[Wolf Blitzer, Cnn Anchor:] And, to our viewers, you're in THE SITUATION ROOM. Happening now: President Obama puts America's mayors on notice. If they waste stimulus money, he's going to call them out. Plus, Governor No Thanks. A Republican rejects some of that stimulus money. Others may follow his lead. And a top Democrat calls it a slap at African-Americans. And the White House weighing in now on new calls for Senator Roland Burris of Illinois to resign. The Illinois governor has turned against him, and his aides are now jumping ship all that and the best political team on television. We want to welcome our viewers in the United States, and around the world. I'm Wolf Blitzer. You're in THE SITUATION ROOM. President Obama today laid down the law for the nation's mayors, who came to the White House with their hands wide open for stimulus dollars. Mr. Obama says he will have zero-tolerance policy for wasteful spending. He's trying to make good on another campaign promise heading into the second month of his presidency. Let's go to our White House correspondent, Dan Lothian. He's standing by with what happened today when the president invited all those mayors into the White House.
[Dan Lothian, Cnn White House Correspondent:] Well, Wolf, the president continues moving at a rapid pace as he tries to jump-start the economy. And what we noticed today, he's still stressing the importance of accountability and transparency.
[Lothian:] One month in office, and the Obama administration is patting itself on the back.
[Barack Obama, President Of The United States:] We've done more in 30 days to advance the cause of health care reform than this country has done in a decade.
[Joseph Biden, Vice President Of The United States:] We've won passage of the largest economic recovery effort since World War II in a month. In a month.
[Lothian:] Speaking in the East Room to the nation's mayors, the president put them on notice. When it comes to spending stimulus money from his biggest initiative, waste, inefficiency and fraud will not be tolerated.
[Obama:] I will call them out on it and use the full power of my office and our administration to stop it.
[Lothian:] The threat of being called out didn't appear to rattle these mayors.
[Mayor Manny Diaz , Miami:] We get called out every day at the local level.
[Unidentified Male:] Every day.
[Diaz:] We have plenty of constituents who will be doing that before the president does.
[Mayor Douglas Palmer , Trenton:] We welcome that kind of accountability.
[Lothian:] As the mayors get ready to spend their share of $787 billion on shovel-ready projects, a new CNNOpinion Research poll shows 60 percent of Americans support the stimulus and 49 percent consider it a major victory for the president. But it's not just one big love-fest. At least two Republican governors, Sanford of South Carolina and Jindal of Louisiana, are threatening to turn down stimulus aid, calling it bad for the economy. That complicates things for local communities since the state has to hand out the money. New Orleans Mayor Ray Nagin says his governor's rhetoric is nothing but politics.
[Mayor Ray Nagin , New Orleans:] I think he's been tapped as the up-and-coming Republican to potentially run for president the next time it goes around, so he has a certain vernacular and a certain way he needs to talk right now.
[Lothian:] The president still finding Republican resistance, even when it comes to handing out federal dollars. Now, looking ahead to next week, the president continues to keep the pedal to the metal, if you will. He addresses a joint session of Congress and unveils the federal budget and holds a fiscal responsibility summit. He's also, Wolf, planning another road trip.
[Blitzer:] He's going to be a very busy guy, obviously. All right, Dan, thank you. Unlike America's mayors, some Republican governors are not eager to claim their share of the stimulus money. And the ranking African- American in the House of Representatives sees it as an insult to blacks. Our national political correspondent, Jessica Yellin, is here watching this, what's going on. Are GOP governors, Jessica, right now really going to reject money that potentially could help their states?
[Jessica Yellin, Cnn Congressional Correspondent:] Wolf, it's hard to believe that if you were offered billions of dollars, you would even think twice about accepting it. But that's where Louisiana's governor, Bobby Jindal, is, along with five other Republican governors. They say that the short-term funds from the stimulus will eventually try up, leaving their states with new long-term costs they simply can't afford. Here's how Louisiana's Governor Jindal put it.
[Gov. Bobby Jindal , Louisiana:] We will have to review each program and each new dollar to make sure that we understand, what are the conditions, what are the strings, and see whether it's beneficial for Louisiana to use those dollars.
[Yellin:] He's already announced that he will reject about $98 million worth of funds for unemployment insurance which he says would eventually lead to a tax on business. But he's accepting money to increase unemployment benefits and funding for transportation improvements. The other states where governors are questioning whether they will take those funds, South Carolina, Mississippi, Idaho, Texas, and Alaska. Wolf, some politicians in those states are accusing those governors of playing politics.
[Blitzer:] And earlier we spoke with the highest-ranking African- American in the House of Representatives, Congressman James Clyburn of South Carolina. And he says, if these states reject that money, it will primarily affect low-income African-Americans. And he's outraged.
[Yellin:] That's right. He had extremely stinging words. And he says that his governor is willing to accept funds that help transportation throughout the state, for example, but, as you say, are questioning stimulus funds that would go to counties that are primarily African-American.
[Rep. James Clyburn , South Carolina:] now the governor says, I don't want to accept the money. That's why I called this an insult, that's why I said this is a slap in the face, because a majority of those counties are, in fact, inhabited by African-Americans.
[Yellin:] Now, his governor rejects that, saying that if they accept these funds, it will eventually lead to a future tax increase on all South Carolinians, regardless of their color. Now, it's important to note, Wolf, that state legislatures in each of these states have the power to override the governor's decisions if those governors reject the funds. So, this could be teeing up some huge political battles.
[Blitzer:] Yes. The congressman insists that, in South Carolina, that state legislature, he believes, will override Mark Sanford, the governor. We will see what happens. Jessica, thanks very much. Let's go back to Jack Cafferty. He has "The Cafferty File" Jack.
[Jack Cafferty, Cnn Anchor:] Yes, Jindal better run for president. He won't be reelected governor. I mean, Louisiana doesn't need any money, right? They got plenty of money down there.
[Blitzer:] They need a ton of money.
[Cafferty:] Yes, they do.
[Blitzer:] They're still suffering from Katrina.
[Cafferty:] Exactly. And the city of New Orleans couldn't be rebuilt with some of these infrastructure dollars, of course not. I never heard such nonsense in all my life. Mississippi, that's another state that was trashed by Katrina, and not exactly at the top of the per capita income list. That's nonsense. So, have you noticed, it's nearly impossible to wake up in the morning without hearing about another big-time bailout by the federal government? As President Obama signed that almost $790 billion stimulus bill, his treasury secretary, Tim Geithner, the week before unveiled a bank bailout plan. That could mean another $1 trillion spent on bailing out our nation's drowning financial institutions. That's on top of the $700 billion financial package from last fall. The auto companies are back knocking at the door. They were in Washington this week. They want another $21.6 billion that's GM and Chrysler of your money, on top of the more than $17 billion they got last fall. There's also the administration's $275 billion plan to help up to nine million struggling homeowners refinance or modify their mortgages, so they don't lose their homes. And if these dizzying numbers aren't enough to give you a headache, how about the fact that the stock market keeps tanking every time the government announces a new initiative? Yesterday, the Dow closed at its lowest level in more than six years. And today it took another hit, closing down 100 points. Investors are nervous the government is not going to be able to right our economic ship, despite the trillions of dollars it's pouring in, all of which has probably left millions of Americans either pulling their hair out or reaching for the Jack Daniels. So, we thought on this Friday evening we would ask you the following. What are the signs that you're suffering from bailout fatigue? Go to CNN.comcaffertyfile. Post a comment on my blog. If this was the "Letterman" show, they would have the top 10 indications. But we don't have the writers or the imagination to do that.
[Blitzer:] You could come up with that. You're very you're creative. You can do this. Jack, stand by. It's one thing for a political enemy to want your ouster, but entirely different when a friend does.
[Gov. Pat Quinn , Illinois:] I would ask my good friend Senator Roland Burris to put the interests of the people of the land of Lincoln first and foremost, ahead of his own, and step aside and resign from his office.
[Blitzer:] The Democratic governor of Illinois turning his back on the Democratic senator from Illinois, Roland Burris. And we have just learned a man from Burris' inner circle is flat-out walking away from the senator. The billionaire accused in that investment fraud was found in an unlikely place. And now his father has a special message. And what happens when she works after he gets fired? Some women are becoming the main breadwinners in this miserable economy. Stick around. You're in THE SITUATION ROOM.