The US budget deficit is expected to reach $US1.35 trillion in 2010, according to US Congress estimates.
In 2009, the US deficit reached a record $US1.4 trillion - equal to 9.9% of gross domestic product and the highest since the end of World War II.
President Obama will make his first State of the Union address on Wednesday and will submit his budget plan on 1 February.
The BBC reports he is expected to announce a three-year partial spending freeze.
The savings - expected to be about $US15 billion off next year's budget and to amount to $US250 billion during the next 10 years - are aimed at reducing the deficit.
The Congressional Budget Office said the large deficits in 2009 and 2010 reflected:
an imbalance between revenues and spending that predated the recession
sharply lower revenues and higher spending in the recession
the costs of various federal policies implemented in response to the global downturn.
The CBO expects deficits to shrink over the coming years as economic recovery gets underway, with the deficit falling to $US475 billion in 2014.
But it says the deficit will then start to rise again, reaching $US687 billion in 2020.
