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President Bush's Budget and North Carolina
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,
- 4.8% more for overall Defense spending than in 2005, a 41% increase since
- $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,
- $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
- $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-
- 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
- $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,
- $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
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,
- An unprecedented $132.3 billion for Federal research and
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.
- $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.
- A $144-million increase to continue upgrading National Park
- 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 North Carolina
On top of the dramatic funding increases for key K-12 programs since 2001,
the President's Budget provides continued support for No Child
- Under the President's Budget, North Carolina would receive more than
$300 million in Title I funding for the No Child Left Behind Act in 2006, a
$13 million increase over 2005 and a 70% increase since the President took
- The 2006 Budget also provides more than $303 million in special
education funding for North Carolina through the Individuals with Disabilities
Education Improvement Act (IDEA), a $15 million increase over 2005 and a
79% increase since the President took office.
The Budget provides over $152 million to North Carolina for the
Special Supplemental Nutrition Program for Women, Infants, and
Children - more commonly known as WIC - a $9
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:
- $64.5 million for the Appalachian Regional Commission to help
economically distressed communities in the region make use of resources from other
Federal agencies, States, local governments, and the private sector to
provide a broad program of assistance. In 2006, the Commission will
promote strategies aimed at diversifying the economy of Appalachia and
closing socioeconomic gaps through education, workforce training, small
business assistance, leadership development, and health care
- $9.5 million for the National Oceanic and Atmospheric Administration
to implement the President's plan to provide the United States with nearly
100% detection capability for a U.S. coastal tsunami. The new system will
also expand monitoring capabilities throughout the Pacific and
Atlantic/Caribbean basins, providing tsunami warnings for regions bordering
half of the world's oceans.
- A proposal to amend the Tax Code to exclude Federal Emergency
Management Agency mitigation grants from gross income.
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