President-elect Barack Obama and congressional Democrats will likely inherit responsibility for the second half of the $700 billion financial rescue package.

The move would allow congressional Democrats to dodge questions over whether to block a request for an additional $350 billion from the Bush White House, but would place the onus on Democrats for how the second half of the package is used.

“What’s been rattling around is, maybe the Treasury wouldn’t ask for the additional money,” said Verdier, whose members want to secure money from the bailout bill.

Late Monday afternoon, Treasury Secretary Henry Paulson told The Wall Street Journal he did not plan to use the remaining funds. Paulson said he wanted to preserve “the firepower” of the additional funds for those who come after the present administration.

Privately, Democratic leaders are said to welcome not having to deal with a request by the administration for more money.

“If they go that route and try to make it Obama’s ‘problem,’ I don’t think you’ll get much objection to that here,” said a senior Democratic aide.

These developments took place amid moves Monday by lawmakers across the political spectrum to curtail the White House’s power over the remaining funds.

“The second $350 billion must not be spent in the same way,” Sen. Bernie Sanders (I-Vt.) said in a statement Monday as he offered legislation to block the release of those funds. “The administration’s plans as to how the money should be spent appear to be changing on a daily basis.”

Others looked to this week’s lame-duck session to change the terms of the bailout package. “The lame-duck session of Congress offers us a tremendous opportunity to change course,” said Sen. James Inhofe (R-Okla.). “We should take it.”

Paulson and Federal Reserve Chairman Ben Bernanke met with Speaker Nancy Pelosi (D-Calif.) and other Democratic leaders late Monday afternoon, and they are set to testify this morning before the House Financial Services Committee alongside Sheila Bair, the chairwoman of the Federal Deposit Insurance Corporation.

Still, events may force Treasury to request the additional $350 billion. With 10 weeks to go before Barack Obama takes office, markets remain volatile. On Monday, Citigroup announced it would lay off roughly 50,000 employees in the coming months.

Paulson has allocated roughly $290 billion of the initial $350 billion in financial rescue money, and has discussed wide-ranging plans to support several new types of financial markets.

There will be pressure on the administration to spend the remaining $60 billion. Lobbyists for community banks, among other groups,  are working to carve out help from that remaining pot of money.

A request by the White House for the rest of the money would set off a complex and confusing legislative tug-of-war – assuming that Congress does not approve legislation this week explicitly curtailing the funds.

It’s a process that a number of lobbyists and lawyers closely following the Troubled Asset Recovery Program (TARP) acknowledged they are unclear about.

To gain access to the final $350 billion, the legislation requires the president to submit a detailed written plan.

If Congress is in session, lawmakers would have to pass a joint resolution by majority vote within 15 days of receiving the report specifically cutting off access to the funds. Otherwise, the administration would automatically be granted access.