President-Elect Names His Budget Director

President-elect Barack Obama appointed his new budget director today and ordered him to reform a federal budget that "bleeds billions" to help pay for the massive bailout of the economy.

President-elect Barack Obama, flanked, by Budget Director-designate Peter Orszag, left, and Deputy Budget Director-designate Rob Nabors, speaks during a news conference in Chicago, Tuesday, Nov. 25, 2008.

(Charles Dharapak/AP Photo)

Obama held his second news conference in two days, speaking hours after Treasury Secretary Henry Paulson laid out plans for another $800 billion to bolster the economy.

Obama has also promised his own stimulus plan, that could cost as much as $700 billion.

"If we're going to make the investments we need, we must also be willing to shed the spending we don't [need]," Obama said.

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"We cannot sustain a system that bleeds billions of taxpayer dollars on programs that have outlived their usefulness, or exist solely because of the power of a politician, lobbyist or interest group," Obama said. "We simply cannot afford it."

The president-elect singled out a new report about crop subsidies.

"Let me give you one example of what I'm talking about," Obama said. "There's a report today that from 2003 to 2006, millionaire farmers received $49 million in crop subsidies even though they were earning more than the $2.5 million cutoff to qualify for such subsidies. If this is true, it is a prime example of the kind of waste I intend to end as president.

"Budget reform is not an option," he said. "It's a necessity."