Obama is proposing to spend $12.2 million for the 2010-2011 school year to continue the program for about 1,700 kids. The official spoke on condition of anonymity because the proposal has not been made public.
The president would like to continue the funding until all the students participating in the program graduate from high school. He would not let new students into the program, the official said.
Obama plans to release his 2010 budget proposal in detail on Thursday.