The only civilian Pentagon workers who would be exempt from furloughs would be Senate-confirmed political appointees such as the defense secretary and deputy defense secretary, as well as a relatively small number of workers deemed essential to protect the safety of defense property and personnel.
Panetta said the administration is still working with Congress to avoid automatic budget cuts by reaching agreement on a deficit reduction plan.
Associated Press writers Donna Cassata, Lolita C. Baldor and Bradley Klapper contributed to this report.
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