Deficit Panel’s Failure Aims at Defense While Sparing Medicaid

The supercommittee’s failure to reach a deficit-reduction agreement puts into motion $1.2 trillion in spending cuts over 10 years targeting defense and domestic agency budgets while sparing entitlement programs such as Medicaid.

Barring congressional action to thwart the reductions, starting in 2013 spending on education, transportation and the environment will face automatic cuts, known in Washington as sequestration, after the 12-member panel was unable to reach an agreement this week.