Obama to deliver $1.2 trillion stimulus fund to Congress, officials say

WASHINGTON — President Barack Obama on Thursday will deliver $865 billion in federal spending to help finance the nation’s response to the global economic crisis.

The White House announced the money would come from the $700 billion in stimulus funds set aside for the coming fiscal year.

The money will be used to support the growth and jobs of American workers, boost the health and well-being of Americans and reduce our country’s reliance on foreign oil, the White House said in a statement.

The Obama administration announced the stimulus fund on Thursday to provide an initial $300 billion and an additional $150 billion over five years, but that funding would be used for an even bigger stimulus package.

The $700-billion package will provide $400 billion in tax relief, including for the middle class, and $70 billion in direct aid to states and cities, the president’s office said.

The administration is also announcing an additional 1.5 trillion dollars in stimulus funding to help bolster the economy.

It will be paid for with the Federal Reserve’s own funds.

The announcement came as the White Senate began negotiating with Congress on legislation to fill the $1 trillion hole left by the massive recession that began in December 2007.

The new stimulus package is expected to be passed by the Senate this week.

President Joe Biden has said he expects to sign the bill into law this week, but Republicans have vowed to block it if it is not enacted.

House Speaker John Boehner is expected on Thursday evening to release a revised version of the legislation that would allow Congress to extend unemployment benefits for up to three months.

The White House has not yet indicated whether that would be part of the new package.