GOP Budget Calls for Spending Cuts

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The House Republican budget unveiled by Rep. Paul Ryan Tuesday would cut spending below the level agreed to by both parties in August and reiterates Mr. Ryan's proposal for transforming Medicare.

The budget, which sets spending for the 2013 fiscal year, which starts Oct. 1, also takes aim at a variety of high-profile programs. It recommends repealing President Barack Obama's health plan, eventually eliminating Fannie Mae and Freddie Mac, and turning Medicaid and the Supplemental Nutritional Assistance Program, formerly known as food stamps, into block-grant programs.

Medicaid growth would be cut by $810 billion over 10 years.

Mr. Ryan (R., Wis.), chairman of the House Budget committee, proposes reducing the federal work force by 10% over three years through attrition. His budget also would restore about half of Mr. Obama's recommended cuts in defense and would forestall defense cuts scheduled to go into effect beginning at year's end as part of the deficit agreement.