Obama budget envisions $2.9 trillion in 10-year deficit reduction

The budget would boost spending to $4.1 trillion for 2017, up $196 billion from fiscal 2016, while raising revenues by $308 over the same period, according to documents released by the White House. Spending increases are spread across a wide range of programs, from new support for community colleges to helping NATO and other European allies resist "Russian aggression".

The budget also proposes $375 billion in new 10-year savings to federal healthcare programs, including several changes to the Medicare program for seniors. These include new competitive bidding requirements for the Medicare Advantage Program, certain co-payments for home health episodes, and new mandates for pricing rebates for name-brand drugs.

(This version of the story corrects figure in headline to '$2.9 trillion')

(Reporting By David Lawder; Editing by Chizu Nomiyama)