Budget of the United States Government, Fiscal Year 2003, Budget Highlights

BUDGET HIGHLIGHTS

A Budget to Fight War and Recession:

Places highest priority on war against terrorism overseas and at home;
Incorporates the bipartisan approach to economic stimulus that assists unemployed workers and fosters job creation;
Reforms the budget to focus on results instead of dollars spent; and
Funds high-priority initiatives while moderating growth in the rest of government.

Protecting the Homeland

Equips and trains first responders (firefighting, law enforcement, emergency medical personnel) to respond to potential future threats ($3.5 billion in grants).
Counters the threat of bioterrorism with enhancements in hospitals and other public health systems ($1.2 billion), research and development ($2.4 billion), pharmaceutical and vaccine stockpile ($400 million), and a national information network for better detection of biological attacks, as well as natural disease outbreaks ($392 million).
Secures our borders through improved tracking of the entry and exit of non-U.S. citizens (+$350 million), more than doubles the number of Border Patrol agents on the northern border, and enhances Customs Service and Coast Guard operations and equipment.
Meets aviation security requirements by continuing the renewed commitment to federal air marshals, hiring 30,000 new federal airport security workers, and installing explosive detection equipment ($4.8 billion).

Winning the War on Terrorism Abroad

Supports 250,000 forward-deployed troops and the 1.1 million here at home with a total defense budget of $369 billion (a 12 percent increase), plus $10 billion more if the war against terrorism requires it.
Meets new threats by making investments in transformational activities such as unmanned combat aerial vehicles ($146 million), precision munitions ($1.2 billion), and intelligence enhancements.
Aids countries fighting terrorism abroad ($3.5 billion), expands anti-terrorism and security training for other countries ($121 million), and expands efforts to diminish the threat of the proliferation of nuclear and biological weapons ($1.5 billion).

Returning to Economic Vitality

Re-proposes a bipartisan approach to economic stimulus that assists unemployed workers and provides tax incentives to boost economic growth.
Moderates the growth of discretionary spending, excluding national and homeland security requirements, to two percent.
Balances the budget by 2005 without endangering the war against terrorism and homeland security efforts and without raising taxes.

Governing with Accountability

Incorporates the President’s five management reforms into agencies’ budgets and plans: strategic management of human capital, competitive sourcing, E-Government, financial management, and budget and performance integration.
Includes a Management Scorecard to measure progress on these five management reforms.
Shifts the budget’s focus from how much is being spent to what is being accomplished.
Begins integration of performance measures in the budget process, rates programs based on their effectiveness, and shifts resources to more effective programs.
Incorporates the President’s Freedom to Manage Initiative and seeks reprogramming and reorganization authority to better align programs and resources.

Funds Other Priority Initiatives while Moderating the Growth in Spending

Education. Funds the No Child Left Behind Act, including $1 billion for the Reading First Initiative and a $1 billion increase to help low-income students meet new reading and math standards. Also funds a historically high level of funding for special education ($8.5 billion).
National Institutes of Health (NIH). Meets commitment to double funding from 1998 levels, proposing $27.3 billion in 2003.
Community Health Centers. Funds 1,200 new or expanded sites to serve an additional 6.1 million patients by 2006.
Medicare Prescription Drugs. Provides a prescription drug benefit in a modernized Medicare program, and takes immediate steps to begin improving Medicare benefits, including assistance with prescription drug costs and better coverage options for seniors (+$190 billion over 10 years).
Health Insurance. Initiates a refundable tax credit to subsidize up to 90 percent of the cost for low and middle income Americans who do not have employer coverage ($89 billion over 10 years).
Breast and Cervical Cancer Screening.Includes a $9 million increase for the Center for Disease Control and Prevention's breast and cervical cancer program to expand screening services for low-income women.
Compassion. Funds the President’s Compassion and Faith-Based Initiatives ($6 billion annually when fully phased-in of new charitable giving tax credits, $100 million for the Compassion Capital Fund, $10 million for Maternity Group Homes, $25 million for Mentoring Children of Prisoners, and $20 million for a Responsible Fatherhood Initiative).
WIC. Serves 7.8 million women and children through the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) program ($4.8 billion in 2003).
Food Stamps. Restores eligibility for many legal immigrants.
Low-income weatherization. Assists an additional 18,000 low-income families ($277 million in 2003—a 20 percent increase).
Job Corps. Supports 122 residential training centers ($1.5 billion in 2003).
Housing. Includes a new tax credit for low and middle income Americans for up to 50 percent of the cost of constructing a new home or rehabilitating an existing home.
USA Freedom Corps. Funds the President’s new USA Freedom Corps Initiative.
Stewardship. Fully funds the Land and Water Conservation Fund (over $900 million) and maintains commitment to eliminate the National Park Service maintenance backlog by 2006. Provides record high funding for National Wildlife Refuges (+$54 million).
Environmental Protection. Provides record funding levels for the Environmental Protection Agency’s operating budget and its state program grants.
Science and Technology. Provides a record high request for science and technology efforts at $57 billion (a nine percent increase).
Agriculture . Funds a farm bill that will provide a solid safety net for all farmers and ranchers, expand markets abroad, and increase resource conservation to enhance our environment (+$73.5 billion over 10 years).
Energy. To reduce dependence on imported oil, funds a new Freedom CAR and a new Coal Research Initiative and proposes $9.1 billion in tax incentives over 10 years to develop alternative technologies, including renewable electricity generation, residential solar energy systems, and hybrid and fuel cell vehicles.
International Drug Control. To destroy the crops and labs that produce cocaine at its sources, funds the Andean Counterdrug Initiative ($731 million).
Drug Treatment. Supports 52,000 additional drug abuse treatment slots.
Election Reform. In line with the recommendations made by former Presidents Carter and Ford, provides $1.2 billion over three years to assist states with the acquisition of new voting machines, voter education, and poll worker training.
Tax-Filing. Improves the convenience and eliminates the cost of electronic filing for citizens with simple tax forms.

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