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President Bush's Budget and Minnesota

February 7, 2005
The President's Budget builds on his first term's progress by focusing resources on the Nation's priorities while exercising prudent spending restraint in order to achieve the President's goal of cutting the deficit in half by 2009.

• The 2006 Budget funds efforts to defend the homeland, transform our military for the 21st Century, support our troops as they fight the War on Terror, spread freedom throughout the world, promote high standards in our schools, and continue the pro-growth economic policies that have helped to produce millions of new jobs.
• Meanwhile, overall discretionary spending grows by only 2.1% under the President's Budget - less than the projected rate of inflation - even with significant increases in defense and homeland security. Non-security discretionary spending is reduced by nearly 1% - the first such proposed cut since the Reagan Administration.

Defending our Nation from attack by increasing funding for defense, homeland security, and international assistance and security efforts, including:

• 4.8% more for overall Defense spending than in 2005, a 41% increase since 2001.
• $35 billion more between 2005 and 2011, bringing the total to $48 billion, to reorganize the Army's forces and increase the number of active Army combat brigades by 30%.
• $3.5 billion more through 2011 to implement the Global Posture Initiative, which will increase U.S. responsiveness and allow for the return of 70,000 U.S. troops from Cold War bases.
• $3 billion, an increase of $1.5 billion over 2005, to expand the Millennium Challenge Account to encourage sound economic policies and political reform in the developing world.
• $120 million for the Middle East Partnership Initiative, a cornerstone of the State Department's approach to supporting political and economic reform in the Greater Middle East and North Africa; as well as $80 million for the National Endowment for Democracy to enhance its efforts to strengthen democratic institutions, the rule of law, human rights, civic education, and independent media.
• An 8% increase for government-wide, non-defense homeland security spending over 2005, including fee-funded activities.
• $600 million for a Targeted Infrastructure Protection Program in the Department of Homeland Security to assist State and local governments in reducing the vulnerability of critical infrastructure, such as chemical facilities, ports, and transit systems.
• A $555 million increase for the Federal Bureau of Investigation (11% more than in 2005), bringing the Bureau's funding to a level 76% higher than when the President first took office.
• $4.2 billion for the Department of Health and Human Services' efforts to address the threat of bioterrorism, $154 million more than in 2005.

Building on pro-growth economic policies by making the President's tax cuts permanent and by expanding opportunity and education for all Americans, including:

• $10 billion over 10 years in tax incentives to create economic Opportunity Zones in areas experiencing an economic transition and persistent poverty.
• $3.7 billion for a new economic and community development program that consolidates 18 ineffective or duplicative programs into a flexible and targeted program.
• $27 billion through 2010 to make permanent the Research and Experimentation tax credit, a critical element in our innovation economy.
• $200 million to provide home purchase downpayment assistance to 40,000 low- income families.
• A $28-billion increase for student aid programs through 2015, raising the maximum Pell award by $500 over 5 years, helping more than 10 million needy students cover college costs.
• $1.5 billion for the President's High School Initiative to extend No Child Left Behind (NCLB) reforms into high schools through testing and programs for at-risk youth.
• A 51% overall increase in K-12 education funding since 2001, including over $13.3 billion for Title I to provide grants to improve education in low- income communities and support NCLB reforms, a 52% increase since 2001.
• $11.1 billion for special education grants to States, a 75% increase since 2001.
• $500 million for the new Teacher Incentive Fund to reward schools and teachers that close the achievement gap and attract high-quality teachers to high-need schools.

Assisting those most in need by promoting accessible health care, providing shelter to the homeless, and fighting the global HIV/AIDS pandemic, including:

• $126 billion over 10 years in tax incentives and grants to help low-income
  individuals, families, and others obtain health care.
• $2 billion for Health Centers in medically underserved areas, a $304
  million increase over 2005, fulfilling the President's commitment to create
  or expand 1,200 centers by 2006 and begin meeting his commitment to
  establish a health center in every high-poverty county.
• $1 billion in grants over two years for Cover the Kids, a new campaign to
  enroll eligible, low-income children in Medicaid and the State Children's
  Health Insurance Program.
• Approximately $18 billion for domestic HIV/AIDS prevention, treatment,
  care, and research, including over $2 billion for the Ryan White CARE Act
  program and its comprehensive approach to address the health needs of
  persons living with HIV/AIDS.
• $3.2 billion, $382 million more than in 2005, to continue the President's
  Emergency Plan for AIDS Relief.
• $4 billion, an increase of 8.5% over 2005, for Federal housing and social
  programs for the homeless, including $1.4 billion for Homeless Assistance
  Grants.

Providing vital resources to advance scientific research, develop clean and
affordable sources of energy, clean up polluted sites in our inner cities,
and maintain our commitment to our Nation's parks, including:

1. An unprecedented $132.3 billion for Federal research and development,
   a 45% increase since 2001, including a record $5.6 billion for the
   National Science Foundation's vital science, education, and basic
   research programs, an increase of $132 million over 2005; and $485
   million for the National Institute of Standards and Technology to
   support core fundamental research and facilities, an increase of $34
   million over 2005.
2. $210 million for assessment and clean up of about 600 brownfields
   properties, $46 million more than in 2005, spurring development in
   former manufacturing areas in our inner cities.
3. A $144-million increase to continue upgrading National Park Service
   facilities.
4. Over $1 billion to support the development of reliable, affordable,
   and emissions-free sources of energy, including hydrogen fuel, clean
   coal, and cutting-edge nuclear technology.

Budget Items of Special Interest to Minnesota

On top of the dramatic funding increases for key K-12 programs since 2001,
the President's Budget provides continued support for No Child Left Behind.

• Under the President's Budget, Minnesota would receive more than $111
  million in Title I funding for the No Child Left Behind Act in 2006, a $3
  million increase over 2005 and a 13% increase since the President took
  office.
• The 2006 Budget also provides more than $182 million in special education
  funding for Minnesota through the Individuals with Disabilities Education
  Improvement Act (IDEA), a $7 million increase over 2005 and a 67% increase
  since the President took office.

The Budget provides over $74 million to Minnesota for the Special
Supplemental Nutrition Program for Women, Infants, and Children - more
commonly known as WIC - a $4 million increase over 2005. WIC serves the
nutritional needs of low-income pregnant and post-partum women, infants,
and children up to their fifth birthday.

The 2006 Budget also includes:

• $73 million for the Great Lakes, a $29 million increase over 2005. This
  funding level includes $50 million through the Great Lakes Legacy Act to
  clean up contaminated sediment in the Great Lakes region.
• $34 million for the Army Corps of Engineers to conduct restoration work and
  studies needed to address damage to the Upper Mississippi River.
• $17.5 million for the Lewis and Clark Project, a multi-state rural water
  project that will provide high quality, reliable drinking water to rural
  communities in South Dakota, Nebraska, Iowa, and Minnesota, as well as to
  the city of Sioux Falls, South Dakota.
• A proposal to extend the Milk Income Loss Compensation program (MILC) for
  two years. MILC financially compensates dairy producers when domestic milk
  prices fall below a specified level.
  

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