Vimarsa Walic blog

Though lawmakers may have tentatively agreed to the largest domestic spending reduction in U.S. history, they now must delve into the details to decide which programs to cut to meet their $33 billion target.

One day after Republican and Democratic leaders agreed on the outlines of a budget deal that could avert a looming government shutdown, they jockeyed on Thursday to protect areas where they fear it will do the most harm.

"What we cut is much more important than how we cut," Senate Democratic Leader Harry Reid said.

Staffers met shortly after Reid spoke to fill in the blanks on the agreement, which would settle a months-long battle over government spending and provide a final funding structure for the current fiscal year, which is already halfway over.

No matter the shape of the agreement, it would represent a big victory for Republicans, who have vowed to scale back the size of government. They will get further opportunities in the coming months as Congress faces a vote to raise the $14.3 trillion debt ceiling and begins work on a budget for the next fiscal year, which starts on October 1.

The final size of the spending cut will depend on how it takes shape, as Republicans hope to include funding restrictions that would prevent President Barack Obama from pursuing some top priorities.

"There's no agreement on numbers" yet, House Speaker John Boehner said at a news conference.

A cut of $33 billion this fiscal year could mean severe pain for many domestic agencies. But it would do little to plug a budget deficit that is projected to hit $1.4 trillion this year.

The government has been operating on a temporary extension of last year's budget for the past six months, but that arrangement expires on April 8.

The Democratic-led Senate and the Republican-controlled House of Representatives must act before then to avert a government shutdown. Boehner may encounter resistance from newly elected lawmakers affiliated with the grassroots Tea Party movement who have shown little appetite for compromise.

Boehner said he is "not very interested" in a budget deal that would abandon conservative lawmakers.

TEA PARTY RALLY

The Tea Party group plan a rally on the Capitol grounds later in the day.

Republicans have pushed for sharp spending cuts to fulfill a campaign promise and begin closing budget deficits that have hovered around 10 percent of gross domestic product in recent years. Democrats say that cutting spending too suddenly could hurt the shaky economic recovery.

Republicans have passed a spending bill out of the House that would impose immediate cuts averaging 25 percent on nearly every aspect of the government's nonmilitary operations, from food-safety inspections to tax enforcement.

It also would prevent President Barack Obama from carrying out many of his top priorities by denying funds for healthcare reform and greenhouse-gas regulation.

Many of those funding restrictions are a nonstarter for Obama and his fellow Democrats, though some of the less restrictive measures will likely make it into the final bill.

Obama wants education, scientific research and other programs that lead to long-term economic growth to be spared.

On Thursday, Reid said that programs that help children, retirees and working families should be protected. He mentioned the Head Start preschool program, which would face a 28 percent cut under the Republican plan. Advocates say that would cut off aid to 200,000 children.

"There's only so much that the middle class in this country can take," Reid said on the Senate floor.

Democrats hope to steer some cuts toward programs like crop subsidies that normally lie beyond the reach of the annual budget process. Republicans suspect those cuts may amount to budget gimmickry that will not lead to actual savings.

Senate Republicans are expected to unveil a measure that would amend the U.S. Constitution to require a balanced federal budget each year. It is not expected to become law but could provide leverage in upcoming budget fights.

(Editing by Deborah Charles)