Obama Addresses Criticism on Stimulus Spending

U.S. PRESIDENT BARACK OBAMA:

I intend to keep my promise.

JEFFREY BROWN:

Nearly six months to the day he first visited Elkhart, Indiana, one of the cities hardest hit by the recession, President Obama returned, this time to tout the success of his stimulus plan.

BARACK OBAMA:

It is great to be back in Indiana.

JEFFREY BROWN:

Mr. Obama spoke at the Navistar R.V. factory in nearby Wakarusa, about 100 miles east of Chicago. The area is known as the capital of recreational vehicles, but as gas prices rose and the economy bottomed out, Elkhart's unemployment soared. It's now nearing 17 percent, much higher than the national average and a 10 percent rise from the year before.

BARACK OBAMA:

This area has been hit with a perfect storm of economic troubles. The Elkhart area has experienced the second-greatest increase in the rate of unemployment in the country, up 10 points in a year. It's an astonishing statistic. And there have been times where nearly 1 in 5 people in this area have been looking for work.

JEFFREY BROWN:

Today, amid a continuing debate over the effectiveness of the stimulus money so far, the president unveiled new grants that he said can help rebuild the economy in Elkhart and around the country.

BARACK OBAMA:

That's why innovation is more important than ever.

JEFFREY BROWN:

Mr. Obama announced a $2.4 billion investment in electric vehicles and advanced batteries.

BARACK OBAMA:

With these investments, we're planting the seeds of progress for our country and good-paying, private-sector jobs for the American people. Right here in Elkhart County, Navistar, which has taken over two Monaco Coach manufacturing facilities, will receive a $39 million grant to build 400 advanced battery electric trucks with a range of 100 miles, like the trucks here today.

You know, just a few months ago, folks thought that these factories might be closed for good, but now they're coming back to life.

JEFFREY BROWN:

It's one small part of the administration's $787 billion American Recovery and Reinvestment Act, the largest domestic spending effort in U.S. history.

BARACK OBAMA:

Indiana is the second-largest recipient of grant funding, and it's a perfect example of what this will mean.

JEFFREY BROWN:

The city of Elkhart has already been promised some $14 million in federal stimulus money, for improving roads, an airport runway and a sewage treatment plant.

U.S. VICE PRESIDENT JOSEPH BIDEN:

We also need to have a vision.

JEFFREY BROWN:

Vice President Biden was also on the road today, defending the stimulus plan, part of an overall effort by the administration this week that's included cabinet officials.

And we take a closer look now at some of the stimulus spending and where the money's going. Michael Grabell is the lead reporter covering the stimulus beat for ProPublica, an independent, nonprofit news Web site that features original and investigative reporting.

Welcome to you.

MICHAEL GRABELL, ProPublica:

Thank you.