Bush Sends $2.1 Trillion Spending Plan to Congress

President Bush sent Congress his fiscal 2003 budget on Monday, heavy on defense and homeland security, but with his tax cuts meant to spark the U.S. economy still in place, news services reported.

Although the budget totals $2.1 trillion, numerous federal programs, including some transportation initiatives, are facing reduced funding as the cost of fighting terrorism increases.

The defense budget is expected to rise by 14.5% and the budget for homeland security, appearing formally for the first time on a federal budget, will double from its current level, Bloomberg said. If the White House has its way, the United States will spend $379 billion on defense and $37.7 billion on homeland security.

Much of that homeland security funding will go toward increasing security at borders and airports, and fighting bioterrorism. If increased security slows passage through borders, or causes flight delays, ground transportation networks could be disrupted.

This spending means that funding for highway construction will be slashed by $9.1 billion under Bush's budget, the Associated Press reported. Fewer highway construction dollars could lead to poor roads and that can hurt the trucking industry. (Click here for a related story.)

Bush is calling for a 9% increase in discretionary spending by Congress, Bloomberg reported. That increase, coupled with lost revenue from tax cuts, will force the federal government back into deficit spending for the first time in four years, the Associated Press reported.

The proposed budget, and a planned economic stimulus package of $54 billion, will push the federal government $80 billion in the red. Already, the White House is looking at a $106 billion deficit for fiscal 2002 and a $14 billion shortfall in 2004, Bloomberg reported.

Congressional Democrats are likely to support "patriotic" programs like defense and homeland security, but will probably fight tax cuts and other items in the budget, analysts told Bloomberg.

In its projections, Bush's budget assumes a 3.8% growth rate for the U.S. economy, Bloomberg said.