Wednesday, February 26, 2014

Amid military cuts, Obama urges $300B for roads and railways

obama_minn_022614.jpgJust two days after the Pentagon outlined major cuts to the U.S. Army and other military programs, President Obama is calling for a whopping $300 billion commitment for America's roads, bridges and mass transit systems -- though as much as half comes from a tax plan that has bleak prospects on the Hill. 
The president talked about the stimulus-style plan during a stop Wednesday afternoon in St. Paul, Minn. Officials say the money, as proposed, largely would come from "pro-growth business tax reform." But aside from the challenges in pushing tax reform, Obama could have a hard time making the sell when his military leaders, just days ago, were complaining about the budget crunch. 
Moments before the president took the podium, the Republican National Committee also questioned whether new transportation spending would be the jobs engine the administration claims. 
"President Obama claimed that the $830 billion stimulus would spend money on shovel-ready projects that would repair our country's infrastructure," RNC spokesman Jahan Wilcox said in a statement. "If the president couldn't fix our economic problems the first time, then why would we trust him with another blank check?" 
On Monday, Defense Secretary Chuck Hagel proposed shrinking the Army from its current level of 522,000 to between 440,000 and 450,000, which would be the lowest level since before the World War II build-up. He called for a range of other cuts including retiring the A-10 fleet for a savings of $3.5 billion. Military officials said they need to cut $75 billion over two years, to comply with congressionally mandated reductions. 
The $302 billion infrastructure fund Obama is talking about would last for four years, but more than eclipses the budget shortfall the military is grappling with. 

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