Budget: June 2009 Archives

President Obama has gone out of his way to defer to Congress on some his biggest legislative priorities in the areas of health care, energy, education and immigration. And his detached position on the political upheaval in Iran prompted skeptics on Capitol Hill to wonder if the president was leading or allowing events to dictate a response.

Time, then, for the commander-in-chief to bring out the stick hidden under his desk and silence those questioning his resolve.

On Wednesday, Obama issued the first veto threat of his presidency, stating he would refuse to sign the House's version of the fiscal 2010 defense authorization bill (HR 2647) if it includes either of two provisions: $369 million in advanced fiscal 2011 procurement funds for the F-22 aircraft or $603 million for development and procurement of the alternative engine program for the F-35 Joint Strike Fighter.

Obama Takes Vow of Fiscal Sanity by Embracing PAYGO Rules

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President Obama talks to lawmakers at the White House. (Getty)

President Obama continues to enjoy strong public approval ratings in virtually every category, except when it comes to spending and the deficit.

And though White House strategists swear they don't fixate on day-to-day blips in public opinion, they surely are concerned that the administration's budget proposals are projected to swell the deficit above $1.8 trillion this fiscal year -- a record in dollar terms and also the biggest deficit as a percentage of the gross domestic product since the end of World War II.

So it was hardly coincidence that Obama on Tuesday took a high-profile vow of fiscal responsibility by calling for a return to statutory "pay-as-you-go" treatment for legislation. The deficit-control rules were first written into law in the Budget Enforcement Act of 1990 (PL 101-508), but Republicans who controlled Congress for most of the current decade allowed them to lapse at the end of fiscal 2002, preferring to require offsets for new entitlement spending but not for tax cuts.

May Jobs Report Triggers More Stimulus Spin

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Friday's news that the economy shed another 345,000 jobs in May triggered one of those "good news, bad news" moments at the White House and sent critics and supporters of the economic stimulus package (PL 111-5) into heavy spin mode one more time.

The job losses were lower than had been feared, which almost qualifies as a cause for celebration for an administration increasingly intent on demonstrating that its $787 billion pump-priming of the economy is working.

Vice President Joseph R. Biden Jr., who's minding the store while President Obama travels in Europe, met with Council of Economic Advisers Chair Christina Romer and his chief economist, Jared Bernstein, then tried to sustain the administration's careful management of public expectations in remarks to reporters.