Washington's heated budget battle will continue this week when U.S. President Barack Obama presents a deficit reduction plan on Wednesday.
The latest federal budget proposal will come less than a week after President Obama and Congress reached an eleventh-hour agreement for the 2011 budget to prevent a government shutdown. They reached the deal shortly before midnight Friday, when the shutdown would have gone into effect.
Lawmakers agreed to slash around $38.5 billion in spending from this fiscal year's budget. Republicans were able to push for more cuts; Democrats won a fight to keep funding for Planned Parenthood.
Many analysts say the 2011 budget battle was just a warm-up for Washington's upcoming funding issues: the 2012 budget and the debt ceiling.
While details of Obama's plan are still vague, David Plouffe, a senior White House advisor, said Sunday on Fox News that the president will name a dollar amount for deficit reduction goals. Obama is expected to present a 2012 plan that includes cuts to entitlement programs Medicare and Medicaid, changes to Social Security, reduced military spending and support for tax increases for America's richest taxpayers.
"Every corner of the federal government has to be looked at here," said Plouffe. "We're going to have a big debate."