WASHINGTON — President Obama will propose in his State of the Union address a package of modest initiatives intended to help middle-class families, including tax credits for child care, caps on some student loan payments and a requirement that companies let workers save automatically for retirement, senior administration officials said Sunday.
By focusing on what one White House official calls “the sandwich generation” — struggling families squeezed between sending their children to college and caring for elderly parents — Mr. Obama hopes to use his speech on Wednesday to demonstrate that he understands the economic pain of ordinary Americans. The proposals also include expanded tax credits for retirement savings and money for programs to help families care for elderly relatives.
The address is still being written, but one senior official, describing it on the condition of anonymity, said its main themes would include “creating good jobs, addressing the deficit, helping the middle class and changing Washington.”
With his poll numbers down and Democrats fearing disaster in this year’s midterm elections, Mr. Obama is at a particularly rocky point in his presidency and has been shifting his rhetoric lately to adopt a more populist tone. He heads into his first formal State of the Union speech in a radically reshaped political climate from even one week ago.
His top domestic priority, a health care overhaul, is in jeopardy after the Republican victory in last week’s Massachusetts Senate race — a setback that White House advisers interpret as a reflection of Americans’ deep anger and frustration over high unemployment and Wall Street bailouts.
One advantage of the president’s proposals is that they might appeal to people who are struggling financially without looking like the kind of broad expansion of the federal government that is making many Americans uneasy. They also would add little to the federal deficit at a time when Mr. Obama is pledging to reduce it.