Obama to propose huge infrastructure plan

US President Barack Obama unveils plans Monday to spend at least 50 billion dollars to expand and renew US roads, railways and airports, in a fresh bid to fire up sluggish economic growth.

Obama, under intense pressure over November's mid-term congressional elections in which his Democrats fear heavy losses, was set to make the announcement in a speech in Wisconsin, an official said.

The event, marking Labor Day, the traditional kick off date for US election campaigns, heralds a week in which Obama travels to another struggling midwestern state, Ohio, and holds a press conference in a bid to shore up his political position.

A White House official said that the "bold" infrastructure plan will be front loaded and make significant investments in the first year, in a bid to stimulate the sagging economy and boost jobs growth.

It appeared unlikely however that Obama could get the plan passed through Congress before the mid-term elections.

Opposition Republicans who slammed Obama's 800 billion dollar stimulus plan as a failure are also likely to hammer the proposed new investment as another example of the government doling out taxpayer dollars to little effect.

On Wednesday, Obama is expected to unveil another plank of his revised economic strategy, a series of tax breaks for small businesses worth 100 billion dollars.

The official, speaking on condition of anonymity, said the Obama plan would frontload 50 billion dollars of investment to jumpstart job creation.

The administration would work with Congress to offset the spending in other areas, to ensure it does not further inflate the budget deficit, the official said.

The plan also targets improvements to the US air traffic control system and an acceleration of high speed rail projects, and establishes an Infrastructure Bank to coordinate federal funding and planning for projects.

Critics have long complained that the US highways system is crumbling and suffersfrom under investment, so Obama will target modernizations which could put unemployed workers quickly to work on the US transportation backbone.

The White House official also said on the condition of anonymity that Obama would also propose making a major new investment in the rail and transit system, including an overhaul of the creaking Amtrak rail fleet.

The plan also envisages an overhaul of technology used in the crowded US air traffic control system, including the use of satellite surveillance, which it said could reduce travel delays and reduce airport noise.