Obama presents fine points of trim, $3.6T budget

ByABC News
May 7, 2009, 5:21 PM

WASHINGTON -- President Obama laid out the details of his $3.6 trillion budget for 2010 Thursday while calling special attention to $17 billion that's not there.

The president chose to highlight 121 programs that he wants to eliminate or reduce, representing less than one-half of 1% of the budget. More than half of the savings would be in defense; about 20% are in domestic programs also targeted by former President George W. Bush.

The effort to turn attention to fiscal austerity follows a three-month period in which Obama signed a $787 billion economic stimulus package and a $410 billion spending bill to complete the 2009 budget. The stimulus package includes funding for flood prevention and wastewater treatment programs Obama now says should be eliminated.

His 1,374-page budget for 2010 includes more than $1.2 trillion in funds that must be appropriated by Congress, including big increases in health care, energy and education. The contrast between the proposed new spending and reductions produced derision from Republican critics.

"It's like taking a teaspoon of water out of a bathtub while you keep the spigot on at full speed, and the bathtub continues to fill up," said Sen. Judd Gregg, R-N.H., who Obama tried earlier this year to nominate as Commerce secretary.

Among the biggest winners in the budget are programs that target environmental protection, housing, veterans and foreign aid. Defense will grow 4%, while domestic spending will grow about 7%.

Among the biggest losers in Obama's target list of 121 programs are many that include congressional earmarks, or specific projects that lawmakers can tout in their states and districts. However, Obama did not try to eliminate about 9,000 earmarks from the $410 billion spending bill he signed in March.

The White House had considered sending Congress a list of suggested cuts to this year's budget money that would be saved immediately if Congress went along but has not done so yet. Budget director Peter Orszag said such a rescissions package still could be proposed "if that's a course that we choose to pursue."