Budget | featured news

President Barack Obama will deliver his first State of the Union address on January 27 and his budget plan on February 1, setting the tone for a second year in office marked by a long list of economic and foreign policy challenges.

The White House has told domestic agencies to assume their budgets will be frozen or even cut by 5 percent as it signals a big push to take on the deficit next year.

Iraq's Cabinet has signed off on a $67 billion draft budget for 2010 that is well below what officials have said is needed, raising concerns that the shortfall will derail the progress of Iraqi security forces just they are taking over from withdrawing American troops.

Signaling a fading chance for compromise, a leading Republican negotiator on health care legislation on Saturday criticized Democratic legislative proposals as budget-busters that would reroute Medicare spending and restrict medical choices.

Faced with a total budget gap of $215 billion for fiscal years 2009 and 2010, most U.S. states looked to their prison and university budgets for relief, according to a report released on Thursday.

Desperate for cash, Arizona state lawmakers are considering selling the House and Senate buildings, then leasing them back over several years before assuming ownership again.

California's Senate approved a package of bills early on Friday morning that would balance the state budget by closing a $26.3 billion shortfall threatening the finances of the government of the most populous U.S. state.

California lawmakers finally sealed a deal with the governor on a plan to close a $26 billion budget gap.

California Governor Arnold Schwarzenegger and lawmakers failed on Wednesday night to agree to balance the state's budget by closing a $26.3 billion deficit, but officials said talks would continue.

Legislative leaders emerged from late-night budget negotiations Tuesday to announce they were closing in on a final agreement on how to address the state's $26.3-billion deficit.