Nov 13, 2009 10:55 AM by Andrew Taylor

Obama eyes domestic spending freeze

The White House has told domestic agencies to assume their budgets will be frozen or even cut by 5 percent as it signals a big push to take on the deficit next year.

It's part of a White House drive to stem the flood of red ink after a year of stimulus spending aimed at boosting the economy.

As record deficits continue, White House budget director Peter Orszag said Friday it's imperative to start curbing the flow of red ink in coming years so as not to erode the fledgling economic recovery. But Orszag says it's a balancing act and that acting too fast could undercut the recovery.

Democratic officials say options include caps on the amount of money Congress gets to distribute each year for agency budgets.


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