Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

'Scores' of cuts in Obama budget

By Charles Riley, staff reporter


NEW YORK (CNNMoney) -- President Obama's upcoming budget will propose cuts to "scores" of federal spending programs, according to the administration's budget chief.

Writing in the New York Times on Sunday, White House budget director Jacob Lew named three domestic programs he said were examples of the "tough calls" Obama is making.

Obama is set to submit his fiscal 2012 budget proposal to Congress a week from Monday, kicking off a months-long debate and negotiation with Congress over how to tame federal deficits. The 2011 deficit is expected to hit $1.5 trillion and mark the third consecutive year of trillion dollar gaps.

In his State of the Union address last month, Obama said he would propose a five-year freeze on non-security discretionary spending, a move that would save $400 billion.

"To achieve the deeper cuts needed to support this spending freeze, we have had to look beyond the obvious and cut spending for purposes we support," Lew said.

Obama's budget will slash a quarter of the government's funding for the Great Lakes Restoration Initiative, a move that will save $125 million.

It will also call for scaling back a community service grant program, and for cuts to a community development program that funds projects like housing, sewers and streets, and economic development. The two reductions will save around $650 million.

Lew said the three cuts are emblematic of the "scores of cuts the president had to choose." At the same time, he warned that certain areas of the budget should be off limits until the economy improves.

"We must take care to avoid indiscriminate cuts in areas critical to long-term growth like education, innovation and infrastructure -- cuts that would stifle the economy just as it begins to recover," Lew said. To top of page

Search for Jobs

Index Last Change % Change
Dow 20,775.60 32.60 0.16%
Nasdaq 5,860.63 -5.32 -0.09%
S&P 500 2,362.82 -2.56 -0.11%
Treasuries 2.42 -0.01 -0.37%
Data as of 12:34am ET
Company Price Change % Change
Bank of America Corp... 24.79 0.01 0.04%
Chesapeake Energy Co... 5.92 -0.16 -2.63%
Freeport-McMoRan Inc... 13.73 -0.40 -2.83%
General Electric Co 30.33 0.24 0.80%
Intel Corp 36.07 -0.45 -1.23%
Data as of Feb 22
Sponsors

Sections

Powerball jackpot tops $400 million, as change in the game to create longer odds against winning allows for more frequent big prizes. More

Trump supporters say they found deductibles and out-of-pocket costs under Obamacare to be unaffordable, according to a new Kaiser survey. More

Tesla said Wednesday it expects to 'finalize locations' this year for as many as three new Gigafactory locations. More

America's three biggest banks -- JPMorgan Chase, Bank of America and Wells Fargo -- earned over $6.4 billion last year from ATM and overdraft fees, according to an analysis by CNNMoney. More