loan program. under the federal loan program,i we loan -- they make the loans we guarantee about $9 billion a year.ashed, the became clear that it was not even available to a government guaranteed loan. we directly gave the money to the lenders. that really makes no sense. so what the president has asked us to do is to take that $8 billion in subsidies that we're essentially giving to the largest banks and the sallie mae and recycle the money on behalf of students and their families and institutions. we will put $40 billion into pell grants for students, a significant number of people returning toñr school to get new skills for new jobs. that was $40 billion for those people that need that. they are relatively low-income individuals. we put money for the first time to help rebuild the college structure, pick -- the corqggaty college structure. xdwe putÑi about $10 billion ino their. we will put the money into school construction but that the k-12 -- both at the k-12 level and at the community college level to help expand their capacity. we also learned that children exposed to high quality of early

loan program. under the federal loan program, we loan the loan agencies, salie mea or banks, they make the loans. we guarantee the loans. they make the profit on the interest and we end up paying about $8 to 9 billion a year in subdis. when the credit markets crashed, it became clear that credit wasn't even available to a government guaranteed loan. we put in an emergency basis where we directly gave money to the lenders. that makes no sense. and so what the president has asked us to do is to take that $8 billion in subsidies that were given to the largest banks and salie mea and recycle that money on behalf of students and their families. and institutions. so we'll put $40 billion into pel grants so those students who are significant number of people returning to school to get new skills for the new economy and for new jobs, and so that would put $40 billion into those people who need that because of the relatively low income individuals. it would also put money for the first time into help rebuild the community college structure that are becoming more and more of the focal point of job retraini

we want students to have had to borrow money -- almost everybody i know -- through a federal loan program what they are earning, and as long as their pain that back -- paying back back. -- paying that back. otherwise, they make a god awful choices -- then it got awful choices which they should not have to. -- they make godawful choices which they should not have to. we are acting to offer a better retirement plans. middle-class americans can save money, but in -- can save money confidently. it is automatically taken out -- whether it is a defined benefit plan, just to save. people do it. they do not want to do it and they do not have to. but every employer has to provide this service for their employees. we want to simplify and expand the sabres credit where -- the saver's credit, where they can get their savings maxed. we need to put people's positions so that they have some confidence and the capacity -- confidence in having a retirement where they are not dependent. we are enhancing the ability to make sure workers are protected by overtime rules that are -- so that employees are accur

the only remaining lending program for multiple borrowers created under the federal reserve emergency authorities, the term asset backed securities loanacility is scheduled to close on march 31st for loans backed by all types of collateral except for newly issued cmbs and on june 30 for loans backed by newly issued cmbs. in addition to closing its special facilities the federal reserve is normalizing lending to commercial banks through the discount window. the final auction of discount window funds to depositories to the term auction facility which was created in the early stages of the crisis to improve liquidity of the banking system will occur on march 8th. last week we announced that the maximum term of discount window loans which was increased to as much as 90 days during the crisis would be returned to overnight for most banks as it was before the crisis erupted in august, 2007. to discourage banks from relying on the discount window rather than private funding markets for short-term credit last week we also increased the discount rate by 25 basis points, raising the spread between the discount rate and the top of the target ran

the federal reserve has announced the first step toward unwinding its financial rescue programs. it raised the interest rate today on emergency loansto banks. the move has no effect on consumer borrowing. and wall street rang up gains for a third straight day. the dow jones industrial average added more than 83 points to close near 10,393. the nasdaq rose 15 points to close at 2,241. former new york city police commissioner bernard kerik now faces four years in federal prison. he was sentenced today after pleading guilty to lying about taxes and other financial dealings. the charges stemmed from statements to white house investigators in 2004, when kerik was nominated to be head of homeland security. he ultimately withdrew from consideration. at the winter olympics in vancouver, canada-- american athletes went looking for more wins after taking six medals on wednesday, the best day ever for the u.s. at any winter games. today, in the women's super- combined ski race, the gold went to maria riesch of germany. she beat out american julia mancuso, who took silver. tonight's highlight is the men's figure-skating final. those are some o

propose folding tifia program into the fund and does it make sense to have the federal programs, the fund and tifia that makes loans and provide other forms of credit? finally, it would appear that this new fund is similarly about a transportation. the bank as you know would have gone beyond transportation infrastructure to the environment and energy, telecommunications. is it the sense that we're going to start out expand it to other sectors? or do you believe we should just do a transportation infrastructure if you house it within d.o.t., it does become problematic if other sectors are to be added in the future. let me ask you all at once. i never get three questions. >> that's okay. i think there were more than three. that's fine. why don't i actually propose. i know this is an issue that we discuss that lungs in the past. it's something that you feel passionately about. the basis goal here is to get a concept operational building on the success that we have had on the tiger grant that has been successful, get the a concept operational and after proof of concept, it could be expanded into other areas and spun of

the only remaining lending program created under the federal reserve's emergency authorities, the term asset- backed securities loancility, is scheduled to close on march 31. in addition to closing its special facilities, the spat -- the federal reserve is normalizing its lending to commercial banks through the discount window. the final auction of discount- window funds to depositories through the term auction facility, which was created in the early stages of the crisis to improve the liquidity of the banking system, will occur on march 8. last week we announced that the maximum term of discount window loans, which was increased to as much as 90 days during the crisis, would be returned to overnight for most banks, as it was before the crisis erupted in august 2007. to discourage banks from relying on the discount window rather than private funding markets for short-term credit, last week we also increased the discount rate by 25 basis points, raising the spread between the discount rate in the top of the target range for the federal funds rate to 50 debate -- to 50 basis points. these changes are in response to

program or with respect to the mortgage association, federal home loan mortgage or bank, et cetera. so we had a bill that dealt only with t.a.r.p. recipients, fannie and freddie, and it put tough restrictions on them to be administered. they voted against it. so it is not my fault there wasn't the power to do that more. i think they got too much money over the christmas eve period. i believe the remedy is to in fact, as the believe the committee will be recommending, abolishing fannie and freddie and come up with a new system. the fact is there were two wills. the republicans voted against both of them. one covered private and public. one bill they voted against was specifically fannie mae and freddie mac. the senate didn't take them up. if they want to blame the senate, that's okay for them to say it. i don't know why the senate might not take it up is for the house to vote no. we put forward a bill that would have toughens restrictions on compensation at the t.a.r.p. recipients and fannie mae and freddie mac in april. they voted against it. now to divert attention that makes them

program to help community banks increase lending. last week, he announced a $33 billion tax credit for businesses that add jobs. and, in its budget blueprint the administration proposes other tax and federal loan measures. today mr. obama again focused on the issue at the meeting with senate democrats. >> what's happening is businesses, either because they can't find financing or because they're still just dipping their toe in the water, have been hesitant to hire full-time workers. and for us to start giving them some serious incentives, giving them additional access to financing, could accelerate a process that otherwise could take a much longer time and, frankly, all those folks out there who are out of work right now, they just can't afford to wait any longer, they need it now. >> woodruff: we get two perspectives on the president's proposals. for that we turn to bill rys of the national federation of independent business, a member organization that represents small businesses. and john arensmeyer, president of the small business majority, a non profit advocacy organization. gentlemen, thank you both for being with us. let's take these proposals one by one. first, a couple of new tax break

folding tfia program into the fund and does it make sense for dot to have two federal credit programs, the fund and tfia that make loans and provide other forms of credit to assist with surface transportation? finally, it would appear that this, new fund is, singularly about transportation. the bank, as you, know, would have gone beyond transportation infrastructure to the environment and energy, telecommunications. is it a sense we'll start out with transportation, expand it to other sectors or does, or do you believe we should just do it, transportation infrastructure, if you, how is it within., it does become problematic if other sectors are to be added in the future. let me ask you all at once. sorry for all of that. i never get three questions. >> i think, there are more than three but that's fine. why don't i actually propose, let me, i know this is an issue that we have discussed at length in the past and something that you feel passionately about. >> right. >> the basic goal here is to get a concept operational, building on the success that we have had with the tiger grant program that has been successful. get

accounts and private student loans as long as new rules to ensure that there a meaningful opportunities to avoid overdraft fees. the federal reserve has implemented a programor non- bank subsidiaries in foreign banking organizations. the federal reserve is committed to doing all that can be done to ensure our economy is never again devastated by a financial collapse. we look forward to working with the congress in developing comprehensive reform of the framework. thank you, mr. chairman. >> one of my colleagues raised the question of small business. i was pleased to note on page 13 of the report you sent the federal financial regulatory agency supervisor's statement telling the regulators in the field not to overdo it. that is not mean you think they are. it is a mixed message problem that we have. i'll not take too much time. we have a hearing on friday on that subject. it has been snowed out. it is an all day regulation. people will be testifying. we appreciate your doing this. it is very important. we are getting everybody in the same room. the bank said the regulators are being too tough. the regulator said there is not enough demand. the bar said the

program tonight and all this week as well. you may have heard in the president's comments his mention of the federal loan guarantees for the newt clear, and alan flint from the nuclear energy institute here to talk about president obama's announcement yesterday that the government will be backing new guaranteed loans of fourxd nuclr power plants, specifically starting with two reactors in georgia. can i get your reaction first to the announcement? guest: a terrific event for us. it represents a remarkable moment in time. we have seen an evolution about the discussion on energy and climate, efforts to enact legislation to control card and limitations, increasing awareness about difficult it can be bought to meet our electricity requirements and some of the decisions that need to be made about what technologies we should pursue. the fact the president has come to the table and said nuclear has to be part of the mix and the administration is willing to support efforts to build new reactors is a tremendous milestone. host: is it enough? lindsey graham, who has been a supporter of climate change legislation if it includes provision

remaining flinty program for multiple borrowers created under the federal reserves emergency authorities is the term asset-backed facility, or talf, and is scheduled to close on march 31 for loans back but all types of collateral except for newly issued commercial mortgage-backed securities and it will close on june 34 loans backed by newly issued cmbs. >> in addition to closing its special facilities the federal reserve is normalizing its lending to commercial banks to the discount window. the final auction a discount window funds to depositories to the term auction facility which is great in the early stages of the crisis to improve the liquidity of the banking system will occur on march 8. last week we announced the maximum term of discount window loans which was increased to as much as 90 days during the crisis would be returned to overnight for most banks as it was before the crisis erupted in august 2007. to discourage banks are relying on the discount window rather than private funding markets for short-term credit, last week we also increases the discount rate by 25 basis points, raising the spread between the discount rate and the top of the target range for the federa