WASHINGTON, Jan. 25 (UPI) -- U.S. President Barack Obama will propose a partial spending freeze in domestic programs in his State of the Union address, administration officials said Monday.
Obama will call for a three-year freeze on some programs, followed by limiting spending increases after that to the rate of inflation, officials told The New York Times and other news agencies Monday. The sources said the freeze is meant to demonstrate the administration is serious about getting deficit spending under control.
The freeze would apply to agencies and programs -- including air traffic control, farm subsidies, education, nutrition and national parks -- for which Congress authorizes specific funding from year to year. It would not cover Pentagon spending or funding for foreign aid, veterans programs or homeland security budgets -- and it would exempt Medicare, Medicaid and Social Security.
The freeze under consideration would save about $250 billion during a span of 10 years, during which Washington is projected to accumulate $9 trillion to $10 trillion in new debt, the Times said.
Administration officials told the newspaper the domestic programs selected for the proposed spending freeze represent about one-sixth over the overall federal budget.
The freeze could not take effect with agreement from the House and Senate.