The demonstrators held large signs, chanted loudly and blew whistles as they marched through the streets of downtown Los Angeles to the steps of City Hall.
The plan was proposed by the president last month, but all Senate Republicans and Some Democrats rejected it when it came up for a vote.
President Obama has since broken up the plan into smaller pieces, hoping to get at least some portions of it passed.
His first proposal includes aid for states to help teachers, firefighters and police officers keep their jobs.
"There is something there for everyone and the bottom line is that doing nothing gets us nowhere," said SEIU member Wyatt Closs.
Once they arrived at City Hall, SEIU members held a candlelight vigil and about 50 of them planned to camp out overnight with the Occupy LA protesters.
On Tuesday, hundreds of Occupy LA protesters headed to the Los Angeles Unified School District headquarters to protest budget cuts