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<p style="font-size:xx-small;"> The White House budget office is recalculating how to apply automatic spending
cuts for a handful of agencies, freeing up almost $4 billion for
the Pentagon and another $1 billion or so for Homeland Security Department
and NASA.Capitol Hill aides familiar with the White House changes say the
administration has identified almost $5 billion in cuts that can be restored
under its reading of the arcane budget rules governing the across-the-board
cuts, known as sequestration. The calculations would restore $5 billion
of the scheduled $85 billion in automatic sequestration cuts.An administration
official confirmed the calculations Friday but declined to comment further
because the process is ongoing. The official and congressional aides spoke
on condition of anonymity because they were not authorized to discuss the
changes publicly.The move comes amid increasing public pressure to find
ways to lessen the impact of sequestration. Federal agencies are warning
that the mandatory cuts could mean cutbacks in services. Last week, Congress
passed and President Obama signed legislation giving the Federal Aviation
Administration the ability to avoid furloughs that were causing flight delays
by tapping money in other accounts.The cuts officially began in March after
Congress and Obama could not reach an agreement on a broader budget
deal. The automatic cuts had been imposed under a hard-fought 2011 debt
and budget pact.The cuts have so far failed to live
uch better than in the previous quarter.
Economists worry, though, that federal spending cuts and higher Social Security
taxes could hurt the economy. And new requirements under the federal health
care law may be causing some small and midsize companies to hold
back on hiring.The Associated Press contributed to this report.April 11,
2013: Kathie Maiello of Any-Time Home Care, left, talks with Jashod Chaney
of Albany at the Dr. King Career Fair at the Empire State
Plaza Convention Center, in Albany, N.Y.
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