House Republicans and Democrats reached a deal on the US budget last Saturday, cutting it close to the deadline that would have forced the government to shut down. A stop-gap spending bill was passed, allowing the government to run while a new budget plan is finalized. The parties agreed to slash approximately $38bn (£23bn) for the year until 30 September.
More than half of the $38 billion in spending cuts that lawmakers agreed to last week would affect education, labour and health programmes.
According to The Washington Post, the bill would cut US contributions to the United Nations and international organisations by $377m, and to international banks and financial institutions by $130m.
President Obama said it was the “the biggest annual spending cut in history”.
Obama is scheduled to give his deficit-reduction plan on Wednesday and according to officials, his speech will set new long-term deficit-reduction goals, and establish a radically different version than a Republican proposal that aims to cut more than $5tr over the next decade.
Poll findings from The Washington Post and CNN have found that the majority of Americans are frustrated with Obama and Congress now more than ever because of the budget cuts.
This is just another battle in the works for Obama, especially now that he’s running again for 2012 and the situation has the makings of a serious blow to the presidency. Granted, Obama has made the best of a bad situation; however the American people are looking to him now more than ever to fulfil his campaign promises.