Michel Sides With Reagan in Deficit Fight

House Republican leader Robert H. Michel aligned himself today with President Reagan in resisting Social Security budget cuts, but pointed toward deeper reductions in defense to keep deficit-reduction moves on track.

Michel, emerging from a budget meeting at the White House with top presidential aides, said there was “nothing dramatic” about a $10-billion shortfall Reagan faces in finding the spending reductions needed to meet his deficit targets.

The shortfall has resulted from lower-than-expected revenues and a slight retreat from spending cutbacks that had been included in earlier versions of the fiscal 1986 budget Reagan will send to Congress on Feb. 4.

Different Approaches

While stressing the need for the White House to work closely with both houses of Congress in fashioning a deficit-reduction plan, Michel indicated that the House and Senate may have different approaches.

Citing campaign promises, Michel said a freeze on Social Security benefit increases has “never been an element of discussion on the House side.”

“We’ve always operated under the criterion that the President has placed several things off-limits and we have to honor that,” Michel said.

On defense, the House GOP leader indicated the Pentagon may be forced to provide more than the $8.7 billion in savings Reagan promised last month and said House Republicans might have sent a clearer message to that effect if U.S. and Soviet officials had not just resumed arms talks in Geneva.

Deputy Press Secretary Larry Speakes appeared today to play down the move by Senate GOP leaders to offer their own budget, including a freeze on Social Security cost of living increases, on Feb. 1, saying, “Their budget will be very much in line with ours.”

But Senate GOP leaders have said they expect to consider cuts in all areas of the budget, including defense and Social Security--two areas where Reagan is skittish about reductions.