The Senate voted down a proposed bipartisan commission to force changes in fiscal policy yesterday, according to the New York Times. The commission was intended to stabilize long-term deficits and debt. However, President Obama plans to call for the creation of a similar group during his State of the Union address tonight. He will argue that changes are necessary because as growth in programs like Medicare and Social Security threaten to vastly outstrip federal revenue in the future.
The president’s second proposal: a three-year freeze on discretionary spending on domestic programs. The freeze would not include entitlements such as Medicare, Medicaid and Social Security. With his plan, Obama aims to save $250 billion over ten years.
Some federal agencies are uncertain about the proposal’s impact on their funding, according to today’s Washington Post. Liberal detractors say that the freeze will have a negligible effect on the deficit, while putting progressive energy and infrastructure programs at risk. The White House, meanwhile, maintains that some programs would still be targeted for growth.
Also in today’s entitlements news:
Obama to Tout Jobs Push (WSJ)
Lawmakers Cold on Obama’s Freeze (The Hill)
