WASHINGTON (AP) - President Barack Obama is proposing cuts to Social Security as an attempt to compromise with Republicans on the budget.
A senior administration official says the budget Obama will offer to Congress next Wednesday would reduce the deficit by $1.8 trillion over 10 years. It includes a revised inflation adjustment called "chained CPI" that would curb cost-of-living increases in Social Security and other benefit programs.
The senior administration official stressed it is not the president's preferred approach but a compromise proposal to try to reach a long-term budget deal. Obama first made the offer to House Speaker John Boehner last year.
The official spoke on a condition of anonymity since the budget has yet to be released. Technically, the administration actually would be limiting the growth of Social Security.
Besides the pain of deep defense cuts which could lay off some 8,000 defense workers, Missouri could lose nearly $12 million in education funding.
In Illinois, the defense cuts would furlough more than 14,000 defense department employees and cut more than $30 million from education.
Democrats have proposed a combination of tax increases and spending cuts, including a tax on income above $1 million and eliminating tax breaks for oil companies.
Republicans have said they will only consider spending cuts.
Democratic Congressman Bill Enyart of Belleville, told the St. Louis Post-Dispatch that the defense cuts would hit the area hard because of the importance of Scott Air Force Base and other military installations to the local economy.
Illinois Republican Representative John Shimkus told KSDK-TV that he doesn't believe a deal will be reached before the deadline.
The legislation temporarily suspends the $16.4 trillion limit on federal borrowing. Experts say that will allow the government to borrow about $450 billion to meet interest payments and other obligations.
The Senate gave the bill final approval last week and sent it to Obama, who signed it Monday shortly after returning from Minneapolis.
Democrats and Obama had warned that failure to pass the bill could set off financial panic and threaten the economic recovery.
The bill includes a provision attached by House Republicans that temporarily withholds lawmakers' pay in either chamber that fails to produce a budget plan.