U.S. Agencies Told to Slash Budgets to Save $15 Billion

President Reagan today ordered all federal agencies to slash their budgets in an effort to save up to $15 billion as part of the government’s mid-year review.

Presidential spokesman Marlin Fitzwater told reporters that the cuts are required by changes in original budget assumptions.

Fitzwater said that all U.S. agencies, including the Pentagon, will be affected by the order and are required to submit their budget cuts to the Office of Management and Budget by July 17.

“We will need to make savings of $10 billion to $15 billion,” Fitzwater said, to meet the Gramm-Rudman-Hollings budget reduction target of $108 billion in cuts.

When it was pointed out that the Congressional Budget Office has said $27 billion more in cuts are needed to meet the target, Fitzwater said, “If we need more, . . . we’ll go after it.”