WASHINGTON (Reuters) - President Barack Obama on Monday sent a $3.8 trillion budget request to Congress that would narrow the federal deficit by curbing 120 federal programs but set aside $100 billion to tackle unemployment.
The budget plan, which would take effect when fiscal year 2011 begins on October 1, projects a record fiscal deficit of $1.56 trillion this year but predicts the red ink will subside to $1.27 trillion in 2011 and half that in 2012.
Following is a glance at top items in the White House request, which lawmakers in the U.S. House of Representatives and the Senate will now examine as they work to develop a budget resolution for spending.
* The spending plan reflects the perils of Obama's climate change and healthcare reform initiatives, two domestic priorities that have run into roadblocks in Congress.
The request drops $646 billion in projected revenue from a cap-and-trade climate bill, signaling doubts about the measure's future, and targets smaller efforts to improve the healthcare system such as more use of generic medicines and boosting electronic medical records.
* With the U.S. unemployment rate at a near-record 10 percent, the White House budget's biggest job-creation item is $33 million in tax cuts for small businesses that expand their payrolls.
* The plan also classifies a $6 billion investment in clean energy as a jobs initiative and sets aside $4 billion to create a National Infrastructure Innovation and Finance Fund to finance regional and national projects.
* Also classified as jobs-creation spending is more than $7 billion for education programs that provide scholarships and support teacher recruitment as well as elementary and secondary school curriculums.
* The spending plan aims to cut the fiscal deficit by $1.2 trillion over 10 years.
* The biggest deficit-cutting item is $678 billion in taxes over the coming decade as tax cuts for Americans earning over $250,000 a year are allowed to expire. The tax cuts were granted under Republican George W. Bush in 2001 and 2003.
* $90 billion would come from imposing a fee on Wall Street firms to recoup money from the government's financial bailout.
* Savings of $250 billion would come from a three-year spending freeze on non-security domestic spending, and $23 billion in 2011 savings would come from cut to 120 programs including elimination of NASA's program to return to the moon.
* The White House seeks about $200 billion for the wars in Iraq and Afghanistan as well as U.S. military operations in other foreign theaters including Pakistan and Yemen.
That includes a $159.3 billion budget request for ongoing operations in 2011 and a $33 billion supplemental request for this year to cover the cost of sending 33,000 extra U.S. troops to Afghanistan. Obama also wants $8.8 billion for the families of soldiers forced to cope with repeated overseas deployments.
Reporting by David Morgan, editing by Vicki Allen