Obama Emphasizes Education, Job Creation in Federal Budget

President Obama is finally taking aim at the country's double-digit unemployment with an aggressive spending plan aimed at helping to restore at least some of the 7.2 million jobs shed in the past two years, reports Business Week.

The $3.83 trillion federal budget he passed on to Congress Monday brings the country's deficit to a record-breaking $1.56 trillion, but also includes a spending freeze on some non-essential government programs.

Obama has been criticized for not doing enough to spur job creation and this budget seems to address those concerns. It includes a $100 billion jobs measure that provides tax breaks to encourage businesses to boost hiring.

"Having steered the economy back from the brink of a depression, the administration is committed to moving the nation from a recession to recovery by sparking job creation to get millions of Americans back to work," the administration said in a written statement, according to Business Week.

Certain areas of government spending remain unaffected by the spending freeze, including the military, veterans, homeland security, Social Security and Medicare.

Not surprisingly, the middle class seem to benefit the most from the proposed budget. Families making $250,000 and more a year will see their taxes increased, as Bush administration tax cuts of 2001 and 2003 expire at the end of this year. The administration expects to raise $678 billion over the next decade thanks to additional revenue from those taxes.

Meanwhile, those who are less well off will see tax breaks of $400 per individual and $800 per couple through 2011, under an extension of the Making Work Pay program. It was set to expire this year.

The budget also includes support for all levels of education from elementary school through college, including the largest funding increase in the history of the Elementary and Secondary Education Act, a $3 billion increase to $28 billion plus an additional $1 billion if Congress agrees to some major changes in the law. The Pell Grant college tuition program will double to just under $35 billion.

Of course, it remains to be seen just how much of Obama's proposed budget will make it past Congress. It's likely to face some fierce opposition along the way. Regardless, it's definitely good news that the administration is finally putting some hard money into job creation with 10 percent of Americans looking for work.

Here's hoping he can get the ball rolling quickly.

Photo courtesy of peasap via Flickr.