July 25 (Bloomberg) -- Senate Majority Leader Harry Reid’s debt-limit plan would include $1.2 trillion in discretionary cuts in defense and non-defense spending, according to a summary of the proposal.
The plan would also include $1 trillion in savings from winding down the wars in Iraq and Afghanistan, according to the document. It also would include $100 billion in mandatory program savings, including $30 billion in Fannie Mae and Freddie Mac changes and $10 billion to $15 billion in savings from agriculture programs.
Interest savings would produce $400 billion, under the plan. The proposal also would create a joint bipartisan committee of 12 members to recommend future savings, with a guaranteed vote in Congress.
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