U.S. President Elect Obama and Federal Spending

Obama Proposes Health Care, Community and Urban Development Changes

Nov 9, 2008

U.S. President-elect Barack Obama proposes key changes to health care and community development that will increase federal spending.

Each year that Barack Obama is President of the United States, he will draft a budget for Congress to adjust. The health care and community development policies that Obama has put forth will significantly increase federal spending.

According to the National Taxpayers Union tallies as of Sept. 25 (preceding the bailouts), Obama's proposals would increase federal spending by about $293 billion total in the first year alone. The tally would be even higher without a key part of his plan--an $72.67 billion decrease in defense spending. These figures were calculated from hundreds of Obama's own words, government estimates, and results of equivalent legislation. Important to remember is the simple fact that the more the government spends, the more revenue it needs. Without raising taxes, government spending increases add to the national debt, a tally of the money the U.S. owes other countries.

Health Care

Obama’s health care plan would cost the government over $139 billion in its first year, about $101 billion of which would go toward a comprehensive health plan. Included in this plan is public insurance for the uninsured, and a National Health Insurance Exchange to help businesses directly purchase insurance.

An additional $1.3 billion would go to community health centers. Obama would close the “doughnut hole” in Medicare prescription drug coverage, which would cost $29.573 billion.

Obama also supports community-based attendant services and would spend $5.4 billion to increase Medicaid coverage for these services, which assist in making people with disabilities more independent. He would further support people with disabilities through his autism initiatives, whose cost estimates range from $250 million to $1 billion in a year.

The Local Angle

Local community projects are another large part of Obama's plan. For example, the Obama campaign proposes a $1 billion plan over five years to provide transitional jobs and other help to low-income people seeking to “move up the career ladder”. In his debates with McCain, Obama has spoken about federally supporting job creation through the building of bridges and roads. According to Obama’s Web page on urban poverty, his plan increases funding for the Community Development Block Grant program to Pre-Bush administration levels. In 2007, this program cost over $4 billion, and would cost $1.693 billion more in the first year alone of Obama’s administration.

The technology section of Sen. Obama’s Web site discusses expanding broadband access for low-income people, estimated at about $40 million. Obama advocates public partnerships and studies of current community broadband initiatives to find effective and efficient ways to expand access.

Another of Obama’s business initiatives would use $250 million per year to create a “public-private network of business incubators”. Business incubators provide both resources and advice in creating a start-up company.

Over five years, Obama also wants to spend $300 million on 20 Promise Neighborhoods in high-poverty, high-crime urban areas. The goal for these neighborhoods is for children and their parents to work together, preparing for every student to go to college and focusing on both physical and mental health.

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