House GOP Unveils Budget That Cuts Spending by $5.5 Trillion

The dome of the US Capitol is seen January 4, 2013 on a cold day in Washington. High temperatures Monday will occur during the early morning hours as a cold front brings yet another shot of super cold air to the mid-Atlantic region. Temperatures on Tuesday morning will dip into the single digits. AFP PHOTO / Karen BLEIERKAREN BLEIER/AFP/Getty ImagesKAREN BLEIER / AFP - Getty Images

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House Republicans on Tuesday unveiled a proposed budget that would cut spending by $5.5 trillion and be fully balanced in less than 10 years.

The blueprint, an opening salvo in a renewed fight over federal spending in the new Congress, would also allocate an additional $91 billion to fight terrorism, create a premium support program within Medicare beginning in 2024 and form a bipartisan commission to look at long-term changes to Social Security.

It would also entirely repeal Obamacare and turn Medicaid into a block grant program to states.

Senate Republicans are slated to unveil their budget proposal on Wednesday. Both House and Senate budget committees will consider their plans over the coming weeks.

Democrats are sure to blast the plan as a gutting of important safety net programs. And Republicans face an internal dispute over defense spending amid clashes about how to offset a boost in the military's budget.

- Carrie Dann