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Washington Prowler
Stimulating the Stimulus
Rahm Emanuel moves to unclog the spending spigot.
White House chief of staff Rahm Emanuel hadn't been paying much attention to the ongoing effort by various Cabinet agencies, such as the Departments of Commerce, Energy, Health and Human Services, and Education, to disburse federal economic stimulus dollars, but he's paying attention now, according to White House sources.
Emanuel's sudden focus comes as reports continue to pour in that tens of billions of the federal dollars the Obama Administration claimed would "save jobs or create new jobs" have not been distributed to states or to entities, such as private businesses, to do what the administration expected.
"It may be that the global economy is stabilizing, and it may be that parts of the U.S. economy are stabilizing, but we're still looking at double-digit unemployment nationally, and a lack of confidence in the economic recovery," says a White House source. "The agencies have made it harder, not easier to get the stimulus dollars, and Rahm is trying to unplug the drain and get the money flowing. It's now a political issue and an economic issue."
It may not be that easy, in part, because the White House Office of Legislative Affairs and perhaps Emanuel himself left much of the stimulus bill to Democrats on Capitol Hill. Democrats in the House and Senate weighed down the stimulus bill with regulatory requirements for the hundreds of billions that were to be spent to stimulate state and local economies, some of the regulations so onerous that few qualified companies sought the federal money.
"First, you had the House and Senate's demands for regulations, then companies had to wait while the federal agencies created the regulations that Congress asked for," says a Senate Finance Committee staffer. "This was not free money; it was money with a lot of strings attached, and the White House just let it happen that way."
Those strings are now the red tape that has limited the stimulus plan's ability to do much of anything, and Emanuel wants to get the money moving out the door. White House sources say he is holding meetings with Cabinet department officials and demanding results soonest, and is asking the White House legislative affairs shop and the White House counsel's office to provide ways to sidestep federal regulatory policies to speed up the distribution of funds.
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Dixie| 10.13.09 @ 7:38AM
Which goes to prove the level of ineptitude in this administration. They are amateurs of the highest degree. While they fumble and bumble and attack Fox news (heh), families suffer, the dollar slides and the future gets dimmer by the day.
To hell with hope and change. Let's put some adults back in Washington and put these kiddies back in the playground where they belong.
Stephanie| 10.13.09 @ 8:14AM
Hope n' Change has lost it's luster.
BACK TO CHICAGO BOYS AND GIRLS!
JP| 10.13.09 @ 7:44AM
Too bad the President and his geniuses didn't see this coming. It's a little too late now to begin thawing the regulatory gridlock that Pelosi and Reid constructed last winter. Now that the Stimulus is law, it isn't as simple as making phone calls and demanding results. The legislative affairs people must contact the correct committee and sub committee chair, who in turn must find the correct staffers, who in turn must stop whatever bills they are working on and rewrite the pertinent paragraphs of the law in such a way as to allow the money to flow. To make matters worse, lobbiest will be tipped off to what is happening and they will attempt to get thier constituents in on the gravy train. Hours turn into days; days weeks and weeks months. The rewritten laws then must be voted on in committee and finally passed in both Houses. To free up even just $10 billion to build a community centers in Chicago, New Jersey, and LA could take until Christmas.
Better to take the remaining $450 billion and use it for target tax cuts (take your pick). Congress could have the bill written and passed in 2 weeks -like they did the original Stimuls.
Lullaby's, Legends and Lies| 10.13.09 @ 12:50PM
“It isn't as simple as making phone calls and demanding results. The legislative people must contact the correct committee and sub committee chair, who in turn must find the correct staffers, who in turn must stop whatever bills they are working on and rewrite the pertinent paragraphs of the law in such a way as to allow the money to flow. To make matters worse, lobbyist will be tipped off to what is happening and they will attempt to get their constituents in on the gravy train. Hours turn into days; days into weeks, and weeks into months. The rewritten laws then must be voted on in committee and finally passed in both Houses."
But Doc? Am I going to get a new heart, or what?
(I thought you were describing a Doctor / patient diagnosis, in the future, after President Obama’s Health Care/public option is passed!!)
It’s scary how similar it might sound, isn’t it?
J. Kelley| 10.13.09 @ 8:19AM
This so called Stimulas Bill was always intended to pay back Surporters of Dems. And to help the Dems in the 2010 midterm elections. That is when most of the money will be spent. It was never intended to help the economy recover. The Congress and Obama have done nothing to help the economy. That is to cut taxes and get out of the way. We must make a change in 2010 and 2012.
Percy| 10.13.09 @ 9:22AM
"White House sources say he is holding meetings with Cabinet department officials and demanding results soonest, and is asking the White House legislative affairs shop and the White House counsel's office to provide ways to sidestep federal regulatory policies to speed up the distribution of funds. "
We don't need any bothersome regulations. Let's just start writing checks to our friends.
What could possibly go wrong?
Howard| 10.13.09 @ 9:31AM
The geniuses in Washington always believe that complexity is superior to simplicity. The congressional staffs are virtually all lawyers. They do what they are trained to do. And the civil servants who actually administer these convoluted laws have to CYA. So, if you are a "tenured" civil servant, what is the rush? They get paid every two weeks. Don't worry be happy!!
Ray| 10.13.09 @ 12:03PM
How interesting. The very same administration which believes that our economy can only be protected through more federal regulations is now complaining about increased federal regulations.
Pete| 10.13.09 @ 2:05PM
What a conundrum. They need to disburse the money NOW so they can claim credit for the economy's natural recovery, but they want to save a fair bit of it to fix the next elections. The debate must be fierce.
Houston Rao| 10.13.09 @ 3:21PM
"is asking the White House legislative affairs shop and the White House counsel's office to provide ways to sidestep federal regulatory policies to speed up the distribution of funds"
Hey, while you are at it, can you have them provide ways for us to sidestep federal regulatory policies as well? Say for declaring income - after less money declared is more money in the economy and thus a mini-stimulus. Genius!!
Mike| 10.13.09 @ 3:26PM
I deal with the govenment every day. For every dollar it gives you, you'll spend two proving how it was spent. There is no such thing as free government money.
Marc Jeric| 10.13.09 @ 3:28PM
No regulations will stop ACORN brownshirts from receiving that $8.5 billion in time for their 2010 census work and election fraud. That is what Abu Hussein from Kenya, our Community Organizer-in-Chief reserved for them in his stimulus bill.
Les| 10.13.09 @ 3:33PM
If I remember the task of overseeing the spending was non other than our V.P. Joe (Dipsquat) Biden. And remember the leader siad "Nobody messes with Joe", of course that excludes Dead Fish Emanuel
Dai Alanye| 10.13.09 @ 3:34PM
Only a genius like Obama could have figured out a stimulus this wonderful. No longer any doubt about it—he's the smartest President ever!
Let's hurry and put him up on Rushmore now, before he's re-elected in 2012.
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