Obama's 2012 Budget Cuts Would Effect Programs That Help The Poor

NEW YORK (CNNMoney) -- President Obama's 2012 budget will propose cutting $2.5 billion from a program that helps low-income people cope with high energy costs in the cold of winter and heat of summer, according to a source familiar with the budget process.

The reduction is steep, and might impact millions of families. In 2010, the program received $5.1 billion in federal funds, which were then distributed to states that have both low average incomes and high energy costs.

The administration is quick to point out that the reduction will bring the funding down to $2.57 billion, which is exactly the same as the fiscal year 2008 level.

Before becoming law, the proposal will have to survive a marathon budget process, but Republicans are also calling for cuts to the program, a fact that increases the likelihood of passage.

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