Obama announces $450 billion jobs plan to jolt U.S. economy

U.S. President Barack Obama is challenging the U.S. Congress to quickly pass his plan to create jobs and try to keep America’s economy from slipping back into recession.

In his plan, state governments would get $85 billion to rebuild roads, re-hire police, firefighters and teachers, and modernize schools.

To appease Republicans, there is a payroll tax cut of 50 per cent.

The proposed package comes just days after a report showed no new jobs were created in August, and amid a shaky U.S. economy.

Obama hasn’t said yet how he would pay for his jobs plan. It’s expected to be a mix of tax hikes and cuts to Medicare and Medicaid.