Jacob Lew, Director of the Office of Management and Budget (OMB), released a memorandum on August 17, 2011 that outlined the President's budget reduction targets for 2013. In support of the President's proposed $2.4 trillion deficit reduction over the next ten years, Lew requests that all agencies submit budget proposals that reflect two levels of austerity budgeting: cuts of at least 5% of 2011 discretionary appropriations and cuts of at least 10% of those appropriations, unless otherwise advised by OMB. Lew explains that, "By providing budgets pegged to these two scenarios, you will provide the President with the information to make the tough choices necessary to meet the hard spending targets in place and the needs of the Nation."

However, the memo discourages random cuts or those that cut funds across the board, while prohibiting agencies from finding funds from the implementation of new user fees. Instead, agencies should aim to "eliminate low priority and ineffective programs," cut redundancies in programs, consolidate programs, and strengthen those that foster economic growth.

What this will mean for transportation and infrastructure improvement remains to be seen. Many, including Jacqueline Simon who is the public policy director for the American Federation of Government Employees, believe such drastic reductions may cost jobs and inhibit economic growth. Simon concludes, "It's clear that cuts of this magnitude would cost jobs in the middle of a jobs crisis, and we can't understand why the administration is pursuing a policy that will clearly worsen the problem with unemployment."