For Immediate Release
Office of the Press Secretary
February 7, 2005

Fact Sheet: The 2006 Budget--Meeting the Nation's Priorities

      In Focus: FY 2006 Budget

The President’s Budget builds on his first term’s progress by focusing resources on the Nation’s priorities while exercising responsible 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.
• The Budget contains more than 150 reductions and terminations of non-defense discretionary programs, saving over $20 billion in 2006. The Budget also contains $137 billion in savings over 10 years in mandatory spending.
• By holding Federal programs to a firm test of accountability and focusing resources on top priorities, we are taking the steps necessary to achieve the President’s deficit-reduction goals. With the Budget submitted by the President, the deficit is forecast to fall from 3.5% of GDP in 2005 to 3% in 2006, and to 1.5% by 2009, well below the 40-year historical average of 2.3% of GDP.

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.
• $3 billion, an increase of $1.5 billion over 2005, to expand the Millennium Challenge Account.
• $120 million for the Middle East Partnership Initiative to support political and economic reform in the Middle East and North Africa.
• An 8% increase in government-wide, non-defense homeland security spending over 2005.

Building on pro-growth economic policies by expanding opportunity and education for all Americans, including:

• $10 billion over 10 years in tax incentives to create economic Opportunity Zones in areas transitioning to new and emerging industries.
• $200 million to provide home purchase downpayment assistance to 40,000 low-income families.
• $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 grants in 2006.
• A $28-billion increase for student-aid programs through 2015, including an increase in the maximum Pell Grant award by $500 over five years, the retirement of the Pell Grant shortfall, and additional benefits for student borrowers.

Assisting those most in need by promoting accessible health care, fighting the global HIV/AIDS pandemic, and supporting the efforts of faith-based and community groups to transform lives, including:

• $2 billion for Health Centers in medically underserved areas, a $304-million increase over 2005, to fulfill 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.
• $3.2 billion, $382 million more than in 2005, to continue the President's Emergency Plan for AIDS Relief.
• $385 million for five programs arising from the President’s Faith-Based and Community Initiative.

Providing vital resources to advance scientific research, develop clean and affordable sources of energy, and maintain our commitment to our Nation’s parks, including:

• 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, an increase of $132 million over 2005.
• 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.
• A $144 million increase to continue upgrading National Park Service facilities.