Federal Deficit, Spending Cuts | featured news

It's just about over for a special deficit-reduction supercommittee, which appears set to admit failure today in its quest to sop up at least $1.2 trillion in government red ink over the coming decade. The bipartisan 12-member panel is sputtering to a close after two months of talks in which key members and top congressional leaders never got close to bridging a fundamental divide over how much to raise taxes. The budget deficit forced the government to borrow 36 cents of every dollar it spent last year.

With the clocks ticking down to deadline, it is becoming increasingly apparent on Capitol Hill that the supercommittee will not be able to reach its goal of cutting $1.2 trillion from the national debt.

A bipartisan group of lawmakers from both houses urged the deficit-reduction supercommittee Wednesday to “go big” as it nears a deadline to avoid mandatory across-the-board cuts, telling the panel it has significant congressional support for a deal that would cut the deficit by about $4 trillion. But Democrats and Republicans on the supercommittee later held separate meetings amid mounting pessimism that the 12-member panel would be able to reach an agreement.

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.

A proposal to phase out the $1 bill and replace it with a $1 coin could be gaining currency as the "supercommittee" looks to find ways to save the government money... The move to a coin would cost money in the short term, but eventually save money because paper currency lasts about 42 months — while coins theoretically last forever. Moving to a coin could save $5.6 billion over 30 years, according to the Government Accountability Office.

The House of Representatives on Tuesday passed a bill that puts the government on stable financial footing for six weeks but does nothing to resolve a battle over spending that is likely to flare again.

A last-minute deal reached by Democratic and Republican leaders in the Senate diminished the chances of a government shutdown by week's end.

More than four out five Americans say they are dissatisfied with the way the nation is being run, according to a Gallup survey reporting a resounding thumbs-down for the federal government as it prepares to deal with another round of budget challenges.

Failure of Republican House leadership to pass a debt-reduction bill gives Democrats the edge, at least for now.

A rising number of Democrats are asking President Obama to take executive action and raise the $14.3 trillion debt ceiling on his own, but Obama ...