Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Economics

DeFazio: Summers, Geithner Oppose Using Bailout Money on Infrastructure

As Streetsblog Capitol Hill readers may know, there is no love lost between lawmakers on the House transportation committee and President Obama's economic advisers.

When the Obama administration first pushed to delay the next federal long-term infrastructure bill by 18 months, transport panel chairman Jim Oberstar (D-MN) quipped that "folks in the economic gang at the White House" -- think economic adviser Larry Summers -- "never had a shovel in their hands or a callus on their fingers. And Rep. Pete DeFazio (D-OR), who said in January that Summers "hates infrastructure," offered another no-holds-barred take last night.

In an interview with MSNBC's Ed Schultz (viewable above), DeFazio confirmed that House Democrats are discussing plans to spend unused money from Washington's $750 billion Wall Street bailout on job-creation programs, including infrastructure. But Summers and Treasury Secretary Tim Geithner are set against the idea, DeFazio added.

"Unfortunately, the president has an adviser from Wall Street, Larry Summers, and an adviser from Wall Street, Timmy Geithner, who don't like that idea," the Oregonian lawmaker told Schultz.

"They want to keep the money [because] there may be more needs on Wall Street, or maybe we should use it to pay down the deficit."

DeFazio went on to hint that progressive Democrats in the House are discussing a formal suggestion that Geithner and Summers be removed from their posts: "We may have to sacrifice just two more jobs to get millions back for Americans."

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Friday Video: Get Thee To Ghent

The Belgian city banned cars from its inner core in 2017 — and it's working!

April 4, 2025

Friday’s Headlines Hit the Brakes

New administrations often reverse policies, but rarely do they go after money already allocated like the Trump administration is doing, Grist reports.

April 4, 2025

US DOT Doesn’t Want to Fund Road Diets Anymore

One of America's largest road safety programs will look "unfavorably" on applications that reduce lane capacity for vehicles – even in urban areas where there's nowhere else to build bike lanes, sidewalk extension, and other sorely-needed infrastructure.

April 3, 2025

Talking Headways Podcast: Planning Connections in Panther City

Fort Worth's Kelly Porter on the city's city’s history, incredible growth and Texas high-speed rail.

April 3, 2025

Thursday’s Headlines Ask for Privacy

Under the Elon Musk administration, private investment might be the only way forward for intercity rail, but it's not as if such ventures have it easy.

April 3, 2025
See all posts