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January Jobless Claims Skyrocket To 626,000; White House Press Briefing Centers On Stimulus Bill Debate; Will Obama Set A Spending Cap?
Aired February 05, 2009 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
PHILLIPS: Senators are scrambling to pare down, beef up or somehow get their arms around the American Recovery & Reinvestment Act. That's the economic stimulus plan that's swelled to more than $900 billion and more than 600 pages. But who's counting.
SEN. BARBARA BOXER, (D) CALIFORNIA: I find it really rather amazing that the senator is holding up a bill, holding up a bill, theatrical. Did you ever do that when George Bush was president, and he sent down a bill twice as big as that? Did he ever do that? Because you can do that. That's theatrics. You could do that.
SEN. LINDSEY GRAHAM, (R) SOUTH CAROLINA: I will put my ability to speak my mind to my party up against anybody, including you, Senator. I have been on this floor many times arguing with the past administration about policies I disagreed with. I don't recall you doing that a lot, but I don't question your motives as to why you're doing what you're doing.
BOXER: Let me go -
GRAHAM: I'm here today -- no, it's my time. I'm here today to point out the fact that this is not bipartisanship. This process that is -- we're engaging in is not smart. We're not working together. We're about to spend $800 or $900 billion and nobody's got a clue where we're going to land, and we've got to do it by tonight. So, I am telling you right now, if this is the solution to George Bush's problems, the country is going to get worse. If this is the new way of doing business, if this is the change we all can believe in, America's best days are behind her.
(END VIDEO CLIP)
PHILLIPS: In private, a bipartisan group of moderates is trying to cut 10s of billions of supposedly excess spending. You may see a vote as soon as tonight.
As for the 100s of billions the government borrowed in your name to bail out the banks? I hope you are sitting down now. The Senate Banking Committee heard today from overseers of the so-called Troubled Asset Relief Program. They say the plan is short on conditions, transparency, and accountability. Not only that, but you and I apparently overpaid for the stock that we received for our investments. On the upside, the banks are paying dividends.
For many Americans, the stimulus can't come fast enough because the job cuts are piling up. Today, Este Lauder, Talbot's and Time Warner Cable, CNN's corporate cousin, by the way, announced layoffs. And that is forcing many people to turn to the government for help. Susan Lisovicz at the New York Stock Exchange with details on those jobless claims.
Hey, Susan.
SUSAN LISOVICZ, CNN FINANCIAL CORRESPONDENT: Hi, Kyra.
Well, new jobless claims skyrocketed last week, 626,000 people lined up for new unemployment benefits. A year ago, new claims, just to put this in perspective, were in the 300,000 range. The surge reflecting the huge numbers of layoffs we saw last week. Companies like Microsoft, Pfizer, Caterpillar, and others announcing nearly 140,000 job cuts.
Meanwhile, a record number of people, nearly 5 million, have been getting unemployment benefits for an extended amount of time. That indicates it's taking Americans a lot longer to find new jobs, Kyra.
PHILLIPS: Well, is there any sign of turn-around?
LISOVICZ: You know, there's a lot of debate on this. You know, I talked to a lot of economists this morning. One of them says that he actually sees signs that the decline that we're seeing, with all the data, including jobless claims, is lessening a bit. Another one says it shows the recession is intensifying. The hope is that this stimulus that we'll get, in one form or another, will do its work.
Yet another economist told me that if you give someone enough steroids, they're eventually going to get bigger. But we all know steroids have their own consequences. That's the big concern here on Wall Street, what form of stimulus.
In the meantime, there's no question it's an urgent situation. We get the government's January job report tomorrow. We are expecting it to show employers cutting a half a million jobs, and we're expecting the unemployment rate to rise to 7.5 percent.
Stocks initially hit by that weekly jobs report, but now we're seeing some very nice gains. Visa and MasterCard benefiting from better-than- expected earnings. The Dow is up 105 points. The Nasdaq is up 2 percent. We've got two hours to go in the session. Maybe we'll get some more data that will encourage the bulls to take the market higher, Kyra. Right now it looks pretty good, though.
PHILLIPS: All right. Susan, thanks so much.
LISOVICZ: You're welcome.
PHILLIPS: Well, the president plans to harness the power of faith. Mr. Obama lays out his plans for faith-based initiatives and he says his ideas won't contradict the Constitution.
(COMMERCIAL BREAK) PHILLIPS: As you know, every day we've been taking the White House briefing, as we are entering into the first 100 days of the Obama presidency. Ed Henry there, who has the sweet spot in the front row, joining us live now, pre-news conference.
What can we expect to talk about, Ed, today?
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Obviously it's all about the stimulus, Kyra. Good afternoon.
The president hoping that this is sort of reaching the final stages, at least in the United States Senate. You've been reporting all day about what's going on with those bipartisan negotiations. Moderate Democrats and Republicans in the Senate seem to be closing in on some sort of an agreement that would shave 10s of billions of dollars off the stimulus plan. That's obviously been a key concern of a lot of centrist Democrats and Republicans. Several of them were here at the White House yesterday for one-on-one meetings with the president in the Oval Office.
We were told after those meetings, by various officials, that the president in private was expressing confidence that by the end of this week, he could get this package through the Senate. But as you know, that's just yet, you know, one of many layers in this process. After that, even if it didn't get through the Senate, it would have to go into a conference committee between the House and Senate. The bill that is emerging from the Senate is much different than what the House passed several days back. So this could take several more days of negotiations.
But the president, in private, is at least expressing confidence that this is still on track to be signed into law by Presidents Day. That's the deadline that he set. You heard him today at the Energy Department, again, saying it's urgent. He keeps doing that day after day, trying to say, as he did yesterday, that a crisis can become a catastrophe if this stimulus package is not passed, Kyra.
PHILLIPS: All right. We'll wait for Robert Gibbs to step out there, and move up to the mic. Ed, you let us know when we get the two-minute warning.
HENRY: We will.
PHILLIPS: Fantastic. We'll take it live. Thanks so much, Ed.
HENRY: Thanks, Kyra.
PHILLIPS: Meanwhile, what would you ask the president in keeping with his pledge to have the most open and accessible administration in American history? Mr. Obama welcomes your comments at the White House website, whitehouse.gov, but you can also e-mail us, mailtothechief@cnn.com. We'll pass you questions onto the White House and read some of them on the air, and hopefully get some answers as well.
President Obama today waded into the always thorny issue of church and state. He announced plans to overhaul the White House office on faith- based initiatives created by President Bush. Mr. Obama plans to expand the office and it's mission and he insists it can be done within constitutional limits.
(BEGIN VIDEO CLIP)
BARACK OBAMA, (D) PRESIDENT OF THE UNITED STATES: The goal of this office will not be to favor one religious group over another, or even religious groups over secular groups. It will simply be to work on behalf of those organizations that want to work on behalf of our communities.
And to do so without blurring the line that our founders wisely drew between church and state. This work is important, because whether it's a secular group advising families facing foreclosure, or faith-based groups providing job training to those who need work, few are closer to what's happening on our streets and in our neighborhoods than these organizations. People trust them. Communities rely on them. And we will help them.
(END VIDEO CLIP)
PHILLIPS: All right. So let's get specific. What are the goals of the president's new faith-based and neighborhood partnerships? The White House names several. For starters, getting faith and neighborhood groups involved in economic recovery efforts; also serving as one voice in the administration to support women and families, including work on the issues of abortion and teen pregnancy. Addressing the crisis of fatherhood, and what the White House calls disconnected young men.
We'll take you straight to the White House briefing now; Robert Gibbs up at the mic.
(BEGIN LIVE FEED, IN PROGRESS)
ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: You want to associate yourself with those comments, too, Chuck?
QUESTION: (OFF MIC)
Well, let me -- before we start, the reason I was slightly delayed, I went to talk to the president about the news that Justice Ginsburg has had surgery for pancreatic cancer. He has not talked with the justice, but his thoughts and prayers are with her, and her family right now. And we hope for and wish her a speedy recovery right now.
With that, Miss Lovett (ph)?
QUESTION: Two things, Robert. Senator Collins said that President Obama told her she was interested to seeing the bill come down to $800 billion? Is that true, in the key meeting with a group of moderates today to try to hash some of this out?
GIBBS: I don't -- I have not seen the latter part of the schedule today, and I don't know. I'll check on the $800 billion. I was not in the meeting.
QUESTION: (OFF MIC)
I think he -- as we've said, wants to package that, will do what it needs to do to meet the scope and size of these challenges. Obviously the package that we had some principles that laid out a broad range earlier in the process, the House passed a package, I think in the low eights. The Senate obviously has, I think, added $100 billion to that number, through some amendments.
And I think the president was clear today at the Department of Energy that we need a package that meets the size and scope of those challenges. And again, you know, we are reminded again why getting something like this is so important. New jobless claims came out today that showed those claims are the highest point since October of 1982, with 626,000 new applications for jobless claims.
And I think we all expect that tomorrow's unemployment numbers are likely to show this country with the highest unemployment rate in 17 years. So the president continues to watch what happens on Capitol Hill, and I think we're making progress toward getting a package that he thinks the ballpark and the fundamentals, at least, that he thinks will move our economy forward and create jobs.
QUESTION: One other topic really quickly. (INAUDIBLE) released, the committee vote postponed?
GIBBS: Yes.
QUESTION: There are apparently some concerns that she might have a conflict of interest as Labor secretary? Can you talk about that?
GIBBS: I believe -- you know, in a question to the committee, that the committee asked on follow-up about her participation, I think on a board of some sort, that was omitted from her original questionnaire, that she has answered that question. And those questions are into the committee.
QUESTION: (OFF MIC)
GIBBS: I don't believe it is at all. I think the committee statement that I think you've seen from Senator Enzi and Senator Kennedy denote they will continue to work together to move this nomination forward as soon as possible.
QUESTION: Can we follow on that? Can we follow.
GIBBS: I'll get to you, don't worry.
QUESTION: Can I ask a question about the stimulus.
GIBBS: Yes.
QUESTION: There seems to be a change in tone from the president about stimulus. Definitely his tone today was more combative than the emphasis on bipartisanship that we saw last week. He talked about the worn out policies of the Republicans, suggesting that they're the obstacles here. I'm just wondering has he given up on bipartisanship? Does he mainly only want enough Republican votes -
GIBBS: Obviously, I think the way to get this thing done, the best way to do it is to do it with both parties. We have seen ideas debated and we've seen those ideas rejected by the Senate that would take out the full package and replace it with tax cuts, which I don't think are surprising, would disproportionately cut taxes for those who have done quite well this year, and over the past eight years.
I think what the president referred to is the notion that we tried those policies. All right? We tried those policies in 2001. I don't think anybody would look back at the last few years and think that our economy grew nearly as much as it could or should have. And I think we've tried many of those ideas. We've tried cutting taxes for those that are doing the very best as a way of watching it trickle down and help everybody else. I think the policy hasn't worked, and I think the idea certainly in November was rejected as a way of moving our economy forward.
I think what the president has done is lay out throughout this process a plan that he believes will save or create 3 million jobs. We do have tax cuts in our plans. The tax cuts are targeted toward middle-class Americans that are in need of some help. The plan also has what many economists believe is the best way to stimulate the economy, and that is, by spending money that will create jobs. I think that's the best way to do it.
QUESTION: Last week your emphasis from the podium, and the president's emphasis was he wanted to listen to Republican ideas. Now he's going out today and criticizing their ideas saying their approach isn't going to work. Does he mainly hope to only get enough Republican votes to squeak this by in the Senate, or does he want broad support?
GIBBS: Let's understand that just yesterday he had Republicans here at the White House talking to them. I think if he rejected bipartisanship, I think we could have freed up some time on his schedule yesterday. Obviously that's not the case. Obviously he's reaching out to -- and he's always said he will reach out to people that had good ideas, in a way that strengthens the package that we have as the process goes forward.
QUESTION: He's specifically is reaching out to Republican moderates at this point? The Republican moderates who may be --
GIBBS: He's reaching out to people that I think have demonstrated - I saw some of Senator Collins' remarks on one of the cable channels earlier today, and she said she had a good conversation with the president. And the president had in some ways convinced her that we needed a package that met the size and scope of our problems. I think that's bipartisanship.
I think a Democratic president talking to a Republican senator, and getting some agreement on strengthening the package and moving it along in a size that denotes the scope of the challenges that Americans face economically, challenges that we're reminded of each and every day. The president believes that's the best approach for moving this package forward. We're making good progress. I think the Senate's going to vote at some point soon. And move this process even further along.
Ed?
HENRY: The president's message to House Democrats be tonight, will he be telling them that they need to cut spending in conference committee, since the bill had a lot of spending --
GIBBS: First of all, let's deal with a couple of these issues, because as I said earlier, we've got a bill that was -- I don't remember the exact number, $815, $820, $825 - and we've now got it - there's a Senate bill that is now in excess of $900 billion. The two biggest amendments that have been put forward thus far, to increase the level of that spending, was an amendment -- two amendments by Republicans.
So let's first understand sort of where we are in terms of spending. The president will, much as he did with the leadership here earlier in the week, first thank them for all the work that they've done, whether it's the fair pay bill that they passed and got to his desk, whether it's an expansion of children's health insurance, that will cover children that currently lack health insurance, whether it's moving that stimulus package along. I think, first, to thank them for their work early in this session, and early in this year on an agenda that's important for America's working families.
I have no doubt that they'll talk about ways to strengthen the bill. And ways to move the process forward, hopefully the Senate will soon vote on this proposal. And we'll be in a situation where we'll be reconciling different pieces of legislation, and hopefully meeting the president's important timetable in getting that bill to his desk, getting his signature on that bill. But most importantly, moving the assistance that the American people deserve and expect, moving that assistance forward quickly.
HENRY: But earlier when the president talked about the policies that have been tried and failed, he cited he had been left with a $1 trillion budget deficit.
GIBBS: $1.2 trillion.
HENRY: $1.2 trillion, so even more. Thank you for that.
And so now he wants to why then, if that's been a failure, does he want to add $800 billion or $900 billion on top of that? Plus, the children's health insurance, you just mentioned, 10s of billions more. Is there any concern --
GIBBS: Let's understand - well hold on. Let me just -- Ed, I -- inherent in your question is understanding that the bill -- the children's health insurance bill was paid for, right?
HENRY: It is paid for, as we discussed yesterday with the cigarette tax. You're not sure whether or not that is going to -- GIBBS: No, no, Major was not sure. I was sure.
HENRY: Well, we don't know how many people are going to buy cigarettes.
(CROSS TALK)
GIBBS: I just want to -- I'm not holding it up to you. You're OK.
(LAUGHTER)
GIBBS: Right. You didn't realize we were shooting at each other around you.
No, I wanted to make sure the phrasing of the question was -- there's -- the president did inherit $1.2 trillion deficit. And I think you've heard him speak before of what is going to happen in our economy if we don't act. I said it earlier, I said it yesterday that our estimation is without a significant stimulus, more than 5 million jobs will be lost over the course of the next three years. Each of those years would represent roughly $1 trillion in lost output. What the economy would produce and what the economy could produce with significant stimulus.
You can imagine what would happen to our deficits if 5 million more people are applying for unemployment claims, the money that has to go along with that, the spending that would be involved in that. As well as what would happen to tax receipts if economic output was over the course of three years $3 trillion less than what that economy could produce.
Our failure to act is going to worsen the deficit. The president has spoken in the short term, we're going to have to stimulate our economy with a robust reinvestment and recovery plan. The president has also spoken about once that has gotten into place and has a chance to impact and affect our economy and put millions back to work, that the deficits that he inherited are unsustainable on the long term. And I think you'll see in a budget that he presents to Congress, either later this month or sometime next month, you'll see that the president is involved in serious decisions to begin to get that deficit under control. There's no doubt that $1.2 trillion each and every year is unsustainable.
HENRY: Hilda Solis? "USA Today" is reporting that her husband had tax liens in the neighborhood of $6,400, I believe? That has been holding up the nomination. Is the White House aware of that? Is that true? When did the White House find this out?
GIBBS: I read the story in "USA Today." and it quoted somebody who worked here. So obviously we've -- we know about the story. I'll say this. We reviewed her tax returns and her tax returns are in order.
The story denotes that her husband had some issues with paying a business tax. And obviously that tax should be paid. She's not a partner in that business. So we're not going to penalize her for her husband's business mistakes. Obviously her husband, I think, has and should pay any taxes that he owes.
Jake?
QUESTION: Two questions. One is a housekeeping one. In the name of the transparency that you and the president herald so much, is there way we could get the copies of the waivers that the OMB issues to allow certain Cabinet posts or deputy posts --
GIBBS: I'll check on it.
QUESTION: Get free of the ethics constraints you put up? And also, the disclosure forms that your nominees put out that go to the Office of Government Ethics, that somehow they're not able to e-mail or put on the web. Is there any way we can get copies of that?
GIBBS: I'll check. I don't know how those forms are distributed.
QUESTION: Just based on listening to the president's rhetoric, I'm sure it's something he would want to do.
GIBBS: Knowing of your crystal clarity on his opinion, I'll certainly check.
QUESTION: He doesn't believe in transparency?
GIBBS: Did you have another more pertinent question?
QUESTION: I think that's fairly pertinent here, Cabinet nominees and whether or not they pay their taxes and whether or not they have speaking fees, with all sorts of industries they are supposed to regulate, I think that's fairly pertinent. You don't?
GIBBS: Obviously I do. Obviously, the president --
QUESTION: The majority of the American people apparently support blocking or making major changes to the stimulus bill, according to a Gallup Poll. Are you worried at all that you lost control of the process on how this bill is received?
GIBBS: No. Chuck?
QUESTION: Robert, you said just now actually in answer to one of the questions that the president said if he hears good ideas from the Republicans, he's all for it? Has there been a good idea from the Republican that he is now trumpeting into this stimulus package?
GIBBS: I think the president talked with Senator Snowe and Senator Collins yesterday.
QUESTION: Was there a specific, like, OK --
GIBBS: I have not -
QUESTION: That's a good deal, let's do it.
GIBBS: I have not gotten from him that. I know that he believes that -- and stated over the course of the negotiations, that there are things that he didn't -- while good policy, didn't believe should be in the bill. And I think he is watching what is going on in the Senate in order to see where the process moves this along.
QUESTION: Do you regret not -- you guys not being more forthcoming about what you're for, and what you're against? I mean it does seem --
GIBBS: No.
QUESTION: that you are allowing Capitol Hill to say --
GIBBS: Well, I mean, Capitol Hill has a job, Chuck.
QUESTION: You're allowing Capitol Hill saying what you guys are for or against. You guys haven't been the ones to --
GIBBS: I don't think Capitol Hill speaks for what we're for and what we're against. You know, we traded gigs. We traded one for the other. But I don't -- he's not a senator, Chuck, he's not a member of the House. He's the president of the United States. I think people are pretty clear about the viewpoints that he has on what a stimulus plan has to have. There's going to be a back-and-forth on this stuff. And the president obviously is watching that in order to, at some point, get a bill that's on his desk quickly.
QUESTION: One housekeeping matter.
You've come out and talked about different world leaders that he calls. And when he did Russia, you said he called the president. Has he spoken to Putin? Does he not consider -- by making the phone call to the president of Russia, which of course, I'm trying to not pronounce the name, Medvedev, does that mean that's who he believes is the leader of Russia, not Putin?
GIBBS: Well, I think the president is Medvedev and the Prime Minister is Putin. I'm not aware that he's talked to the prime minister. But I know he has talked to President Medvedev.
QUESTION: But then reading into the fact that he made a call to the president?
GIBBS: The president is the president of the country. I think you should read into it that he spoke with the president.
Chip?
QUESTION: Thank you. Some of the moderate Republicans who are in these big meetings up there, have said that they've told the president that they absolutely could not support a bill that's as high as the House, 819. It's now about $100 billion above that. He absolutely must have their votes, at least a few of them to pass this thing. Has he agreed with them, that he will keep it under the $819?
GIBBS: Again, going back to Chuck's question, we haven't voted on the $70 billion amendment on the AMT, or the $16 or $18 billion amendment on the housing. The Republicans offered in each of those occasions. I'll see where the president is in terms of the level. I think we tend to get focused on this number, or that. The president wants -- obviously wants to move the process forward, but also wants to have a package that is -- meets the principles that he has in moving forward. Are we going to create jobs? Are we going to meet the size and scope of those problems with something that's appropriate enough to save or create the more than 3 million jobs that he's talked about? Is the tax relief going to be focused on those who need it the most in the middle class? Is the spending that's involved also laying down important investments for the future? I think all of those are principles that the president has.
QUESTION: Some of those moderate Republicans have also said that there was just a fundamental mistake made in the beginning by giving an outline to the Hill and letting them fill in all the details, and that what should have been done is you guys should have written a bill and sent it up there and said, make some changes, but this is basically it. Has there been any discussion back there?
GIBBS: I have a feeling it's a little bit like skeet shooting no matter who throws the skeet. You know, it's -- you're going to get -- whether the plan comes from us, and gets shot at or whether the outline comes from us -- I mean, it's, look --
QUESTION: Has there been any second-guessing back there?
GIBBS: No, not at all. You know, it's referred to as sausage-making, and probably for good reason. Helen?
HELEN THOMAS, HEARST NEWSPAPERS WHITE HOUSE COLUMNIST: Does the president believe in separation of church and state?
GIBBS: He does.
THOMAS: Then why does he keep this religious office open in the White House?
GIBBS: Well, the president signed an executive order today that establishes under his administration an Office of Faith and Neighborhood Partnerships. The president spoke throughout the campaign about what he believed was an important role that faith-based institutions play in providing things like Head Start, child care.
He made it clear in his remarks at the prayer breakfast and throughout the campaign, that all of these programs should adhere to constitutional principles, such as church and state. The order establishes specifically in the job description of the executive director the ability to look into -- specifically with the White House counsel and the Department of Justice any legal concerns that are out there regarding hiring practices.
THOMAS: (INAUDIBLE) across the board equivalent to a program which is nationwide and so forth, has no religious context?
GIBBS: I'm sorry, say that one more time?
THOMAS: Are they competive with government programs? GIBBS: Well, again, I think in some cases, you could go to -- you can go to a Head Start program that's run in the basement of a church. I think the president has long believed that the institutions of faith have a role in -- have a valuable role to play. But he also has -- you asked me about clearly (ph) beliefs in the constitutional principles. John?
QUESTION: A couple of questions. First, there's a lot of been talking about having to get Republican votes to get to 60 in the Senate. Does the president believe he needs 60 votes, or is there the prospect that Republicans will actually let this go to an up or down vote because they don't want to look like they're blocking this thing?
And secondly, there's been some -- the president talked yesterday with some senators about holding a press conference on Monday, and possibly an Oval Office address on this. I wonder if you can fill us in on those plans.
GIBBS: Let me take a crack at your 60 first. You'd have to ask somebody on the hill about the notion of what the number is and what the legislative procedure will be in order to move the process along. I think the president would tell Democrat or Republican, nobody wants to be seen as standing in the way of progress toward getting a package quickly to his desk and, more importantly, getting that package of assistance out to the American people.
I don't think anybody wants to be seen as obstructing that process. I do not know exactly where we are in the 24th for a joint address. But I do know that the president will have a news conference next Monday night at 8 p.m.
QUESTION: Any Oval Office address? There's some talk about that.
GIBBS: There's not one on the calendar right now. Mark.
MARK KNOLLER, CBS NEWS WHITE HOUSE CORRESPONDENT: Robert, I'd like to follow up on one of Karen's questions. Are you saying we're misreading the president's remarks today if we say the president sounded more combative and increasingly impatient with the speed at which the stimulus plan is going through Congress?
GIBBS: I wouldn't quibble with that. I mean, I think when he said the time to talk is over, I think it's fair to read impatience into that. At the same time as he says obviously the debate over something the size and scope of this is important to have. But I think, Mark, he would tell you that the numbers that he sees, and the briefings that he gets about the worsening economy demands action by Congress and the president.
And that a failure to act will result in millions more jobs lost, far greater economic output. I think the president did take on arguments today that -- about what type of approaches he and many other economists believe are best at stimulating this economy. That I think it is fair to say that economists believe and the president believes that simply doing more of what has gotten us to our current economic situation is not likely the recipe for getting us out. KNOLLER: And Robert, there's another story today that the administration is trying to come up with a phrase other than "war on terrorism" to describe the conduct against extremism in the world. Is that accurate?
GIBBS: I would refer you to the president's answer on -- boy, I think it was the CNN interview that -- where he addressed this. I'll circulate that for you. What the president, I believe, said was, he's used that phrase, but he'd also use different words and phrases in order to denote a reaching out to many moderate parts of the world that we believe can be important in a battle against extremists. I think you saw that in his initial interview with Al Arabiya before George Mitchell went on his trip overseas. Yes, ma'am?
QUESTION: After meting with senators Snow and Collins yesterday, what other moderate Republicans is the president reaching out to today, and does he plan to invite them here to the White House? And also --
GIBBS: I don't have the latter part of his schedule for today in front of me. So, I don't know if there are specific meetings on this today.
QUESTION: Who has he reached out to?
GIBBS: I don't know the answer to that today.
QUESTION: How is he deploying Judd Gregg to help shore up support?
GIBBS: I don't know the answer to that. I mean, again, I think he's reaching out to any number of people. I'll check and see if there are specific names that we have. Yes, sir?
QUESTION: Robert, on the stimulus, there are about 17 senators working right now, roughly divided Democrat, Republican, to in their words substantially change the composition of the stimulus bill. The majority leader just said a few moments ago they have another thing coming if they think they're going to succeed.
Who does the president believe is more productive in the process right now? This group of 17 or the majority leader who's essentially saying to them, don't go too far because we're going to pass the bill the president wants?
GIBBS: Another good example of why we're not in the Senate and not involved in some of the individual debates.
QUESTION: (INAUDIBLE) therefore encouraging of the 17.
GIBBS: Let me -- well, look, I think the president would encourage any good ideas, working with members and the leadership to get something moved forward. Obviously you've got to get -- there's a calculus of the number that have to move a project or bill forward.
The president looks forward to that process continuing and thinks that it's important to get a vote in the Senate soon and get this thing moving. Obviously we've set a date for Presidents Day. And I think he believes that the process moves in that direction and is doing so in a good way. I'm not going to get involved in different things, especially reports I haven't altogether seen.
QUESTION: On the faith-based initiative, the previous administration believed organizations who had a faith-based focus could function best if they were free of certain federal anti-discrimination laws. This administration has a different point of view. Why do you believe these faith-based initiatives can succeed if they'd have to, let's say for example, bring into their ranks employees that they're not as comfortable with, and under the previous administration they were allowed some waivers and ability to (INAUDIBLE)?
GIBBS: Well, again, as I said to Helen's question, the executive order that he signed and in the job description of the executive director of the new office provides a mechanism that didn't exist in order to look at all of the legal issues that are surrounding the hiring and the functionality of faith-based organizations as they help to deliver what the president believes is needed help. And I think the process that the president's put in place will allow us to evaluate all of those issues, and meet the constitutional principles that the president holds in dear regard.
QUESTION: (INAUDIBLE) the president about Kyrgyzstan and the base there and reports that it might be in the process of being closed?
GIBBS: Well -- excuse me. I think the -- obviously we've seen the reports, and I believe we've been in consultation with leaders there. Obviously, Kyrgyzstan has provided an important air base in Manas that has been vital to our efforts and coalition efforts in Afghanistan. And we look forward to working with them to remedy that situation. Jeff?
QUESTION: During the presidential campaign, Mr. Obama would travel to places like Ohio and Pennsylvania and other places selling his ideas and selling his message to the people from the ground up. Do you believe that -- or does he believe that his approach on this economic stimulus bill has been successful? And is it as effective to write an op ed in "The Washington Post" as it is to sell some of these ideas from the ground?
GIBBS: Well, he could have picked any number of papers.
(LAUGHTER)
GIBBS: Kidding. I think the president believes that the work that he's involved in right now is obviously very important. And a lot of this stuff is going on in Washington. I think the president has done interviews that reach all over the country. You've seen him. He does events, obviously, that are covered all over the country.
And we're confident that the message of this stimulus package is getting through, and that it's important, and people understand the importance of that process moving forward. You know, I mean, obviously there's a million ways you can do this. But I think the president feels comfortable, very comfortable with the process. And obviously, I think whether it's a news interview, or a press conference, it gives him the ability to not just to talk to people here, but to talk to people all over the country.
QUESTION: I'd like to follow up on the faith-based thing. Is this his final word on this or will he be perhaps issuing a decision on the hiring practices overall? Or is it his intent to have the executive director of the office review these?
GIBBS: The intent and the order provides specifically for the executive director working with the counsel and seeking advice from the Department of Justice to get involved in hammering out those issues.
QUESTION: Isn't that handing off a controversial decision? Why shouldn't he make a decision on this?
GIBBS: Well, I think you can be reasonably assured, Jeff, that the decision that the White House makes will reflect the important principles that the president holds dear. It's safe to say that we don't make a lot of decisions around here that the president disagrees with. Mara?
MARA LIASSON, NPR NATIONAL POLITICAL CORRESPONDENT: Robert? Some Senate Democrats are expressing frustration that the reason why this particular stimulus package is losing popularity is because the Republicans have been very successful in focusing on these small parts of it but that are easily caricatured and that have come to define this package, where the president's just kind of staying above the fray and talking about the need to pass a stimulus package.
He said today he'd love to see additional improvements. Can you at least talk about the kinds of improvements he wants to see specifically, or is that something he's just going to wait to do until it gets to conference?
GIBBS: Well, I think that's something we're going to wait and watch and see what the Senate does. The bill is a moving target. The bill is different than it was last night. It was different than it was two nights ago.
He continues to reach out. You know, I do think we, in many ways, are -- and I've said this before, that the number of things that people seem to largely agree upon far outweigh what differences exist. There are, I think, still some that believe we may not need a stimulus plan or that doing nothing is a credible option.
LIASSON: That sounds like a straw man, I mean, that people -- you're not talking about the difference between no stimulus versus a stimulus or 100 percent tax cuts versus -- you're talking about what is the correct mix and whether these specific things should be in it.
GIBBS: Do I think that there are some proposals that the president believes are -- won't meet the size and the scope of those challenges based on the size of those packages? of course. I think you've seen that from members -- different members in Capitol Hill. I don't think that's a straw man by any stretch of the imagination. We have to move the process along and get a package and a proposal that addresses the need to create jobs, cut taxes for working families and make critical investments and things like 21st century schools and a down payment on energy independence and affordable health care. And I think the president believes that the proposal that his economic team put together and in large part what passed out of the House meets that test.
He hopes that the Senate passes something similar, and then we can come together and begin to decide the final outlines of that. But more importantly, get something to his desk and get it signed. Every day that goes by without something that gives asisstance to the American people is another day where unemployment benefits are applied for, jobs are lost, the ability for families to make decisions, like buying a car or sending a child to college are dreams delayed. And the president spoke today I think quite eloquently about the fact that the time to just to talk was over, that we needed to move forward on action. Christina?
QUESTION: This morning when Vice President Biden spoke at the MARC station in Maryland, he said of the stimulus bill, it's not our moment right now. So, given all these questions you're getting, when is it your moment, and when will the president step in and say it's so urgent it's a dream --
GIBBS: As I said earllier, I'd underscore it even more for somebody who served in the Senate as long as Senator Biden did. Both traded gigs to come here. We're not members of the House and the Senate. That legislative process is going to have to work its way through. We understand that. I think the American people understand where the president stands on these issues and the need to move something quickly forward that addresses the big challenges that they face.
Look, I've talked about it in here. This is not something that's totally going to get solved today. It's not something that we got into yesterday. It's going to be a long process. And I know we're going to evaluate it each and every day. But it's a process that will continue to move forward. (INAUDIBLE)
QUESTION: The Senate has voted to allow tax deductions on sales tax and loan interest on new car purchases. Does the president support that?
GIBBS: I would have to check and see whether -- I think you're referring to the Mikulski amendment. I don't have a specific answer to that. Obviously, we've seen earlier in the week the severe downturn in year-to-year car purchases affecting not just domestic auto producers, but now foreign auto producers as well.
QUESTION: Would he like to see something in the bill specifically targeted at auto purchases?
GIBBS: I think the president believes, without having a direct opinion on this amendment, that if we can get a bill that creates jobs and puts money back into people's pockets and turns the economy around, that that recovery and stimulus is likely to have an impact on the number of people that look to purchase automobiles each day. Obviously, we'd like to get the economy back to where, when you're reading the Detroit papers, you're reading about the increases in sales in autos, and not the decreases. (INAUDIBLE)
QUESTION: Robert, Hilda Solis's husband yesterday paid back 15 liens, some of which dated back 16 years. And granted, it's the nominee's --
GIBBS: I don't think that's what the story says.
QUESTION: (INAUDIBLE)
GIBBS: That's not the story that I read.
QUESTION: Well, regardless, it's not the nominee's husband -- I mean, it is the nominee's husband, granted. But did he pay back those liens at the direction of the White House? And does that in any way --
GIBBS: I think he paid the liens back because he owed the taxes.
QUESTION: But he owed them for a long time. (INAUDIBLE)
GIBBS: And the White House believes that if you owe taxes that you should pay them. But at the same time, this obviously is a business that she's not a partner in. And we're not going to hold her responsible for --
QUESTION: Understood. Do you have any concern that this might add to any trouble she might have getting confirmed?
GIBBS: No. I think the -- as I said, the committee released a statement that looks forward to working together to move this nomination forward even more. April?
QUESTION: Robert, your domestic policy adviser is saying one of the first orders of business for the faith-based and neighborhood partnerships initiative is to go out and tout the present stimulus package. Now, is there a line crossed with the issue of church and state as many of the committee members are church leaders? I mean, is there some kind of --
GIBBS: I have not seen the report that you're referring to.
QUESTION: No, no, it's not a report. She just said it a little while ago. One of the first things that they'll be doing --
GIBBS: Let me rephrase. I didn't see what she said. I guess I'd like to have a chance to talk to her about what she might have said. Steve?
QUESTION: Robert, the president spoke this morning at the prayer breakfast about his own path to Christianity, how he discovered it, found it on the South Side of Chicago. Does he still plan to join a church here in Washington? What's the status of that?
GIBBS: You know, I know that he has visited a couple of churches, obviously around the inaugural. And I think there's -- he and Michelle would like to visit some more and figure out a congregation in the area that they can worship in.
I think the president spoke about his faith a lot in the campaign. And I know he's -- I think he likely misses not having someplace regular to go to exercise that faith in church. Obviously, I think given the enormous problems that the country faces, it's quite safe to assume that prayer, even not in the confines of a church, is something that he practices regularly.
QUESTION: (INAUDIBLE) You referred to Tony Blair as his good friend as Tony Blair. How close is the president with former Prime Minister Blair? Does he consult with him on a regular basis?
GIBBS: I don't know the last time that they spoke. I know they've met several times when the president was overseas during the most recent campaign and also when the president traveled with Senator Lugar to overseas and back through London in 2005. I don't know if they've spoken most recently.
But obviously, Mr. Blair is somebody who has enormous experience in dealing with problems not just as the leader of a country, but now in his involvement in trying to get peace in the Middle East like George Mitchell is working on, and like the president has said that this administration will be engaged on each and every day.
QUESTION: Is there a special relationship between the U.S. and England?
GIBBS: Say that again?
QUESTION: Is there still a special relationship between the U.S. and Great Britain?
GIBBS: Absolutely.
QUESTION: Given the president's spending so much time on the economy, how important to him is Vice President Biden's trip this week in terms of laying out the new foreign policy? And will the vice president take advantage of some of the more conciliatory signs coming out of Moscow to have a meeting with the Russian delegation?
GIBBS: I'll have a longer readout on the vice president's trip to Munich tomorrow. I know he leaves, I believe tomorrow for the security conference. And we'll get a little bit more information out on that tomorrow. Thanks, guys.
UNIDENTIFIED MALE: Thank you, Robert.
KYRA PHILLIPS, CNN ANCHOR: All right, Robert Gibbs there at the White House briefing, wrapping up. Bottom line is, and something we're all paying attention to right now, you can see it live at the bottom of our screen, we are monitoring the continued debate there on the Senate floor.
Just to bring you up in date right now, the senators are working on an amendment to trim at least $50 billion in spending right now. Obama wants the bill to be signed by Presidents Day. Robert gibbs confirming that to us. In an op-ed piece today, actually, Obama called for action that he says is swift, bold and wise, something that obviously Robert Gibbs supported there up at the podium.
Meanwhile, the House version, as you may remember, of the stimulus bill passed last week with no Republican support. So now this bipartisan group of senators is meeting today, continued debate going on right now to try to find some sort of compromise on this amendment to cut some of the spending from the proposed stimulus bill. Ed Henry, how did I do to stall there until you got up to the mike?
ED HENRY, SENIOR WHITE HOUSE CORRESPONDENT: A very great job, Kyra. I mean, I think what we saw in this briefing is that the president is planning to use the bully pulpit a lot more in the coming days to try and sell the stimulus package. Even if it were to get through the Senate as early as tonight, as you know, it still has to go through a conference committee, has to get kicked back to the House of Representatives to reconcile differences between the version going through now and the version that went through last week.
We're learning and confirming now that the president will have his first news conference next Monday. He's not just going to do that in the middle of the day. He's going to do that in prime time next Monday night, 8:00 eastern. Asked whether or not the president is going to have an Oval Office address at some point in the next week or so, Robert Gibbs sort of left it as an open possibility, said there's nothing on the calendar right now, but that means it could be added.
And finally, also the president planning a speech to a joint session of Congress on February 24th. Now, we've heard that for a few weeks, that he was planning to do that sometime after the Presidents Day recess for Congress. The point of that would be, according to aides, to try to pivot forward, if in fact he's able to sign this stimulus package into law by Presidents Day, as you mentioned, the deadline that the president has had out there for a while.
The idea would be that then on February 24th, he would go to Congress, talk a little bit about bipartisanship and try to figure out where does he try to take the country from there. Because obviously, as the president has said over and over, even if the stimulus package is signed into law, there are many, many other steps he wants to take, including, we're hearing, a likely unveiling next week of a separate financial rescue package dealing with enforcement, dealing with, you know, cracking down on Wall Street.
We heard a little bit of that dribbled out yesterday in terms of trying to crack down on bonuses and excessive compensation. but this stimulus package, we have to remember, is one of many, many pieces that are being worked on now at the White House and on Capitol Hill to deal with this financial crisis -- Kyra.
PHILLIPS: Ed Henry, sure appreciate it. Live from the White House there, and as you can see right below Ed, that live picture of that debate continuing on the Senate floor.
Meanwhile, what would you ask the president? In keeping with his pledge to have the most open and accessible administration in American history, Mr. Obama welcomes your comments at the White House Web site, whitehouse.gov.
So, here's what we're going to do. You can also e-mail us here, mailtothechief@CNN.com. What we're going to do is, we're pass your questions on to the White House, hopefully get some answers and we'll read some of them on the air.
(COMMERCIAL BREAK)
PHILLIPS: Well, the debate continues on the Senate floor. Trying to determine what's going to happen with that stimulus bill.
Meanwhile, Rick Sanchez takes it from here. We'll be back tomorrow.
