According to Mr Summers, the so-called 'mini-stimulus' is required to continue the movement of the US economy out of a "very deep valley".
He stated that the money would be used to help stimulate growth and this would be the best way of improving America's fiscal position.
"I cannot agree with those who suggest that it somehow threatens the future to provide truly temporary, high-bang-for-the-buck jobs and growth measures," Mr Summers remarked.
The funding would go towards initiatives such as extending unemployment insurance, increasing educational spending and providing a greater number of loans to small businesses.
Earlier this year, President Obama outlined his plans to transfer $30 billion worth of funding initially allocated to the bank bailout program to a new fund designed to provide additional loans to small firms.
By Gary Cooper