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Bush looking at freezing domestic spending
Friday, December 17, 2004 Posted: 1747 GMT (0147 HKT)
WASHINGTON (AP) -- The White House is telling federal agencies to expect lean budgets next year, with congressional aides and lobbyists saying President Bush appears ready to propose freezing or even slightly cutting overall domestic spending.
Targeted would be all annually approved programs except for defense and domestic security.
Excluding those two would leave a part of the budget the administration estimates will total $388 billion for the fiscal year that began October 1. Also excluded are automatically made payments like Social Security and interest on the federal debt.
Bush's stringent approach comes as record federal deficits that hit $413 billion last year hinder his ability to pay for overhauling Social Security and extending his tax cuts. He also has tied the budget shortfalls to the weakening dollar, and pledged to reduce red ink to help prop up the currency.
At his White House economic conference on Thursday, Bush said he made "good progress" in holding the growth of non-defense, non-homeland-security programs this year to about 1 percent.
"What I'm saying is we're going to submit a tough budget," he said. "And I look forward to working with Congress on the tough budget."
The president is still making final decisions about the $2.5 trillion budget for 2006 he will propose in February.
But House and Senate aides, speaking on condition of anonymity, said cuts appeared destined for such programs as housing, grants for community development, purchases of new equipment for the Federal Aviation Administration, and Army Corps of Engineers water projects.
... etc
http://edition.cnn.com/2004/ALLPOLITICS/12/17/bush.spending.ap/index.html
Friday, December 17, 2004 Posted: 1747 GMT (0147 HKT)
WASHINGTON (AP) -- The White House is telling federal agencies to expect lean budgets next year, with congressional aides and lobbyists saying President Bush appears ready to propose freezing or even slightly cutting overall domestic spending.
Targeted would be all annually approved programs except for defense and domestic security.
Excluding those two would leave a part of the budget the administration estimates will total $388 billion for the fiscal year that began October 1. Also excluded are automatically made payments like Social Security and interest on the federal debt.
Bush's stringent approach comes as record federal deficits that hit $413 billion last year hinder his ability to pay for overhauling Social Security and extending his tax cuts. He also has tied the budget shortfalls to the weakening dollar, and pledged to reduce red ink to help prop up the currency.
At his White House economic conference on Thursday, Bush said he made "good progress" in holding the growth of non-defense, non-homeland-security programs this year to about 1 percent.
"What I'm saying is we're going to submit a tough budget," he said. "And I look forward to working with Congress on the tough budget."
The president is still making final decisions about the $2.5 trillion budget for 2006 he will propose in February.
But House and Senate aides, speaking on condition of anonymity, said cuts appeared destined for such programs as housing, grants for community development, purchases of new equipment for the Federal Aviation Administration, and Army Corps of Engineers water projects.
... etc
http://edition.cnn.com/2004/ALLPOLITICS/12/17/bush.spending.ap/index.html
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