GOP Leaders React to Obama's Speech

Further, given this eye-popping deficit number that we're looking at, I think we ought to give serious consideration to making the assistance to the states a loan instead of a grant. We know there are at least two states that have indicated they don't need the number, and there may be others who don't.

Given the kind of deficit figures that we're looking at here, it hardly makes sense to provide money to states that don't need it. And for those states who say they do, which I suspect will be most of them, the question is, what will make them spend it wisely?

We're clearly not interested in seeing money spent on mob museums and water slides. The question is, how will the money be spent?

I think the way to make sure it's spent judiciously is to make it a loan. And we could provide the same kind of terms to the states that we've provided to the financial institutions in the financial rescue package in October, 5 percent over five years, 9 percent beyond that.

The final point I would make -- and I've discussed with Chairman Obey over in the House this matter, as well -- we do have nine appropriation bills that have already been vetted on a bipartisan basis that could be taken up and passed.

They wouldn't be completely without controversy, but they've already got bipartisan buy-in. And the annual appropriation bill does spend money more wisely than a continuing resolution, which is what we're under at the moment.