President Obama ordered the start of $85 billion in government spending cuts on March 1, beginning a potentially decade-long wave of belt-tightening that risks curbing U.S. economic growth this year. The across-the-board cuts, known as sequestration, were part of a 2011 deficit-reduction agreement and were intended to be so onerous that Congress and the president wouldn’t let them occur. Instead, Democrats and Republicans deadlocked on an alternative.
Defense Secretary Chuck Hagel’s proposed reductions in military compensation, such as housing allowances, amount to only about 10 percent of cuts being sought over the next five years, the No. 2 U.S. military official said.
U.S. Defense Secretary Chuck Hagel outlined a five-year Pentagon budget proposal that calls for retiring older weapons, limiting military compensation and shrinking the Army, moves that will be resisted by lawmakers.
President Barack Obama will propose a 1 percent pay increase for federal civilian workers and military personnel in the fiscal 2015 budget set for release on March 4, the administration said in a statement.