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GOP Lawmakers Unveil $2.5 Trillion Spending Cuts Package

Photo Courtesy - Getty Images(WASHINGTON) -- Less than a week before President Obama is set to deliver his State of the Union address next Tuesday, a group of House Republicans introduced a proposal Friday to cut spending from more than 100 federal programs and cut back spending levels by $2.5 trillion over the next decade.

The bill, known as the Spending Reduction Act, would hold non-security discretionary spending for fiscal year 2011 to fiscal year 2008 levels, and freeze non-defense discretionary spending to fiscal year 2006 levels for a 10-year budget window -- saving almost $2.3 trillion over the next 10 years, according to the Republican Study Committee.

The national debt has nearly doubled over the past four years from $8.6 trillion to $14 trillion.  Compared to current projections from the Congressional Budget Office, Jordan said the bill would save taxpayers an estimated $2.5 trillion through 2021.

Rep. Scott Garrett of New Jersey said the legislation fulfills the GOP’s pledge to cut spending back to 2008 levels and would also return $45 billion from the stimulus bill that has not yet been spent.

At the start of FY 2012, spending is cut back to 2006 levels and frozen for the next 10 years.  To help achieve these savings, the bill shrinks the size and cost of the civilian federal workforce and specifically targets over 100 budget items and spending reforms, according to the committee.

The bill would save $30 billion by eliminating federal control of Fannie Mae and Freddie Mac, and would save about $80 billion by prohibiting any fiscal year 2011 funding from being spent to implement any provisions in the health care law that was repealed in the House Wednesday.

The measure would also eliminate automatic pay increases for civilian federal workers for five years and would cut the civilian workforce by 15 percent through attrition -- permitting the hiring of only one new worker for every two workers who leave the federal workforce until the reduction target has been met.

House Democrats largely rejected the plan, arguing that the proposed cuts only create more unemployment while jeopardizing the economic recovery.

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