WASHINGTON: Striving for unity among Democrats rather than compromise with Republicans, President Barack Obama will unveil an election-year budget today that drops earlier proposals to cut future Social Security benefits and seeks new money for infrastructure, education and job training.
But Obama’s almost $4 trillion budget plan is likely to have a short shelf life. It comes just three months after Congress and the White House agreed to a two-year, bipartisan budget pact that has already set the parameters for this election year’s budget work. Democrats controlling the Senate have already announced they won’t advance a budget this year and will instead skip ahead to the annual appropriations bills for 2015, relying on new spending “caps” set by December’s budget deal that provide $56 billion less than what Obama wants in 2015.
Obama would divide the extra money equally between the Pentagon and domestic initiatives like boosting manufacturing hubs, job training and preschool programs and cutting energy waste. Republicans are likely to balk at the idea, which would be paid for by curbing special interest tax breaks and making spending cuts elsewhere in the budget.
Obama has also announced a four-year, $302 billion plan to boost spending on highways, rail projects and mass transit. Half of the initiative would be financed through corporate taxes. Funding for highway and mass transit projects expires at the end of September, and there’s bipartisan interest in finding a supplemental funding stream to augment stagnant revenues from the $18.4 cents-per-gallon gasoline tax.