WASHINGTON (AFP) - President Barack Obama's administration warned Sunday of a fight with Congress to reinstate billions in aid to states as frenzied debate over a mammoth economic stimulus bill neared a climax. Obama himself was set to return to barnstorming campaign mode Monday in a bid to rally Americans behind the stimulus package, and roll out a revamped bank bailout Tuesday to attack the underpinnings of the financial crisis. National Economic Council director Larry Summers said the new-look Troubled Asset Relief Program (TARP) would prise open credit markets and include at least 50 billion dollars to shore up the paralysed housing market. With the Senate expected Tuesday to vote on its version of the economic stimulus bill, now worth at least 800 billion dollars, Summers cried foul over Republicans' elimination of roughly 40 billion in assistance to US states. "There's no question what we've got to do is go after support for education," he said on ABC program "This Week", after Republican pressure for more tax cuts stripped money largely intended for states' school budgets. "And there are huge problems facing state and local governments, and that could lead to a vicious cycle of layoffs, falling home values, lower property taxes, more layoffs. And we've got to prevent that," Summers warned. "So we're going to have to try to come together in the conference. And the president is certainly going to be active in sharing his views as that process goes on." Whatever bill emerges from the Senate will have to be reconciled with an 820-billion-dollar version passed already by the Democratic-led House of Representatives, which devoted more to infrastructure and less to tax cuts. Asked if Obama's deadline of February 16 to sign the bill could still be met, Summers said on "Fox News Sunday": "It's not about this hour or that hour. It's about getting this done as rapidly as possible for the American people." Obama was Monday to take his case directly to the people with an event in Indiana before his first presidential news conference, in prime-time, and then appear in Florida Tuesday. After appealing for bipartisan support, his tone has become much sharper as the stimulus bill has bogged down in the Senate, warning the Republicans that November's election was the final indictment of their economic philosophy. In a weekly broadcast Saturday, Obama welcomed signs of a tentative deal among lawmakers as the Senate held a rare weekend session following news Friday that the US economy shed a staggering 598,000 jobs in January. "Because if we don't move swiftly to put this plan in motion, our economic crisis could become a national catastrophe," the president said. But despite the outlines of a compromise by moderate Democrats and Republicans, senior opposition senators remained adamant that Obama's stimulus package would prove a gigantic waste of money. "We are going down a road to financial disaster. Everybody on the street in America understands that," Richard Shelby, the top Republican on the Senate's banking committee, told CNN. "This is not the right road to go. We'll pay dearly," he said, arguing that instead of stimulus spending, the Obama administration should make its priority the stricken financial sector. "Until we straighten out our banking system, until there is trust in our banking system, until there's investment there, this economy is going to continue to tank," the Alabama senator said. Summers said fixing the banking industry was indeed the goal of the next 350 billion dollars under the TARP scheme set to be announced by Treasury Secretary Timothy Geithner on Tuesday. Without going into details, the top White House adviser said the refashioned program would assist banks dispose of bad assets while promoting new lines of credit in a climate of greater transparency. "And absolutely critically, there will be support and pressure that assures that these needless foreclosures are avoided and that government is acting aggressively to contain the damage in the housing markets," he said.