$3.5 trillion federal budget covers most of Obama's plans

WASHINGTON — When President Obama assesses his first 100 days at a White House news conference tonight, he'll probably have fresh congressional votes endorsing a $3.5 trillion fiscal 2010 budget that includes almost every one of his major initiatives.

The Senate and the House of Representatives are expected to pass it today. The congressional budget is only a blueprint, and under the complex budget process, Congress now will consider separate bills that spell out exactly how money will be spent and raised, a process that's likely to continue through the fall.

It puts Obama and the Democrats in Congress firmly on the record — and committed by congressional votes — to reduce this year's projected $1.7 trillion deficit to $620 billion by 2012 and $523 billion by 2014. That won't be easy, however, not least because the bill also projects tax cuts of $764 billion over the next five years.

The most controversial part of the process is likely to involve overhauling health care, since the budget authorizes the Senate to use a procedure called "reconciliation" to vote on it. Under that rule, only 50 votes would be needed to cut off debate and move to a decisive vote — Vice President Joseph Biden would break any tie — instead of the 60 usually required under Senate rules.

That neutralizes the Republican minority. The budget also creates a "reserve fund" that could be used to implement his climate-change proposals, notably a cap-and-trade system to reduce carbon emissions. The fund would have to be revenue-neutral; that is, its costs must be paid for with taxes or spending cuts elsewhere.

The budget also calls for slowing the growth of nondefense discretionary spending. The budget envisions extending middle-class tax cuts — such as the 10 percent income-tax bracket, the child tax credit, "marriage penalty" relief and help for many who are subject to the alternative minimum tax — and continuing the 2001 and 2003 tax reductions for most people who earn less than $250,000 a year.

Cuts for higher-income taxpayers would be allowed to expire after 2010.