State Of The Union

Obama To Back Spending Freeze

Eric Kleefeld | January 25, 2011, 1:09PM

President Barack Obama

President Obama will be making a move towards fiscal austerity in tonight's State of the Union.

Obama will call for a five-year freeze on non-security discretionary spending, according to an administration official. The administration will also look for further cuts and efficiencies in areas outside the freeze, such as Defense Secretary Robert Gates's plan to save $78 billion in the defense budget.

As ABC News pointed out, from the news: "The FY 2011 budget was $3.8 trillion; $1.415 trillion of which was discretionary spending. The president's proposal would save, according to estimates, roughly $400 billion."

Jim DeMint

Congress Sets Stage For Major Spending Showdown In December

Brian Beutler | September 30, 2010, 10:51AM

The Tea Party Caucus after its initial meeting on July 21

Democrats and Republicans are prepared for a big fight over spending next year if the balance of power on Capitol Hill changes hands. Some are even forecasting a government shutdown. But that fight could actually come earlier than anybody expected, particularly if Republicans make huge gains in November. As Congress adjourns for elections season they've set the stage for a tussle over spending this year.

Late last night, Sen. Jim DeMint (R-SC) lost a little-noticed vote on government spending. In a hurry to hit the campaign trail, members of Congress left Washington without passing annual spending bills to keep the government running. Instead, Congress passed temporary legislation to keep the lights on temporarily -- until December 3, to be precise. To DeMint, this was a direct affront -- a ploy by Democrats to force a spending fight before newly elected members of Congress, mostly Republicans, are sworn in. He wanted Congress to keep the lights on until January, so the new Congress could make its own spending decisions.

His legislation failed, setting the stage for a loud political fight this fall.

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House Republicans

Slash and Privatize: How House GOP's Shadow Budget Eliminates Deficit ... In About 50 Years

Christina Bellantoni | February 4, 2010, 9:26AM

Rep. Mike Pence (R-IN), Rep. John Boehner (R-OH), and Rep. Eric Cantor (R-VA)

President Obama has read it, and the detailed plan is the only thing the Republicans have so far, but it seems like Rep. Paul Ryan is out there on his own with a budget blueprint that cuts the deficit by slashing Social Security and Medicare benefits and by creating private accounts and a voucher system.

The talk about Social Security changes that would essentially amount to privatization of the entitlement plan raised eyebrows earlier this week - and even prompted some in the GOP to back away - but it's right there in black-and-white in Ryan's formal budget plan released last week.

The official line from House Republican leadership is that Ryan's budget is not the GOP alternative. Leadership aides pointed TPMDC to last year's far less specific budget proposal and stressed their plan will be presented during floor debate that is likely to happen this spring. Ryan, the ranking Republican on the House Budget Committee, will write that plan too.

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Spending

White House Insists Spending Freeze Not A 'Hatchet'

Christina Bellantoni | January 26, 2010, 3:22PM

President Obama and Sen. John McCain (R-AZ).

When the White House announced President Obama's new plan to freeze discretionary non-security spending at 2010 levels for the next three years, Republicans fired up the way-back machine to say it was the same idea Obama criticized when his presidential rival Sen. John McCain pitched it last year.

Similar idea, but not quite the same, administration aides insist.

At the time, Obama mocked McCain during their debates as applying a "hatchet" where a "scalpel" was the better choice. Obama aides said today they are indeed using a scalpel by not proposing an across the board cut of all government spending, and since they have made the decision with careful consideration.

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