White House issues fiscal policy statement

WASHINGTON, July 15 (UPI) -- The Obama administration said Wednesday it backs a House bill allocating money for financial services and the general operation of the U.S. federal government.

"America's economic strength depends, in part, on a strong financial system with effective, impartial regulation that enforces the rules of the road and protects investors and consumers of all sizes," said the Office of Management and Budget statement outlining administration policy in H.R. 3170 for the fiscal year ending Sept. 30, 2010.

President Barack Obama has proposed new resources for several federal regulators, including the Securities and Exchange Commission, the Federal Trade Commission the Consumer Products Safety Commission.

Administration officials also appreciated the bill's commitment to fund efforts to identify fraud and reinforce program integrity, the OMB said.

The OMB also recognized initiatives in the appropriations bill such as:

-- Community Development Financial Institutions, which includes an $80 million requested to implement the Capital Magnet Fund.

-- Alcohol and Tobacco Tax & Trade Bureau funding, which the administration urged Congress to fund by authorizing the bureau to collect licensing and registration fees from alcohol producers, wholesalers and retailers.

-- Executive Office of the President, for which the bill recommends consolidating budgets of the White House Office and the Office of Policy Development, and funding provided to the Office of Administration to create efficiencies.

The statement said the White House objected to bill language that would try to restore Chrysler LLC and General Motors Co. franchise agreements.

"The administration shares the committee's concern for dealers affected by Chrysler and GM bankruptcy agreements and has taken steps to help support viable dealerships during this transition," the OMB said. "However, the decision by Chrysler and GM to rationalize their dealer networks was a critical part of their overall restructuring to achieve long-term viability ... ."