“No one should go broke because they chose to go to college,” he said.
But Obama also called for a freeze in domestic discretionary spending, the area of the federal budget that funds the vast majority of education programs. To reduce the federal deficit, the president said he would freeze federal spending for three years, exempting Social Security, Medicare, Medicaid, and defense.
“Families are tightening their belts while making tough decisions, and government should do the same,” Obama said, pledging to veto some legislation if necessary.
With such exemptions, however, other programs—including some in K-12 and higher education—could be at risk. In his address, Obama said his administration already had identified $20 billion in wasteful, ineffective spending, and he announced plans to eliminate some tax cuts for the wealthy. The White House is likely to outline more of these budget reductions Feb. 1 when it presents its federal budget plan for 2011.
As part of a campaign against ineffective spending, the president also called on colleges and universities to re-examine their costs as well in an effort to promote post-secondary affordability.
“It’s time for colleges and universities to get serious about cutting their own costs,” he said, in part to “help solve” the problem of affordability.
Citing the nation’s slow economic recovery, Obama said that his top priority for 2010 is jobs. Noting that the nation has lost 7 million jobs during the last two years, he urged the Senate to join the House in quickly approving a new employment bill.
