Republicans say the nation needs to tighten its belt but the White House disagrees.
The Obama team says it's time to invest in the future or face even tougher times.
On the auction block in New York, more than two hundred homes due to foreclosures and for a fortunate few, an upside to an economy in a downward spiral.
In Washington, republican lawmakers are asking whether President Obama's ambitious agenda might make matters even worse.
Republican Senator Lindsay Graham says, "the budget is a radical, reckless exercise that's scaring the hell out of everybody who is watching this country's financial situation."
GOP lawmakers say the three and a half trillion dollar price tag is just too much, but the White House says it has to spend to create jobs.
"We are proposing a change in course in which we are not only fiscally responsible, but we're investing in education, we're investing in energy and we're investing in health care," says White House Budget Director, Peter Orszag.
The Senate will try to wrap up a fight on a 400-plus billion spending bill packed with pork projects. It was negotiated in the last days of the bush administration.
"Next year, we will be the starting pitcher and the game is going to be completely different," says Orszag.
Former rival John McCain says the president can and should intervene.
"It is not last year's business. It's money that's going to be spent as soon as the president signs the bill. He shouldn't sign it, he should veto it," says Republican Arizona Senator John McCain.
Meanwhile, President Obama is expected to begin his week by reversing his predecessor's ban on federal funding for Embryonic Stem Cell research.
The president is a step closer to his promise to wind down the Iraq War. Twelve thousand troops are reportedly heading home in the next six months.