Nation : Giant Cuts Seen in Deficit Standoff

Republican leaders said today it is almost certain Congress will fail to agree on a deficit reduction measure by mid-October, leading to automatic spending cuts in hundreds of government programs.

Sen. Pete V. Domenici (R-N.M.), after a meeting with President Bush, said the cuts will total about $16.8 billion, including a 5.3% cut in domestic spending, and about 4.6% from defense programs.

The Gramm-Rudman deficit-reduction law requires Congress and the President to reduce the deficit to within $10 billion of the $100 billion 1990 deficit target by that date. Failure to come in under that ceiling triggers automatic spending cuts in almost all budget categories under the law.

The deficit reduction bill needed to avert those cuts is threatened with defeat in the House because most Democrats oppose its cut in the capital gains tax rate. Republicans oppose other provisions, including child-care legislation.