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Obama Warns Congress of ‘Devastating’ Cuts in Report

An Obama administration report cataloguing the impact of $1.2 trillion in looming spending cuts illustrates the stakes as lawmakers debate what to do about the U.S. deficit less than two months before the election.

The White House budget office said the cuts, known as sequestration and set to start in January, would undermine economic investment and cause “severe harm” to initiatives including food-safety inspections, air-traffic control and support for schools. The Pentagon would be forced to juggle accounts to maintain the war effort and delay repairing or buying equipment, according to the report released yesterday.