White House details fiscal cliff spending cuts

Under pressure from Congress, the Obama administration on Friday detailed for the first time how more than $100 billion in spending cuts slated for January will ripple out across thousands of federal programs and projects.

The White House budget office, in a report mandated by Congress, said the cuts “would have a devastating impact on important defense and nondefense programs.”

As a result of the so-called sequester, deficits would be reduced by nearly $1 trillion over 10 years. At the same time, economists say it could help push the country back into recession by abruptly pulling so much money out of the economy.

Cuts in domestic spending would affect everything from government salaries and private-sector contracts to research, air traffic control, border patrol, food safety, the FBI, housing programs, food assistance, after-school programs and education grants, according to the report.

Via – CNNMoney


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