Obama budget would reduce or eliminate 200 federal programs

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President Barack Obama’s budget cuts for 2012 hit far and wide, CNNMoney.com reported.

Airports, heat subsidies for the poor, water treatment plants and Pell grants are just some of the targets. In total, half of all government agencies would see their funding reduced from 2010 levels.

The budget would eliminate or reduce funding to 200 government programs for savings of $33 billion in 2012 alone.

The administration will propose cutting $2.5 billion from a program that helps low-income people pay their energy bills during periods of extreme weather. The American Gas Association, an industry group that represents natural gas companies, predicts 3.2 million households would be affected.

Some parts of the Pell grant program are also on the chopping block. The budget will propose eliminating Pell grants for summer school, and allowing interest on federal loans to graduate students to build up during school. Currently, the interest tab doesn’t start running until after graduation. The administration said those cuts would help preserve the maximum Pell grant of $5,500. The cuts would save $8 billion next year and $60 billion over 10 years, CNNMoney reported.

Savings in the Defense Department budget would come in part from a drawdown of forces in Iraq, and also from $78 billion in cuts identified by the Pentagon.

The budget proposed slashing a quarter of the government’s funding for the Great Lakes Restoration Initiative for a savings of $125 million.

Obama is asking Congress to scale back a community service grant program, and cut a community development program that funds projects like housing, sewers and streets, and economic development. The two reductions will save around $650 million.

Taken as a whole package, the White House says its budget would cut deficits by $1.1 trillion over 10 years. See Ticker for more budget detail.