Barack Obama has proposed a freeze in government spending for three years starting in 2011.
The president said that the huge budget deficit had to be tackled.
''We've already identified $20 billion in savings for next year. To help working families, we will extend our middle-class tax cuts. But at a time of record deficits, we will not continue tax cuts for oil companies, investment fund managers, and those making over $250,000 a year. We just can't afford it."