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Reagan Gets Look at First Budget Draft

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Associated Press

Budget Director James C. Miller III today submitted to President Reagan a first draft of next year’s proposed federal budget, a plan that U.S. officials said contains some of the most sweeping domestic spending cuts ever considered by the Administration.

It was Reagan’s first look at the budget, which Miller has said calls for at least $50 billion less in non-military spending in the fiscal year that begins next Oct. 1.

White House officials would not divulge specific details of the budget proposal, which will be presented to the Cabinet on Thursday.

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But sources both inside and outside the Administration said it includes most of the program eliminations Reagan unsuccessfully advocated in his 1986 budget, including ending Amtrak subsidies and abolishing the Small Business Administration and the Jobs Corps.

According to the sources, the new package also is likely to propose:

--Drastic cutbacks in government aid programs to states and cities, including housing, mass transit and urban development programs.

--A major overhaul of federal credit programs and a tightening of requirements for obtaining a wide variety of government-backed loans, including new slashes in student aid programs.

--A new package of revenue-raising “user fees”--including higher fees to use national parks--to shift a greater share of the cost of government services to those who use them.

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