Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Streetsblog Capitol Hill

White House to Agencies: Prepare for Broad Spending Freeze or 5% Cut

Congressional deficit anxiety, always running high amid conservative Democrats, is reaching something of a fever pitch this week -- while the White House prepares to ask most federal agencies for two alternative budgets for the fiscal year that begins next fall: one that freezes spending and one with a 5 percent cut.

dot14_point.jpgU.S. DOT headquarters (Photo: Capitol Riverfront)

The Wall Street Journal has the details, as part of a larger report on the Obama administration's internal debate over whether to set aside unspent financial bailout money for deficit reduction:

The White House is in the early stages of considering what biggermoves it might make for next year's budget. The Office of Managementand Budget has asked all cabinet agencies, except defense and veteransaffairs, to prepare two budget proposals for fiscal 2011, which beginsOct 1, 2010. One would freeze spending at current levels. The otherwould cut spending by 5%.

OMB is also reviewing a host of tax changes. The President'sEconomic Recovery Advisory Board will submit tax-policy options by Dec.5, including simplifying the tax code and revamping the corporate taxcode.

Matt Yglesias tackles the political motivations behind the administration's efforts to project fiscal hawkishness while weighing new initiatives to combat rising joblessness ("without increasing the deficit"). But the signals of coming budget austerity at non-military federal agencies is another huge story in itself, and one that's bound to have significant implications for transportation policy.

The U.S. DOT made a budget request of $73.2 billion for fiscal year (FY) 2010, which began in October, compared with $68.2 billion during the final year of the Bush administration (FY 2009) and $70.3 billion in FY 2008. According to that data, a 5 percent cut would leave the agency's request above its FY 2009 level.

Once budget requests are forwarded to Capitol Hill, lawmakers get the final word on setting agency spending levels. But the administration's move -- which comes as more states face budget crises and find themselves at risk of losing federal matching funds for transportation -- suggests that a spending freeze may indeed be the best case scenario.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Wednesday’s Headlines Are the Best of the Best

What does it take to turn the tide against the dominance of cars? These cities are an example.

October 8, 2025

This Newsroom Is Looking For Its Next Big Tip on the Train

Investigative journalists at ProPublica are betting that the next big tipster is riding the rails right now — and reaching out to find them.

October 8, 2025

Ending the Roadless Rule is Bad News for Public Lands

Federal officials want to bring more cars to public lands, causing environmental damage in the process.

October 8, 2025

The Shocking Untold History of America’s Rails-to-Trails Movement

Some of the fiercest battles for the future of public space in America have happened on abandoned railway corridors — and the battles aren't over yet.

October 7, 2025

Tuesday’s Headlines Take It Back

Withholding transit funds is just one aspect of the Trump administration's campaign to reshape the federal bureaucracy during the shutdown.

October 7, 2025

Commentary: Speed Cameras are a Good Start for Safe Streets

But *all* tools must be used to achieve Vision Zero —  not just speed cameras.

October 6, 2025
See all posts