Obama Demands Agencies Cut Spending by 5 Percent in 2017

Federal agencies will seek 5 percent in discretionary spending cuts in their fiscal 2017 budget proposals compared to their fiscal 2016 requests, under an order from the Obama administration.

The cuts should be aimed at ongoing efforts to reduce “fragmentation, overlap and duplication,” Office of Management and Budget Director Shaun Donovan wrote in a memorandum to agency heads May 1. The call for the 5 percent government- wide cut comes after Obama proposed spending levels 7 percent above sequestration in his fiscal 2016 blueprint. The cuts should focus on areas recommended by the Government Accountability Office, Donovan said.

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