STATE OF THE UNION

Obama to Announce Spending Freeze

Will unveil three-year, non-military budget freeze.

President Obama plans to announce a three-year spending freeze on discretionary, non-military funds, Politico reports, continuing the president’s public-relations offensive leading up to his State of the Union address Wednesday. The State of the Union announcement is likely intended to blunt the populist backlash to the soaring deficit and $787 billion stimulus bill. Spending for government agencies, from the Treasury to Health and Human Services, would not rise from their 2010 levels in 2011, 2012, and 2013, and after three years the total spent on those programs (about a sixth of the total budget) would be the lowest as percentage of the economy in 50 years. Exempt programs include Medicaid, Social Security, foreign aid, and all military and Pentagon spending. On Monday, Obama also outlined a plan to help middle-class families, including a vast increase to the Child and Dependent Care Tax Credit, and there’s speculation he will announce a decision on Don’t Ask, Don’t Tell.