President Obama proposes $250 payments to elderly or disabled people during recession

From Reuters:

WASHINGTON - President Barack Obama on Oct. 14 proposed another $13 billion in spending next year -- or $250 per person -- to help some 57 million senior citizens, disabled people and military veterans weather the economic recession.

The funds would extend the one-year $250 "Economic Recovery Payments" program approved this year as part of the $787 billion economic stimulus package, but administration officials said it should not be viewed as the start of a second stimulus plan.

"Even as we seek to bring about recovery, we must act on behalf of those hardest hit by this recession," Obama said in a statement urging Congress to approve the plan.

"These payments will provide aid to more than 50 million people in the coming year, relief that will not only make a difference for them, but for our economy as a whole," he said.

An administration official said the president would not insist that the $13 billion program be paid for by offsetting cuts in federal spending. The official said in the context of a recession, such spending is often not offset.

"We're going to have a conversation with Congress about the details, but one of the things the president will insist on in that conversation is that whatever way it's structured, Social Security solvency would not be adversely affected," the official said, referring to the government retirement program.

Congress would need to draft legislation enacting the measure and approve it.

Obama's call for Congress to expand the program of $250 payments for another year comes as people receiving Social Security benefits face the prospect of no cost of living increase next year.