lost my job. We are unable to continue to pay the monthly lease on our vehicle, nor can we pay the remaining balance. Is the stimulus going to help people in this position?
GOODMAN: Not really. I mean, hopefully, they're going to get jobs for people. And if they've got jobs, that maybe allow them to pay. But really somebody like this what they should do is go to a good national nonprofit credit counseling place that can help them. A place that I think is good is called Cambridge Credit Counseling. Their Web site, cambridgecredit.org. And what they'll do is consolidate all your debt into one payment and a lower interest rate that you couldn't get on your own to help you get out of debt.
COLLINS: OK.
GOODMAN: But don't expect the government to kind of pay your car lease for you. Nice idea, but that's not going to be happening. I mean, they're talking about giving maybe $500 or $1,000 as a cover rebate check to people. But, again, it's not kind of changing the underlying situation for somebody like this who has really lost their job.
COLLINS: Yes, absolutely. All right. Well, Jordan , we sure do appreciate it. Jordan Goodman, he is "America's Money Answers Man," which I can't say. But Jordan, great job. We'll have you back.
GOODMAN: Thanks very much, Heidi. Thank you.
COLLINS: And I just want to let everybody know, if we didn't get to your e-mail question, just wait, because there is still time to get to your question in CNN NEWSROOM at cnn.com. We'll be talking next hour to (INAUDIBLE). You know him. He is the economics expert in the bow tie.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
JIMMY CARTERS, FORMER PRESIDENT OF THE UNITED STATES OF AMERICA: I think it's best for all of us to condemn any violence on either side, and what we need it just two things right now. One is to open up the gates going into Gaza so people can have food and water and medicine and fuel. And on the other hand, stop all of the firing of missiles, and also all of the firing of dropping of bombs and so forth, ending violence.
(END VIDEO CLIP)
COLLINS: Former President Jimmy Carter on "LARRY LING LIVE" last night, giving his views on what needs to happen, to ease the tension between Israel and Palestine militants from Gaza. Carter praised President Obama for appointing George Mitchell as the special envoy to the Middle East.
Mitchell has had his work cut out for him. He is now in Israel, which a short time ago fired missiles at tunnels along Gaza's southern border. Israel said it was in response to yesterday's killing of an Israeli soldier near a border crossing. Our Ben Wedeman has been monitoring all of the moves.
BEN WEDEMAN, CNN SENIOR JERUSALEM CORRESPONDENT: Heidi, the Obama administration is wasting no time getting to work on the thorny question of Middle East diplomacy. The new U.S. Envoy to the Middle East, Senator George Mitchell, already in the region. He has met with Egyptian president Hosni Mubarak.
The Israel meeting with Israeli leaders, after that with Palestinian leaders. The priority for this trip at the moment is, of course, shoring up the Gaza cease-fire, which was battered on Tuesday when Palestinian militants used the roadside bomb to attack an Israeli jeep, killing one Israeli soldier, wounding three. Israel responded with a variety of air strikes, including several on the freshly ug network of tunnels between Gaza and Egypt. Notably absent from Senator George Mitchell's itinerary is any meeting with the Hamas movement, which the United States continues to boycott.
Heidi?
COLLINS: All right, Ben, thanks for the update.
Facing his first test now. President Obama stimulus package up for a vote in the House.
