The $34 billion in budget cuts to which President Reagan has provisionally agreed would mean eliminating more than two dozen programs, including such familiar ones as revenue-sharing, postal and dairy subsidies, and legal services for the poor.
Of special impact in the Washington area are Reagan's proposed 5-percent salary cut for all federal civilian employes, including more than 300,000 here, and a freeze on the federal payment to the District of Columbia and on funds for St. Elizabeths Hospital.
A portion of the impact-aid program that compensates local school districts for educating children whose parents live or work on federal land would be terminated. District and suburban school districts with large numbers of federal employes' children would be affected.
Programs for the poor also would be frozen or scaled back, with the largest cut coming in Medicaid, the health program for needy aged, blind and disabled people and low-income families with children.
In addition, the administration proposes cuts in food stamps, Head Start, low-income fuel aid, Aid to Families with Dependent Children (AFDC) and the Women, Infants and Children (WIC) program, which provides food for poor mothers and their children. Rental subsidies for the poor would be frozen for two years and the Job Corps eliminated altogether.
Student loans would be frozen and provided only to families earning $30,000 or less. Total student aid to any person would be limited to $4,000 from all sources. Boat owners who need Coast Guard help would have to pay fees in some cases. Free care in Veterans Administration hospitals would be limited to lower-income persons.
Major policy changes are foreshadowed in the fine print of the budget proposal being studied by the Cabinet and in the offices of Republican members of Congress. Land acquisitions for public parks would end. Poor people would be required to work for welfare benefits. The budgets of many regulatory agencies, including the Environmental Protection Agency, would be frozen. And, spreading the pain to the Capitol, the budget authority for the legislative branch would be cut by 10 percent. The Supreme Court and other federal judges are exempt because the Constitution prohibits cutting sitting judges' salaries.
The largest single reduction in the proposed fiscal 1986 budget would be $2.8 billion in Medicare, the health insurance program for aged and disabled people. Payments to hospitals would be held 2 percentage points below inflation, doctors' fees would stay frozen, and patient premiums would rise to 35 percent of the cost of the doctor-insurance portion of Medicare instead of 25 percent.
The proposed administration cuts were circulated in a 26-page document provided by the White House yesterday to Republican members of Congress.
The proposal is designed to reduce the federal deficit -- now estimated at $206 billion -- to about $170 billion in fiscal 1986. It calls for domestic spending cuts of $34 billion next year. Reagan still needs $8 billion in cuts to meet his goal, and officials said this is expected to come from the Pentagon.
Many of the programs have been targeted by the administration in the past without much success.
A point-by-point summary of the administration's proposal follows.
Some of the spending reductions listed are dollar cuts from year to year; others are cuts in the rates of growth that would occur if the president or Congress left them alone.
Six federal pension and benefit programs would be frozen at current budget-authority levels for a year, for total savings of about $1.8 billion in fiscal 1986. The programs affected are railroad retirement and black lung benefits, food stamps, child nutrition, Supplemental Security Income, veterans compensation and pensions, civil service and related retirement payments. The food stamp cuts would not show up until the 1987 budget.
In addition, the administration would eliminate a $672 million subsidy for the school-lunch program for students in the upper range of income eligibility and would cut the civil service retirement program by $248 million along the lines recommended recently by a commission headed by business executive J. Peter Grace. Reducing the salaries of all civilian federal employes by 5 percent would save another $2.2 billion.
Block grants for education of the disadvantaged and the handicapped would be frozen at current levels for a savings of $37 million. Programs for vocational education, science, mathematics and other secondary school assistance would also be frozen, saving $8 million.
A one-year freeze on college student financial aid would save $49 million; the student-aid rule changes would save another $161 million. A freeze on library aid and education research would save $3 million, although the administration proposes saving $29 million more by killing grants to libraries.
The administration would freeze or kill other employment and training funds for a total savings of $50 million. Budget authority for public broadcasting would also be frozen but would not produce savings until fiscal 1988.
A freeze in the WIC program and a 17 percent cut in the allowable caseload would further reduce the budget by $286 million. A one-year freeze in low-income energy assistance would save $87 million. A freeze in Indian health programs and bilingual education programs would save $61 million. Eliminating part of the impact-aid program and freezing the rest would save $122 million.
Job Corps funding would fall $120 million in fiscal 1986 and be terminated altogether a year later. The Head Start program of enriched preschool education for disadvantaged children and another child-welfare program would be cut by $59 million.
Programs providing jobs and services to senior citizens would be cut $34 million. Rehabilitation services for the handicapped would be cut $47 million. The Work Incentive Program to help welfare clients find jobs would be terminated, saving $226 million.
Community Services grants, which go to local groups to help the poor, and the Legal Services Corp., which provides free legal care to the needy, would be terminated. Funds for ACTION, which operates volunteer social aid programs, would be frozen for a year. Total savings for all three would be $567 million.
Cuts in nuclear fusion and fission research and development would total $227 million; non-nuclear energy research and development would be cut $292 million. NASA civilian aeronautical research and development would be abolished, saving $310 million.
Agricultural research would be cut by $129 million. The National Science Foundation and energy science programs would be cut $36 million. The National Institutes of Health, the Alcohol, Drug Abuse and Mental Health Administration and other health research units would be cut a total of $239 million.
The Economic Development Agency and aid to the Appalachian area would be phased out over several years. By eliminating all new purchases of lands for public parks and through other management changes the administration proposes to save $303 million.
Funds for law enforcement would be cut $217 million, for the Environmental Protection Agency $25 million and for other regulatory agencies $26 million. Elimination of subsidies for Amtrak and commuter railroads would save $535 million. Killing health-professions education programs would save $85 million.
The National Endowments and other cultural institutions would be reduced by $6 million. Agricultural conservation programs would be eliminated, saving $630 million in the first year. The National Oceanic and Atmospheric Administration would take a 10 percent cut in its budget authority, worth some $97 million. A one-year freeze at the Internal Revenue Service, the Census Bureau and in the federal payment to the District would save $224 million.
A freeze on spending for water projects would save $97 million, and user fees to defray the cost of constructing, operating and maintaining harbors and inland waterways would net the government $326 million.
Phasing out most urban mass-transit funding would save $798 million. Freezing VA medical outlays and imposing an income ceiling on use of VA health facilities for nondisabled veterans would save $431 million.
Cuts in agricultural inspection, services and information would save $18 million. A freeze on the costs of administering a variety of social benefit programs and the elimination of 19,000 jobs at the Social Security Administration would save $102 million.
Federal administrative accounts and services would be cut by $563 million. The Peace Corps would be scaled back $5 million. The Federal Emergency Management Agency and other civil defense programs would be reduced by $80 million; the U.S. Information Agency would be cut $21 million.
The 10-percent cut in the legislative branch would save $166 million. A one-year freeze on Coast Guard military pay and budget authority would save $97 million and new Coast Guard user fees would produce $100 million.
Community Development Block Grant loan guarantees would be abolished, saving $164 million, and the block grants would be cut 10 percent, $23 million. Urban Development Action Grants, which many cities have combined with private investments to revitalize their downtowns, are slated for elimination, saving $32 million next year.
The $4.5 billion revenue-sharing program would be abolished in 1987.
Grants for new sewer projects would be eliminated, saving $50 million in 1987. All postal subsidies except for schoolbook shipments and for the blind would be ended to save $785 million.
A proposal to phase out Rural Electrification Administration-insured loans by 1990 and to increase charges on a variety of REA loans would save $206 million in next year's budget. Phasing out low-income weatherization assistance by 1990 would save $50 million next year.
In addition, the rural housing-subsidy program would be abolished and merged into other subsidized-housing programs. That would save $2.2 billion.
Restrictions on new highway-construction contracts would save $208 million.
Medicaid would be cut $1 billion next year; after that, spending for the program would be allowed to increase only at the rate of inflation.
The welfare program would be reduced by $188 million by requiring all states to enact "workfare" laws that would force recipients to earn their benefits. In addition, in cases where mothers who are minors are living with relatives, the total income of the entire group, not just the mother, would be used to determine eligibility.
A two-year moratorium would be imposed on subsidized housing for a reduction of $102 million by 1987. Public-housing operating subsidies would be reduced $88 million next year. A modified freeze on federal aid for foster care and adoption assistance would cut the program by $53 million.
The elimination of subsidized farm-ownership loans and new restrictions in other parts of the farm-credit program would reduce the program by $2.5 billion. A five-year phaseout of various crop-insurance subsidies would save $92 million next year.
In the farm price-support program, the administration is proposing to reduce subsidies, abolish the dairy program, limit so-called deficiency payments -- the gap between the expected and actual sale price -- to $10,000 per farmer and put in place other loan limits. The administration estimates that the changes will reduce spending by $1.2 billion next year.
Another $82 million would be cut from the budget by abolishing rural water and sewer programs.
The Export-Import Bank would be cut $356 million through elimination of all direct loans and increased fees for guaranteed loans. In addition, a proposal to eliminate the Small Business Administration and sell its loan assets would cut $1.6 billion from next year's budget. Another $400 million would be saved by reducing states' share in the sale or lease of minerals.
A moratorium on new purchases for the Strategic Petroleum Reserve would save $2.17 billion. Another $56 million would be saved by eliminating subsidies for air carriers.
The space program would be cut by $100 million by stretching out funding for the proposed space station.
A new 5 percent fee levied on veteran-housing loans and some other federally insured mortgages would cut the budget by $953 million.
Finally, putting into effect various proposals by the Grace commission, including user fees for meat inspection and new fees on recreational use of federal facilities, would reduce next year's budget by $973 million.