WASHINGTON — Look for cuts in high-speed rail, community-development projects and other social programs from the spending reduction agreement between the White House and Congress.
Some of the cuts are already in effect, and Congress will vote on the rest later in the week.
And that could be only the beginning. More dramatic reductions may be coming, as President Barack Obama and Republicans in the House escalate their battle this week over how to slash government debt.
Obama plans to speak about his long-term plans Wednesday afternoon at George Washington University, while House Republicans are expected to debate and vote on their very different budget blueprint on Thursday or Friday.
“Obviously, you can expect that the president is feeling some pressure to do something given the changing climate,” said David M. Walker, a former U.S. comptroller general who now leads a group promoting fiscal responsibility.
Now that the fight over short-term spending is nearly over, Walker said, the White House sees “the increasing frustration among the American public.”
“They know the debt ceiling limit debate is coming up,” he said. “I think the president feels the need to step out” and show Americans he is trying to do something about out-of-control spending.
White House officials Monday declined to speculate on potential changes to Medicare, Medicaid, Social Security and tax policy or on the dollar amounts of spending cuts. Nor would they say whether Obama’s speech would offer specifics beyond the broad themes he has been addressing for months.
White House press secretary Jay Carney said Obama will very clearly lay out his vision for reducing the debt and deficit, expected to hit a record $1.65 trillion this fiscal year, and that his policies would be “balanced” and “bipartisan.”
Chances are that any long-term spending cuts could wind up as part of legislation to raise the nation’s $14.3 trillion debt ceiling, which could be reached next month.
With the White House now sensing a protracted fight with some Republicans over the debt ceiling, Obama, through Carney, also said Monday that he had erred as a senator in 2006 when he voted to oppose a higher debt limit.
“Obama regrets that vote and thinks it was a mistake,” Carney said. “He realizes now that raising the debt ceiling is so important to the health of this economy and the global economy that it’s not a vote that, even when you are protesting an administration’s policies, you can play around with.”
Obama’s speech this week comes at a time when Republicans are largely driving the budget agenda. The drama is unfolding in three chapters:
Shrinking current spending. House GOP leaders wanted $40 billion in cuts over the rest of the fiscal year, which ends Sept. 30, while Democrats sought $33 billion.
Negotiators agreed to ax $38.5 billion.
The House is expected to vote on the accord Wednesday, with the Senate to follow Thursday. The plan is expected to cut billions from labor, education, health and human services, State Department and foreign operations programs; the final numbers are still being worked out.
Quick passage is expected, although a number of liberals and conservatives are unhappy.
Sealing the budget deal. Because lawmakers need a few days to write legislation containing the precise details of their agreement, Obama on Saturday signed legislation to keep the government open through Thursday.
That plan includes $2 billion in cuts. The community-development fund, which includes grants for neighborhood projects, would be reduced. So would funding for transportation planning, research and development, as well as money for high speed and intercity passenger rail.
The long-term plan. Once the short- term issues are dealt with, the bigger fight begins in earnest.
The House’s 10-year proposal, likely to be debated and voted on Thursday and Friday, would cut $6.2 trillion from anticipated spending over the next 10 years.
The fight over cuts, though, could become part of the debt-limit fight. Republicans say they’ll insist on major cuts before they’ll go along with a higher debt, while Obama doesn’t want the debt-limit decision linked to other conditions.
