It has been reported that during his State of the Union address President Obama will propose a three-year freeze on federal funding that is not related to national security. The freeze would take effect in October and limit the overall budget for agencies other than the military, veteran's affairs, homeland security and certain international programs to $447 billion a year for the remainder of Obama's first term.
The spending freeze would affect only about one-eighth of the nation's $3.5 trillion budget, the bulk of which is devoted to entitlement programs such as Social Security, Medicare and Medicaid, which are responsible for much of the future increase in spending. The proposed freeze would shave about $15 billion off next year's budget.
Tuesday morning, the Congressional Budget Office released a report forecasting a $1.35 trillion budget deficit for this year. Tuesday afternoon the U.S. Senate debated raising the nation's debt limit.