White House: Cut Spending, Kill Programs The White House is ordering a 5% cut in nonsecurity spending in fiscal 2012, and has told agencies to identify “low-impact” programs that can be put on the chopping block. Office of Management and Budget director Peter Orszag said the moves are necessary to meet President Obama’s directive for a three-year freeze on nonsecurity spending. The directive “requires eliminating low-priority programs, squeezing out waste from all activities, and achieving better performance with the resources we have” he wrote in a June 8 memo. In another memo, Orszag and White House chief of staff Rahm Emanuel told agency heads, “Your agency should evaluate programs based on their impact on your agency’s mission and relevant Presidential initiatives. In doing so, your agency should consider whether the program has an unclear or duplicative purpose, uncertain Federal role, completed mission, or lack of demonstrated effectiveness.” The latest belt-tightening moves come as polls show widespread voter anger over federal spending and budget deficits. Orszag said the three-year freeze will save $250 billion over the next decade. In a June 8 speech at the Center for American Progress in Washington, Orszag said the freeze will not necessarily affect all agencies equally: “By asking each agency to come back with something at minus-five [percent], we’re creating the room to plus-up some, reduce others and what have you, so that we can continue to hit that overall freeze.” The administration’s approach is similar to Defense Secretary Robert Gates’s order that military services and defense agencies cut spending on support and overhead, so funds could be redirected to the warfighter. Deputy Defense Secretary William Lynn said the goal is to save $100 billion over five years. He said about two-thirds of the savings should come from overhead.