Obama looks to bypass Congress with help for homeowners, students
| Washington
鈥淵es we can鈥� is out. President Obama鈥檚 new slogan: 鈥淲e can鈥檛 wait.鈥�
After the Senate blocked consideration last week of Mr. Obama鈥檚 jobs proposal, the administration has moved to Plan B: bypass Congress and enact change via executive-branch measures. On Monday, the federal government announced new rules for some 鈥渦nderwater鈥� homeowners, to make them eligible for lower interest rates.
The president will discuss the new program in a speech in Las Vegas Monday at 5:30 p.m., Eastern time. Nevada has both the highest unemployment (13.4 percent) and foreclosure rates in the United States, and it鈥檚 a crucial swing state in next year鈥檚 presidential election.
In the 鈥淲e can鈥檛 wait鈥� initiative, the administration is 鈥渢aking and highlighting a series of executive actions to show that we鈥檙e doing everything we can do to get the economy moving to help middle-class families and create jobs,鈥� said Dan Pfeiffer, White House communications director, in a call with reporters.
At the same time, Mr. Pfeiffer said, the administration will continue to pressure congressional Republicans to pass the president鈥檚 $447 billion jobs bill, the American Jobs Act, either in its entirety or piece by piece.
In his Las Vegas policy speech, the president will also highlight part of the American Jobs Act called Project Rebuild, which aims to stabilize blighted neighborhoods. Federal money would be used to leverage private capital to hire construction workers, who would rehabilitate homes and businesses.
鈥淚f Congress would act, we could get Project Rebuild funded and helping homeowners right away,鈥� White House press secretary Jay Carney told reporters on Air Force One en route to Las Vegas.
On Wednesday, Obama will announce new rules for repayment of federal student loans in a speech in Denver, capital of another election battleground state, Colorado.
It鈥檚 not clear how many jobs will be created from these policy changes, but they at least demonstrate movement in areas that have been financially devastating to some Americans. When the housing bubble burst in 2008, causing housing prices to fall sharply, many Americans became trapped in homes they could no longer afford. Many are 鈥渦nderwater,鈥� that is, they owe more than their house is worth.
The president鈥檚 plan announced Monday is a revision of the Home Affordable Refinance Program and would reduce the barriers to refinancing loans that are guaranteed by Fannie Mae and Freddie Mac. The revised refi program could save homeowners up to $200 a month, the administration says.
The office of Republican House Speaker John Boehner took the new 鈥淲e can鈥檛 wait鈥� slogan and turned it into a list of things 鈥渟truggling families and small businesses 鈥榗an鈥檛 wait鈥� for鈥�: jobs bills passed by the Republican-controlled House to be taken up by the Democratic-controlled Senate; Obama to stop campaigning for 鈥渕ore failed 鈥榮timulus鈥� spending and start working to find common ground鈥�; the Obama administration to 鈥渆nd delays on job-creating American energy production鈥�; and the Senate to pass a budget.
If imitation is the sincerest form of flattery, then Obama should feel pretty good: His new slogan is now framing the discussion. And on the foreclosure crisis, which was barely discussed in last week鈥檚 GOP debate in Las Vegas, the president is bringing media attention to the ground zero of foreclosures.
Former Massachusetts Gov. Mitt Romney, a leading Republican presidential candidate, made comments last week on the foreclosure crisis that the Obama campaign has been happy to highlight. One way to deal with the housing situation is, 鈥渄on鈥檛 try to stop the foreclosure process,鈥� Mr. Romney told the Las Vegas Review-Journal鈥檚 editorial board in an interview published Oct. 20. 鈥淟et it run its course and hit bottom.鈥�
During the debate, Romney said, 鈥淭he right course is to let markets work.鈥�
The Obama campaign reacted immediately. 鈥淢itt Romney鈥檚 message to Nevada homeowners struggling to pay their mortgage bills is simple: You鈥檙e on your own, so step aside,鈥� wrote Ben LaBolt, campaign spokesman, in a statement. 鈥淭his is just one more indication that while he will bend over backwards to preserve tax breaks for large corporations and tax cuts for millionaires and billionaires, Mitt Romney won鈥檛 lift a finger to restore economic security for the middle class.鈥�
During his West Coast swing, in addition to policy speeches, Obama will attend fundraisers in Las Vegas, Los Angeles, San Francisco, and Denver. While in Los Angeles, Obama will appear on NBC鈥檚 鈥�The Tonight Show.鈥� Republicans call the trip a campaign tour.
