In what can be considered the first major setback to President Barack Obama’s education-revamp program, the US House of Representatives Thursday voted to slash $800 million from the administration three key education initiatives – charter schools, teacher merit pay and the Race to the Top competition – aimed largely at preventing teacher layoffs.

The cuts, which came about despite a last-minute veto threat by the President, essentially comprise a substantial $500 million diversion from the $4.35 billion Race to the Top program - the initiative which rewards states that adopt inventive education redesigns.

In addition, $200 million have been slashed from the Teacher Incentive Fund (TIF), which hands over grants for supporting pay-for-performance programs; and $100 million have been cut from initiatives that intend to help start new charter schools.

While the TIF has received $400 million in the fiscal year 2010, over and above the $200 million from last year’s economic-stimulus package, the American Recovery and Reinvestment Act; the charter program received $265 million in federal funding.

Meanwhile, noting that President Obama wants Congress to look to funds other than his signature education initiative, the White House spokesman Tommy Vietor said: “The President believes that we need to keep teachers in the classroom, and we have worked with Congress to find a way to pay for it. But the President also feels very strongly that we should not cut funding for Race to the Top, one of the most sweeping reform initiatives in a generation.”