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Card: Budget proposal to hold discretionary spending under 1 percent

Homeland Security and defense expected to be boosted


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WASHINGTON (Reuters) -- White House Chief of Staff Andrew Card said President Bush will propose holding spending on government programs not connected to defense or homeland security to under 1 percent in a $2.3 trillion 2005 budget to be sent to Congress on February 2.

The Associated Press reported that Card told NBC this week of the limit, following Bush's State of the Union address comments on limits to annually approved spending. (Transcript: State of the Union address)

The proposal would only affect about one-sixth of all federal spending, budget analysts said. Discretionary spending does not include automatic payments such as Social Security and Medicare.

While many programs might see their growth curtailed under Bush's plan, officials said others deemed higher priorities would get a larger increase, including education.

While on the road in a two-day trip following the State of the Union, The Associated Press reported, Bush announced that his request for federal spending in the 2005 budget year, which he is due to submit to Congress next month, would propose increasing funding for homeland security across all government agencies by 9.7 percent. (Full story)

He said the total dollar amount requested would be "more than $30 billion." But without a description of what the White House meant by "government-wide" spending on homeland security, it was impossible, however, to put Bush's new proposal in the context of spending in other years.

For the current 2004 budget year, Bush requested $36.2 billion for the Department of Homeland Security alone, and Congress approved $34.8 billion.

Democrats have blamed Bush's sweeping tax cuts for undercutting spending on critical domestic programs.

"His proposals lack fiscal discipline. There are consequences for his reckless tax cuts," House Democratic Leader Nancy Pelosi said.

As The Associated Press reported, the Senate overcame Democratic delaying tactics Thursday and sent President Bush an overdue $373 billion bill financing a vast swath of government and bearing a bushel of victories for the White House. (Full story)

Senators approved the measure 65-28 a month after House passage.

The bill finances agriculture, veterans and most other domestic programs for the budget year that began October 1 -- nearly four months ago.

White House spokesman Trent Duffy said the fiscal 2005 budget "represents the president's philosophy" of funding the war on terrorism and homeland security "while strongly restraining growth in other government spending."

But conservative critics say Bush has overseen a nearly 25 percent surge in spending over the last three years -- the fastest pace since the Johnson administration of the mid-1960s.

"The key question is whether the president will enforce this budget proposal with a veto threat," said Heritage Foundation analyst Brian Riedl.

In addition to increases for homeland security programs, NASA will get a 5.6-percent increase to jump-start Bush's plan for missions to the moon and Mars.



Copyright 2004 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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