Federal Deficit, Federal Spending | featured news

It's an outrageous tale: The federal government spends one out of every $10 in transportation aid on wasteful projects such as refurbishing a giant roadside coffee pot and constructing turtle tunnels.

President Barack Obama is sending Congress a $3.73 trillion spending blueprint that pledges $1.1 trillion in deficit savings over the next decade through spending cuts and tax increases.

The proposed reductions fall short of the $100 billion in cuts Republicans campaigned for last fall but represent substantial hits to various programs including law enforcement, NASA, the EPA and arts funds.

The Fed chief said that “the federal budget appears to be on an unsustainable path” but that the “exceptional increase” in the deficit had been needed.

Federal Reserve Chairman Ben Bernanke on Tuesday urged bold action action to pull the economy out of a deepening slump, even if it means a surge in U.S. government debt.