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  • Agency: Labor
  • Spending: $89 billion
  • Percentage Change from 2012: 35.7 percent decrease
  • Discretionary Spending: $12 billion

Highlights: Most of the cuts at Labor would come from an expected decrease in spending on unemployment insurance programs as the overall unemployment rate declines and fewer people claim benefits.

But those projections also assume there will be no further spending on long-term unemployment benefits beyond Feb. 29. That's when a temporary extension of benefits that Congress enacted late last year will expire. House and Senate negotiators are working on a deal that would extend those benefits past the end of the month as part of broader discussions on extending the payroll tax cut. The deal is likely to reduce the maximum number of 99 weeks that unemployed people are allowed to seek benefits.

Like last year's plan, the budget would trim $450 million from Labor's share of a program that helps train older workers for jobs and community service programs. The program would be transferred to the U.S. Department of Health and Human Services.

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