White House: spending freeze may slow Obama agenda

WASHINGTON (Reuters) - President Barack Obama may take more time to deliver on some of his policy promises in light of a proposed spending freeze but is still committed to his core agenda, White House officials said on Tuesday.

Obama is seeking a three-year freeze on some domestic programs in his 2011 budget that would save $250 billion by 2020, raising questions over his ability to fulfill expensive promises that range from healthcare reform -- already up in the air politically -- to revamping U.S. energy use.

"The president's objectives haven't really changed," said Rob Nabors, deputy director of the White House's Office of Management and Budget, on a conference call with reporters.

"There are a number of areas, however, where we made commitments to do things over four, five years that will ... perhaps take us six or seven years now."

Specifically, Nabors said the administration would still be focused on "creating an economy that will work in the 21st century," improving the U.S. education system and investing in "clean" energy technology.

"We are slowing the growth of some of these programs while at the same time eliminating things ... that really aren't priorities," Nabors said.

"We're going to be working to perhaps lengthen the amount of time necessary to achieve some of the goals that the president has laid out."

Obama will outline details of the proposed cut in his State of the Union address on Wednesday and in the unveiling of his budget on February 1.

If the freeze hits key domestic programs, that would draw criticism from Obama's Democrats, many of whom are disappointed that promises he made as a presidential candidate have not been met. But if it does not affect spending on Obama's domestic priorities, the White House will likely face criticism from Republicans for not doing enough to tackle the deficit.

White House spokesman Robert Gibbs, while declining to give details on what programs would be scaled back or eliminated, said the budget would match Obama's policy goals.

"The president will cut programs that are duplicative or serve what he believes is no important purpose, and invest in, as families do, investments for the future," he said.

Gibbs said the proposed cuts would not undermine the U.S. economic recovery and that Obama stood by his pledge to halve the U.S. deficit by the end of his current term in office in 2013.

Obama's proposed budget savings will need congressional backing and would exclude Defense, Veterans Affairs, Homeland Security and international affairs spending, according to administration officials.

The United States ran a record $1.4 trillion budget deficit in fiscal year 2009. The nonpartisan Congressional Budget Office said the deficit for the current fiscal year will come in at $1.35 trillion.

(additional reporting by Alister Bull; editing by Mohammad Zargham)