Stagnant Prices Prevent Social Security Increase

Obama Endorses $250 Emergency Payments

By Amy Goldstein and Neil Irwin
Washington Post Staff Writers
Thursday, October 15, 2009

President Obama on Wednesday attempted to preempt the announcement that Social Security recipients will not get an increase in their benefit checks for the first time in three decades, encouraging Congress to provide a one-time payment of $250 to help seniors and disabled Americans weather the recession.

Obama endorsed the idea, which is expected to cost at least $13 billion, as the administration gropes for ways to sustain an apparent economic rebound without the kind of massive spending package that critics could label a second stimulus act

The administration is already developing plans to direct billions of dollars in federal money to small businesses through community banks, government sources said Wednesday. That would probably include funds originally targeted to help bail out huge corporations. Obama aides are also attempting to extend programs to make loans from the Small Business Administration cheaper and easier to obtain.

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