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Bush’s New Bailout Request

Bush’s New Bailout Request

The Bush administration and the Obama team have teamed up to propose a new bailout request. They plan to ask for the second half of the $700 billion financial rescue package soon. Even though there is fierce opposition in Congress, the two teams have determined to push through.

This newest decision leaves the Bush administration and the Obama administration straddling a major decision. If Congress dismisses the request, either President Bush or President Obama could potentially veto the dismissal. However, the Obama team hopes that President Bush will be left with the chance to veto the request.

Afterall, it wouldn’t be starting out on a good note to use his veto power as soon as President Obama takes over the White House. The bailout bill is already a very heated subject and President-elect Obama would rather not have to use his veto power to get the second half of the money into circulation. However, he will do so if necessary.

White House press secretary Dana Perino said, “There have been discussions between the administration and the transition team on how to proceed should the president-elect determine that he would like President Bush to notify Congress on his behalf of the intent to use the remaining $350 billion so that it will be available early in the new administration. No final decisions have been made.”

Congress is expected to take a vote on the action as early as next week. Here’s how the process works:

The Presidential administration must “inform lawmakers that it wants to access to the second” half of the bailout plan…the remaining $350 billion.

The U.S. Treasury can begin releasing the funds unless Congress rejects the request within 15 days.

If Congress does turn down the request, the president could use his veto power to access the money.

The only way the money could be blocked is if Congress overrides the veto. This would require a two-thirds majority in both chambers of Congress.

Bush and Obama say that accessing these funds is critical in getting the economy back on track. It would be virtually impossible to provide relief to troubled homeowners, stabilize the failing financial system or get the credit markets back moving without the funds. However, they do face a great deal of criticism from Congress.