Federal Agencies Brace for Deep Cuts Post-’Cliff’

Toby Jorrin/AFP/Getty Images
With the “fiscal cliff” quickly approaching, federal agencies are stepping up preparations for deep automatic budget cuts that will kick in Jan. 2 unless the White House and Congress can reach a deal.
The Office of Management and Budget told ABC News that a memo went out to federal agencies earlier this week seeking “additional information and analysis” in order to finalize spending cuts required if we go off the cliff.
The agencies are considering which workers to furlough, projects to put on hold and offices that will have to close.
The request follows the administration’s release of a 400-page report in September that outlined the budget areas to be impacted by the $1.2 trillion in automatic spending cuts and what percentages they would be slashed.
READ MORE: White House Details ‘Doomsday’ Budget Cuts
Billions of dollars could be slashed from defense operations and maintenance programs. Medicare would take a two-percent hit, trimming millions in payouts to health care providers. Scientific research programs would be gutted. Aid for the poor and needy would be sharply curtailed.
The report also detailed operations that would be exempt from any cuts, including active-duty military operations, nuclear watchdogs, homeland security officials, veterans care and other critical areas.
READ: Pentagon Begins Planning for ‘Cliff’ Cuts
Asked about the agency preparations underway, White House spokesman Jay Carney said Wednesday that OMB “must take certain steps to ensure the administration is ready to issue such an order should Congress fail to act.”
“Earlier this week, OMB issued a request to federal agencies for additional information to finalize calculations on the spending reductions that would be required,” Carney said.
“This action should not be read … as a change in the administration’s commitment to reach an agreement and avoid sequestration. OMB is simply ensuring that the administration is prepared, should it become necessary to issue such an order,” he said. “OMB will continue to consult with agencies and will provide additional guidance as needed. This is just acting responsibly because of the potential for this happening.”
Get more pure politics at ABCNews.com/Politics and a lighter take on the news at OTUSNews.com.
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The buck stops at the Presidency. He is the Chief Executive Officer and he is responsible.
Posted by: Perplexed | December 7, 2012, 4:56 pm 4:56 pm
Hold fast President Obama. Every minute that goes by brightens the light on House Republicans and their allegiance to Grover Norquist instead of the United States of America. No amount of double speak can conceal their disdain for the Middle Class and the working poor. We know who will be responsible for the Congressional Republicans actions – time to clean HOUSE.
Posted by: Stew | December 7, 2012, 5:35 pm 5:35 pm
Posted by: Stew | December 7, 2012, 5:35 pm 5:35 pm
You’re getting a lot poorer soon. Can’t wait. Forward!
Posted by: Joe | December 7, 2012, 5:39 pm 5:39 pm
No amount of double speak can conceal their disdain for the Middle Class and the working poor.
Posted by: Stew | December 7, 2012, 5:35 pm 5:35 pm
Under Obama, middle class incomes have dropped $4,300 per year and American net worth dropped 40 percent, the lowest level in two decades. Approximately 23.4 percent of families have no savings at all, up from 18.5 percent in 2009. The number of Americans receiving food stamps has increased from 31.9 million to 46.7 million, a 46 percent increase. 97.3 million Americans now qualify as low income and another 49.1 million are in poverty; together 146.4 million Americans or 48 percent of the population are low-income or in poverty, a record.
Posted by: Forward! | December 7, 2012, 5:43 pm 5:43 pm
Speaker Boehner! It’s so easy! Just put up for a vote in the House a bill: middle-class tax-cuts. That’s all. No top-two-brackets tax-cuts. No cutting back spending cuts. No extending tax deductions. Just middle-class tax-relief. Let’s see Barack Hussein veto that, PUMA!
Posted by: Cuomocrat for Rubio | December 7, 2012, 6:03 pm 6:03 pm
Posted by: Forward! | December 7, 2012, 5:43 pm 5:43 pm
You got it wrong.
Out of the Bush economic crisis of 2008, middle class incomes have dropped $4,300 per year and American net worth dropped 40 percent, the lowest level in two decades. Approximately 23.4 percent of families have no savings at all, up from 18.5 percent in 2009. The number of Americans receiving food stamps has increased from 31.9 million to 46.7 million, a 46 percent increase. 97.3 million Americans now qualify as low income and another 49.1 million are in poverty; together 146.4 million Americans or 48 percent of the population are low-income or in poverty, a record.
Fortunately, under Obama’s policies the stock market has regained all of its losses from Bush, Americans have regained most of their investment savings, the housing market is beginning to come back, American exports and manufacturing have increased, the auto companies are making record profits, corporations and businesses have been making record profits, 5.5 million more jobs, the GDP has been positive for three years, . .. and so on.
Posted by: Bonnie | December 7, 2012, 6:06 pm 6:06 pm
I happen to be okay with the Fiscal Cliff Fall, let it happen and enjoy the holidays everyone. But remember next time to vote Democrat so we can save the middle class. I know I will.
Posted by: Razr | December 7, 2012, 11:08 pm 11:08 pm
Dismantling the military budget just as Jihadis are going nuclear and taking-back Central Asia and Africa, well that seems like appeasement, surrender, collaboration. Perhaps Democrats lack the guts to understand what they’ve become.
Posted by: Peikoviani | December 7, 2012, 11:26 pm 11:26 pm
Posted by: Razr | December 7, 2012, 11:08 pm 11:08 pm
There’s concrete evidence that income inequality INCREASED under Obama. The top 1% has done better under Obama than under Bush. The working poor and middle class have done considerably worse. More of the middle class have joined the ranks of the poor under Obama than any other president. Fifteen million more are on food stamps now compared to 2009. Minorities have been hit especially hard. The National Urban League stated that African-Americans and Hispanics have lost 30 YEARS of economic gains under Obama. Those groups might never recover.
But don’t let facts get in the way of your denial.
Forward!
Posted by: Joe | December 7, 2012, 11:27 pm 11:27 pm
Fire the Liars!
Posted by: Civil Rights Violated as US Govt. Contractor | December 7, 2012, 11:31 pm 11:31 pm
Fortunately, under Obama’s policies the stock market has regained all of its losses from Bush, Americans have regained most of their investment savings, the housing market is beginning to come back, American exports and manufacturing have increased, the auto companies are making record profits, corporations and businesses have been making record profits, 5.5 million more jobs, the GDP has been positive for three years, . .. and so on.
Posted by: Bonnie | December 7, 2012, 6:06 pm 6:06 pm
And yet middle class income losses, government dependence, and poverty are the highest on record. And you’re still unemployed and dependent on taxpayers to survive. Weird.
Posted by: Bill | December 7, 2012, 11:32 pm 11:32 pm
Especially the Law Enforcement Liars! (Keep the good guy(s) though).
Posted by: Civil Rights Violated as US Govt. Contractor | December 7, 2012, 11:33 pm 11:33 pm
End the Fed? Close the budget. Send Timmy back to Goldman.
Posted by: Civil Rights Violated as US Govt. Contractor | December 7, 2012, 11:35 pm 11:35 pm
Fire the unqualified, entitled, dishonest blowhard, hired preferentially as a VET;; hire me as a CIVILIAN employee (qualified, honest, resourceful, flexible, creative, and effective, communicator). Forward, off the cliff!!!
Posted by: Civil Rights Violated as US Govt. Contractor | December 7, 2012, 11:44 pm 11:44 pm
Look at the “pure” hatred on the face of the guy in the middle. Boehner has allowed his personal feelings to affect even his ability to hold the good of the nation ahead of his politics.
Posted by: JLS1950 | December 7, 2012, 11:54 pm 11:54 pm
Obama seems to get enjoyment in the economic issues. I believe he wants America to fail.
Posted by: Allie | December 8, 2012, 12:04 am 12:04 am
It’s this administration that does not care about the middle class and it shows.
Posted by: Allie | December 8, 2012, 12:06 am 12:06 am
Fortunately, under Obama’s policies the stock market has regained all of its losses from Bush, Americans have regained most of their investment savings, the housing market is beginning to come back, American exports and manufacturing have increased, the auto companies are making record profits, corporations and businesses have been making record profits, 5.5 million more jobs, the GDP has been positive for three years, . .. and so on.
Posted by: Bonnie | December 7, 2012, 6:06 pm 6:06 pm
MINNEAPOLIS (WCCO) – Officials with the Salvation Army say they’re seeing a record number of families asking for help this holiday season.
Nearly 18,000 families have registered for Christmas assistance in the last month. That number has grown by 2,500 since last year, breaking the 2009 record.
Posted by: Forward! | December 8, 2012, 12:12 am 12:12 am
I can’t believe people are willing to go over the “financial cliff” instead of doing the one thing that could change everything – KICK OUT ILLEGAL ALIENS! This country spends $200 BILLION dollars a year on them, and that doesn’t take into account wages lost by Americans that should be holding the jobs that ILLEGAL ALIENS hold!
And just remember – BOzo made it legal for over a million of them to compete for jobs!
Posted by: TexasGal1970 | December 8, 2012, 12:39 am 12:39 am
Notice no mention of cutting foreign aid or eliminating aid to illegal aliens like Obama’s aunt and uncle.
No mention of eliminating $2 billion we send to Pakistan every year for their military and similar amounts to other countries that hate us.
No mention of the money we spend trying to fight other people’s wars.
No mention of the cost of the UN and Nato.
No mention of cutting anything that will not affect the American people.
It seems that our government wants to take care of everyone but our citizens.
Posted by: oonogil | December 8, 2012, 12:48 am 12:48 am
We wouldn’t be having to cut this deep if Obama didn’t go on such a radical spending spree his last 4 years. According to a March 2012 report from CBS News:
(CBS News) The National Debt has now increased more during President Obama’s three years and two months in office than it did during 8 years of the George W. Bush presidency.
The Debt rose $4.899 trillion during the two terms of the Bush presidency. It has now gone up $4.939 trillion since President Obama took office.
The latest posting from the Bureau of Public Debt at the Treasury Department shows the National Debt now stands at $15.566 trillion. It was $10.626 trillion on President Bush’s last day in office, which coincided with President Obama’s first day.
The National Debt also now exceeds 100% of the nation’s Gross Domestic Product, the total value of goods and services.
Mr. Obama has been quick to blame his predecessor for the soaring Debt, saying Mr. Bush paid for two wars and a Medicare prescription drug program with borrowed funds.
The federal budget sent to Congress last month by Mr. Obama, projects the National Debt will continue to rise as far as the eye can see. The budget shows the Debt hitting $16.3 trillion in 2012, $17.5 trillion in 2013 and $25.9 trillion in 2022.
If Mr. Obama wins re-election, and his budget projections prove accurate, the National Debt will top $20 trillion in 2016, the final year of his second term. That would mean the Debt increased by 87 percent, or $9.34 trillion, during his two terms.
Posted by: EPU | December 8, 2012, 1:02 am 1:02 am
The food stamp rolls increased by over 607,000 in September to 47.71 million, yet another all-time record. That’s awful enough, but here’s the real kicker: the participation figure for July, the last month of data available before Election Day, was revised up by over 150,000, changing that month’s reported increase from 11,600 to just under 166,000. No other month’s data was revised except August, where the changes were infinitesimal.
Posted by: Surprise! | December 8, 2012, 1:13 am 1:13 am
One could take the broader view regarding tightening the belt and living within our means and that is that we show the world and especially Greece, Spain and other European countries how its done. Become responsible and quit handing out money on frivolous enterprises saving it, instead, for useful purposes.
Posted by: John Locke | December 8, 2012, 2:18 am 2:18 am
Flat Tax.
Posted by: CommonSense | December 8, 2012, 2:54 am 2:54 am
Flat tax without most deductions (and/or with deductions capped) might be rather interesting, there, commonsense. But you would have to do something very similar at the state and local level across the country also.
Posted by: JLS1950 | December 8, 2012, 3:44 am 3:44 am
No, ALLIE, it is the Republicans who want America to fail so that they can try to blame the Democrats and say “See? Told you!” This is all part of the NeoCon/PNAC plan that started with a “new Pearl Harbor” – that doesn’t remind you of anything, I suppose. If Obama had wanted America to fail, he would onl have had to do nothing. Instead, he has so far broght both Wall Street and employment back to at least near their leverls before the 2008 melt-down. Your comment is rather like saying that firefighter who just put out a house fire and minimized damage really want(ed) to burn it to the ground: it is rude, arrogant and disrespectful.
Posted by: JLS1950 | December 8, 2012, 3:51 am 3:51 am
If people would read the Constitution they would know that the House is responsible for taxing and spending. The President cannot spend a dime unless it is appropriated.
If the government fails to balance a budget or fails to pay its bills then Congress is to blame, specifically, the House, more specifically, the Republicans.
Posted by: FranklinBasil | December 8, 2012, 4:13 am 4:13 am
True Franklin , but the president has the final say with the veto pen and he submits a budget to Congress for discussion , ( with probable revision(s) and subsequent approval ( or rejection ) , not a rubber stamp ( like the Bush2 Rs did ) . That is why the buck truly does stop @ 1600 Penn. Ave. . The president has submitted a budget for FY 2013 , and the House has rejected it and sent their own proposal , which the president has rejected . US political theater 101 . Time for some compromise from the right , else they are going to get a rude awakening next elections…
Posted by: davem | December 8, 2012, 4:31 am 4:31 am
The republicans learned nothing from the last election.They have been high jacked by the tea party and just do not have the balls to stand up to them.What I find very strange is. How can you have a political party within a political party ?
Posted by: abraham lincoln1 | December 8, 2012, 4:46 am 4:46 am
Oh by the way the republicans are also afraid of Grover Norquist. I think he has some dirt on them and is black mailing them. How can elected republican members of congress answer to one man. What is that about? It certainly is not democracy, when one man tells 200 members of congress what to do instead of the people who elected them.
Posted by: abraham lincoln1 | December 8, 2012, 4:57 am 4:57 am
Bonnie said, “I happen to be okay with the Fiscal Cliff Fall, let it happen and enjoy the holidays everyone. But remember next time to vote Democrat so we can save the middle class. I know I will.”
The Dems are just as much at fault for our debt as the Republicans neither care for the middle class they are all upper class. Every time they increase government they take our money for their programs. Limited government ,smaller, more efficient government that seems to be a pipe dream. And I will remember in the next election.
It seems the only way to cut spending is this fisacal clift. It stinks to high heaven but so be it!
Posted by: Jack Young | December 8, 2012, 7:00 am 7:00 am
How worried do you think Obama will be while on his $4 million taxpayer vacation in Hawaii? He will be gone from Washington D.C. during the fiscal cliff plunge. How worried will all of you unemployed people be trying to give your children a Christmas while Malia and Sasha are romping on the beach? How naive all of you are that Obama really cares about the middle class or any other class. Hold out your hand and he will give you crumbs while basking in the Hawaiian sun.
Posted by: jonnie | December 8, 2012, 7:14 am 7:14 am
I don’t recognize my country any longer
Posted by: Rick | December 8, 2012, 7:21 am 7:21 am
I love all the ignoramuses blaming it on Obama. 74% of those in this week’s CNN poll blame the GOP, which is essentially holding the lower 98% hostage so they can maintain much lower than normal taxes for those who most strongly benefited from the way the U.S. economy is rigged.
Posted by: The_Mick | December 8, 2012, 8:25 am 8:25 am
The important number is 98%, which is the amount of DNA that Democrats share with a chimp.
GWB overspent, BHO overspends. GWB mismanaged Central Asian wars, BHO abandons Central Asia to Jihadists while praising their takeover of Africa and watching Iran go nuclear. Cutting US military funding at this time is a disaster. GWB = demon, BHO = angel? Propaganda.
Posted by: Peikoviani | December 8, 2012, 8:34 am 8:34 am
Deep cuts have o come from the only place they can come from……the huge expansion of government, and of course, the military.
Posted by: Rick McDaniel | December 8, 2012, 8:40 am 8:40 am
This once great nation has been reduced to a shell of its former self thanks to Obummer and the democrats.
Posted by: greg | December 8, 2012, 9:05 am 9:05 am
LS, who is the rac*st? Your “gettins”? How about loving our country so much that you want it (not one group) to succeed? Our society is in serious decline because too many citizens/groups want THEIR “gettins.” We have become a lazy, immoral, rude, crude, lawless society–that’s what happens when we have tribal thinking.
Posted by: jonnie | December 8, 2012, 9:09 am 9:09 am
I think its great that obama is ignoring the republicans and refusing to even nogotiate. Thats the sign of a strong leader. I don’t want them to hire someone in the government trying to force me to take a job. I am happy with my handouts, thank you very much! Those evil rich people make too much anyway.
Posted by: dem_without_a_clue | December 8, 2012, 9:09 am 9:09 am
Boehner has offered Obama the same amount of money by closing loopholes–which was what Obama said he wanted in July 25,2012–THE EXACT SAME PLAN!!!! So it sounds like Obama is getting exactly what he was asking for so. OBAMA IS A VERY SMALL PETTY PETTY MAN–NOT A LEADER– HE CAN NOT COMPROMISE!!
Government workers work one month less than private sector workers, get retirement plan paid and earn more than most private sector jobs!!! So what is the big deal—-THE TAXPAYER PAYS THE SALARY OF THESE GOVERNMENT WORKERS–SO YOU CAN PAY FOR YOUR OWN RETIREMENT AND THEIR RETIREMENT ALL WHILE MAKING LESS MONEY!!!!
Posted by: werallslaves100 | December 8, 2012, 9:12 am 9:12 am
The Dems want the press to continue to scare people by telling them that Social Security and education spending will be cut. What ever happened to Obama’s promise 4 years ago to go through the budget with a scalpel and cut all unnecessary spendng? Don’t we still have several federal agencies responsible for salmon, each depending on where the salmon is? Gutting maintenance programs is shortsighted. Getting rid of unnecessary departments, consolidating agencies, cutting or revising inefficient regulations, reducing the size of the federal government – these are all things that the Dems should be working with the GOP to do. When families run into financial difficulties, they don’t demand raises from their employers – they cut everything that isnt absolutely necessary. It’s about time Congress approaches things the same way.
Posted by: Pat | December 8, 2012, 9:22 am 9:22 am
Wake up America! Don’t you think that it’s a bit premature to force deep cuts to Social Security , Medicare, and Medicaid, while our Government is still handing out billions of tax payer dollars to other governments. And we should eliminate all legislative earmarks, before we cut key programs that will force millions of people into more desperate financial and healthcare situations. If we can’t provide affordable healthcare for Americans, we sure as hell don’t need a Space Station, or another moon rocket, so let’s shut down NASA first. I’ll gladly agree with the Republicans on cutting spending, but I wan’t a national discussion on the priorities first. It’s clear to me the Republicans want to pay for the deficit they created by raiding other programs. My answer to them is NO WAY. I pay into social security, and medicare for the benefit of Americans. How dare you take that money now and do with it what ever you want. That’s unacceptable.
Posted by: Eric | December 8, 2012, 9:31 am 9:31 am
the_mick wrote:” 74% of those in this week’s CNN poll blame the GOP, which is essentially holding the lower 98% hostage so they can maintain much lower than normal taxes for those who most strongly benefited from the way the U.S. economy is rigged.”
.
President Empty Chair had some of his favorite little lap dog poodles over the White House for a private conversation on how to sell the propaganda on the so-called fiscal cliff negotiations. We see that reflected in these “polls”, but most of them could not even tell you what the so-called cliff is. But it’s working to take the focus off oBama’s failure as CIC in Benghazi and the absolute failure of his 4 years of economic policies.
Posted by: Michelle Shu Jas | December 8, 2012, 9:48 am 9:48 am
franklinbasic wrote:”If people would read the Constitution they would know that the House is responsible for taxing and spending. The President cannot spend a dime unless it is appropriated.”
.
So who exactly exploded the federal spending in 2008 and 2009?
Posted by: Michelle Shu Jas | December 8, 2012, 9:54 am 9:54 am
Do the billions of dollas we shell out as aid to other countries like Israel, Afghanistan, etc. also considered as part of this “fiscal cliff” talks? We borrow money from China to give to other countries, and yet we are willing to tax or starve our own citizens. That is insane.
Posted by: RomneyWillLose | December 8, 2012, 9:55 am 9:55 am
pat wrote:” Getting rid of unnecessary departments, consolidating agencies, cutting or revising inefficient regulations, reducing the size of the federal government – these are all things that the Dems should be working with the GOP to do.”
.
Won’t happen. This is the DEMOCRATs ONLY way to create jobs. Government jobs. They have not, can not, and will not create anything in the private sector… unless of course it belongs to one of their little cronies like George Kaiser.
Posted by: Michelle Shu Jas | December 8, 2012, 10:04 am 10:04 am
____”But it’s working to take the focus off oBama’s failure as CIC in Benghazi and the absolute failure of his 4 years of economic policies.”
POSTED BY: MICHELLE SHU JAS | DECEMBER 8, 2012, 9:48 AM 9:48 AM____________In the English language, proper nouns begin with a capital letter.
Posted by: RomneyWillLose | December 8, 2012, 10:29 am 10:29 am
romneywilllose wrote:”In the English language, proper nouns begin with a capital letter.”
.
President Empty Chair begins with capital letters…. even though there is nothing proper about him.
Posted by: Michelle Shu Jas | December 8, 2012, 10:33 am 10:33 am
Clearly, Obama haters operate much more on emotion than on either logic or facts. A little reference to facts shows that Republicans have been sabotaging this country for political-economic purposes AT LEAST since the late 1970′s. They seem to have learned a great deal from Tricky Dick, and have tuned their “performances” to avoid his prideful pitfalls. Read the works of the PNAC and of other “conservative” groups and “leaders”, and understand their real motives.
Posted by: JLS1950 | December 8, 2012, 1:47 pm 1:47 pm