President-Elect Names His Budget Director

Nov. 25, 2008 — -- 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.

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.

"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."