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| US government spending cuts include $129m a year for embassy protection | US government spending cuts include $129m a year for embassy protection |
| (17 days later) | |
| The US government will slash spending targeted for the protection of embassies around the world as part of a $100bn program of automatic spending cuts set to be start this January if Congress can not find a compromise. | The US government will slash spending targeted for the protection of embassies around the world as part of a $100bn program of automatic spending cuts set to be start this January if Congress can not find a compromise. |
| The news comes after ambassador to Libya, Christopher Stevens, and three other Americans died following attacks the US consulate and a safe house refuge in Benghazi on Tuesday night. US embassies across the Muslim world are now being targeted by protesters angered by a video that denigrated the prophet Muhammad. | The news comes after ambassador to Libya, Christopher Stevens, and three other Americans died following attacks the US consulate and a safe house refuge in Benghazi on Tuesday night. US embassies across the Muslim world are now being targeted by protesters angered by a video that denigrated the prophet Muhammad. |
| According to a 400-page White House report released on Friday, automatic spending cuts to be made at the end of the year will include $129m a year earmarked for the next nine years to go to maintaining and protecting US embassies. | According to a 400-page White House report released on Friday, automatic spending cuts to be made at the end of the year will include $129m a year earmarked for the next nine years to go to maintaining and protecting US embassies. |
| The cuts are a small part of massive cuts to the military, air traffic control, the federal bureau of investigation, housing and social welfare programs, government salaries and private contracts that "would have a devastating impact on important defence and nondefence programs", according to the report from the White House budget office. Starting in January, some $54.7bn per year will be cut from defence spending and continuing for nine years. | The cuts are a small part of massive cuts to the military, air traffic control, the federal bureau of investigation, housing and social welfare programs, government salaries and private contracts that "would have a devastating impact on important defence and nondefence programs", according to the report from the White House budget office. Starting in January, some $54.7bn per year will be cut from defence spending and continuing for nine years. |
| The report details cuts for 1,200 separate budget line items. The White House said the spending cuts would total $984bn, and the government would spend $216bn less in interest payments on the federal debt. Salaries for military personnel and Medicare benefits are exempt, but the cuts will be felt across the board. | The report details cuts for 1,200 separate budget line items. The White House said the spending cuts would total $984bn, and the government would spend $216bn less in interest payments on the federal debt. Salaries for military personnel and Medicare benefits are exempt, but the cuts will be felt across the board. |
| Air force and navy aircraft procurement is set for a $4.2bn cut. Defence department operations and maintenance would lose $3.9bn. Pentagon healthcare would be cut by $3.3bn. The national institutes of health would lose $2.5bn. Rental assistance for the poor would be cut by $2.3bn, food safety and inspections would lose over $1bn. The FBI would lose $735m for salaries and expenses. | Air force and navy aircraft procurement is set for a $4.2bn cut. Defence department operations and maintenance would lose $3.9bn. Pentagon healthcare would be cut by $3.3bn. The national institutes of health would lose $2.5bn. Rental assistance for the poor would be cut by $2.3bn, food safety and inspections would lose over $1bn. The FBI would lose $735m for salaries and expenses. |
| The automatic cuts, called sequestration, were put in place in order to force an agreement between Republicans and Democrats on a deficit reduction plan following the debt-ceiling crisis of 2011. But a bipartisan "supercommitee" set up to negotiate a compromise collapsed, leaving sequestration in place. Half the cuts will come from defence spending and half to social programs and other non-military funding. | The automatic cuts, called sequestration, were put in place in order to force an agreement between Republicans and Democrats on a deficit reduction plan following the debt-ceiling crisis of 2011. But a bipartisan "supercommitee" set up to negotiate a compromise collapsed, leaving sequestration in place. Half the cuts will come from defence spending and half to social programs and other non-military funding. |
| "As the administration has made clear, no amount of planning can mitigate the effect of these cuts," the budget officer reported. "Sequestration is a blunt and indiscriminate instrument. It is not the responsible way for our nation to achieve deficit reduction." | "As the administration has made clear, no amount of planning can mitigate the effect of these cuts," the budget officer reported. "Sequestration is a blunt and indiscriminate instrument. It is not the responsible way for our nation to achieve deficit reduction." |
| The report calls the cuts "deeply destructive to national security, domestic investments, and core government functions". | The report calls the cuts "deeply destructive to national security, domestic investments, and core government functions". |
| The cuts will come at the same time as Bush-era tax cuts are set to expire, together the spending cuts and tax hikes have been dubbed the "fiscal cliff". | The cuts will come at the same time as Bush-era tax cuts are set to expire, together the spending cuts and tax hikes have been dubbed the "fiscal cliff". |
| On Thursday, Federal Reserve chairman Ben Bernanke said the fiscal cliff was a serious threat to the fragile US recovery. "If the fiscal cliff isn't addressed, as I've said, I don't think our tools are strong enough to offset the effects of a major fiscal shock so we'd have to think about what to do in that contingency," said Bernanke. "So I think it's really important for the fiscal policymakers to, you know, work together to try and find a solution for that." | On Thursday, Federal Reserve chairman Ben Bernanke said the fiscal cliff was a serious threat to the fragile US recovery. "If the fiscal cliff isn't addressed, as I've said, I don't think our tools are strong enough to offset the effects of a major fiscal shock so we'd have to think about what to do in that contingency," said Bernanke. "So I think it's really important for the fiscal policymakers to, you know, work together to try and find a solution for that." |
| Republicans and Democrats appear at a stalemate as the White House insists any deficit-reduction deal includes more taxes and many Republicans focus on cuts to social social programs and government spending. Republican House speaker John Boehner said this week that a compromise seemed unlikely. | Republicans and Democrats appear at a stalemate as the White House insists any deficit-reduction deal includes more taxes and many Republicans focus on cuts to social social programs and government spending. Republican House speaker John Boehner said this week that a compromise seemed unlikely. |
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