WASHINGTON — President Obama is venturing out of the White House today for a Western swing that will see him sign into law the $787-billion stimulus package and roll out a plan meant to keep struggling families from losing their homes.
The two-day trip to Denver and Phoenix reflects a decision by the president to escape the Beltway at least once a week in hopes of staying in closer contact with ordinary Americans. The visit also taps into Obama's political strength, placing him in front of supportive crowds eager for any financial relief the stimulus will deliver.
The president is to sign the stimulus bill in Denver today; a day later, in Phoenix, he'll announce details of a plan to avert home foreclosures.
"Denver is emblematic of the crisis that America's economy is facing, but also of the benefits that American communities can see from this recovery plan," said Bill Burton, a White House spokesman. "A lot of middle-class families will be able to take advantage of the tax cuts in the plan.
"Arizona is a place where the housing crisis is most felt."
Last week, Obama traveled to Elkhart, Ind., and Fort Myers, Fla., for town hall-style events intended to pressure Congress into passing the stimulus bill. In the Denver area, unemployment has climbed sharply. The jobless rate stood at 6.3% in December, according to preliminary data compiled by the Bureau of Labor Statistics, up from 4.4% the year before.
In using Arizona as the backdrop to announce his housing plan, Obama is choosing a state hit hard by foreclosures. In January, more than 4,500 homes in Arizona were repossessed, the third highest number in the nation, according to RealtyTrac, a company that collects foreclosure data. Last month, California ranked first.
Obama has dropped hints about the broad outlines of his housing plan, estimated to cost $50 billion to $100 billion. Speaking in Elkhart last week, he said he would push for a new law that allows judges to rewrite the terms of a mortgage for homeowners who land in bankruptcy court.
Without such a law, people are being forced into "foreclosure who potentially would be better off, and the bank would be better off, and the community would be better off if they're at least making some payments, but they're not able to make all the payments necessary," Obama said.
The following day, in Fort Myers, Obama outlined an arrangement in which banks would accept lower payments from homeowners in return for an equity stake once housing prices recover.
