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White House agrees to $6.5B more in budget cuts

By Jim Kuhnhenn

Associated Press

Published: Thursday, March 3 2011 11:40 p.m. MST

President Barack Obama signs the two-week funding bill averting a government shutdown in the Oval Office at the White House in Washington, Wednesday, March 2, 2011. The Senate on Wednesday sent President Barack Obama a Republican-drafted stopgap funding bill that trims $4 billion from the budget, completing hastily processed legislation designed to keep partisan divisions from forcing a government shutdown.

Charles Dharapak, Associated Press

WASHINGTON — The White House called for $6.5 billion in immediate spending cuts Thursday as negotiations opened with tea party-backed Republicans in Congress seeking reductions nearly 10 times as large in their drive to reduce the size of federal government.

"The conversation will continue," Vice President Joe Biden said in a one-sentence statement after an hour-long meeting with Speaker John Boehner, R-Ohio and other top congressional leaders in the Capitol.

Boehner's spokesman, Brendan Buck, said before the meeting that cuts of that magnitude were "little more than the status quo."

The talks, in Biden's private office just off the Senate floor, marked the beginning of an attempt by the White House and top lawmakers to agree on legislation to cut spending and avert a partial government shutdown when current funding authority expires on March 18.

The White House proposal amounted to an opening bid in what looms as a politically defining set of talks. Polling shows widespread support for spending cuts, but much of the enthusiasm vanishes when reductions are specified as coming from aid to education, for example, or law enforcement at the nation's borders.

Republicans, their ranks swelled by 87 freshmen, passed legislation through the House calling for $61 billion in cuts, coupled with prohibitions on federal regulations proposed to take effect on several industries.

The White House has threatened to veto the measure, and Democrats have attacked it sharply as reckless. But until the meeting, neither had proposed any specific cuts of their own for the current fiscal year.

In addition to Boehner, Senate Majority Leader Harry Reid, D-Nev., attended the talks, as did House Democratic leader Nancy Pelosi of California and Senate GOP leader Mitch McConnell of Kentucky.

While the threat of a government shutdown looms over the negotiations, Obama and leading lawmakers have stressed repeatedly they do not want one. For the time being, the government is operating under a two-week spending bill that the president signed into law on Wednesday. It included $4 billion in cuts — included at the insistence of Republicans.

Those already enacted cuts were easy-to-pick fruit. Thursday's White House proposal also represents some of the easiest cuts to make, coming mostly from proposals in Obama's budgets.

Few of the proposed cuts are new ideas. Some $4.2 billion of them represent proposals included in both the House Republican measure and Obama's budgets, according to information supplied by a participant in the meeting who spoke on condition of anonymity because the meeting was private.

The White House's suggested cuts include more than $1 billion in Environmental Protection Agency grants to states that mostly go for clean water projects. There's also $500 million in grants to state and local police departments, and $425 million in Federal Emergency Management Agency grants to state and local governments for homeland security and disaster preparedness. Both are accounts heavily "earmarked" by lawmakers for back-home pet projects.

The White House list also would cut $280 million for a new rail tunnel under the Hudson River that New Jersey Gov. Chris Christie has cancelled, $275 million cut from a program subsidizing community service jobs for low-income senior citizens, and $500 million in rescissions of unneeded money from a program providing food aid to low-income pregnant women and children under the age of 5.

"We're willing to cut further if we can find common ground on a budget that we think reduces spending in the right way while protecting our investments in education, innovation and research," said White House economic adviser Gene Sperling.

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