Sunday, July 31, 2011

Proposed U.S. Debt Deal Will Cut $750 Billion From Defense Over 10 Years

Debt Deal Is Close, But Defense Cuts A Sticking Point -- McClatchy News

WASHINGTON -- White House and congressional negotiators were close to a last-minute deal Sunday to cut trillions of dollars in future federal spending while raising the nation's debt ceiling, but an agreement remained agonizingly elusive.

"We're hopeful and confident it can be done," said Senate Majority Leader Harry Reid, D-Nev., who signed off on a deal subject to approval of his caucus. Virtually all other key players were said to be close to agreeing.

But House Speaker John Boehner, R-Ohio, did not approve a deal, reportedly because he was concerned that defense spending could be cut too much.

Read more ....

Update: Reid Backs Debt Deal; Defense Cuts Still in Debate -- New York Times

My Comment: The key paragraph is the following ....

-A 12-member, bipartisan legislative committee to recommend further spending cuts, with the goal to come up with $1.5 trillion. If it fell short, the rest would be made up with automatic spending cuts, about half from defense and the rest from non-defense programs. Social Security, Medicare and veterans benefits would be exempt.

In short .... $750 billion in cuts from defense over 10 years.

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