Federal Deficit, Spending Cuts | featured news

Republican leaders in the House of Representatives will seek $32 billion in spending cuts from current levels this year as part of an effort to reduce a forecasted $1.5 trillion deficit.

President Barack Obama will announce a two-year pay freeze for federal employees Monday, a move White House officials say is the first of many difficult decisions that must be made to reduce the nation's mounting deficit.

GOP plan to extend array of tax breaks would raise deficits unless dramatic spending cuts are made.

The White House and Congressional leaders are weighing options for reducing the federal deficit, including a bipartisan commission that could force tax increases and spending cuts.