Bush administration rules out second stimulus

The White House said Monday that President Bush will not present Congress with a second economic stimulus package, leaving Democrats to prepare a package for President-elect Obama to sign after he takes office next month.

White House spokesman Tony Fratto said Monday morning that while he expects Obama and congressional Democrats to take up a second plan, “it’s not something we’ll be doing.”

{mosads}”I don’t think there’s any chance of a second stimulus from this administration in the days we have remaining,” Fratto said.

Congress is set to return in early January and take up work on the second package in an effort to present Obama with something he can sign shortly after Inauguration Day.

Estimates of the second package have increased to $850 billion in recent days, with a heavy component set aside for “shovel ready” infrastructure projects that Obama said will contribute to his goal of adding 2.5 million new jobs to the economy.

Obama could also be in the position of requesting Congress release the second half of the already passed $700 billion financial rescue package Bush signed, Fratto said.

Fratto said a number of economic conditions could persuade the current administration to ask for the remaining $350 billion, but he declined to speculate as to whether this or the next administration would actually ask for the release of the funds.

With less than 30 days remaining in the Bush administration, it is unclear whether the president will hold a last news conference or deliver a farewell address.

Fratto would not commit one way or another to the president holding a final news conference. Bush declined to hold one toward the end of the presidential campaign.

And while Bush is considering delivering a farewell address, Fratto would only say that Bush is “thinking about some ideas, but he hasn’t made a decision yet.”