Agency-by-agency budget breakdown

Agriculture

The Bush administration's fiscal 2003 Agriculture budget includes the administration's commitment to $73.5 billion in additional budget authority for agriculture over 10 years, but gives no indication of the administration's farm bill policy priorities except for a liberalization of eligibility criteria for the food stamp program.

The full USDA budget request for 2003 is $74.4 billion, or $11 billion over last year's budget proposal and $2.2 billion less than the current estimate of fiscal 2002 expenditures. The budget assumes that a new farm bill will pass but also assumes that crop loan rates will be at their statutory lows and that there will be no emergency aid to farmers, resulting in a reduction in the Commodity Credit Corp. budget from $22 billion in fiscal 2001 and estimated $14 billion in 2002 to a requested $8.9 billion in 2003. The 2003 request is a figure that even USDA officials acknowledged is meaningless.

The budget assumes that Congress will allow legal immigrants who have been in the United States for five years to get food stamps and also that rules for eligibility will be simplified, resulting in an increase of 800,000 people participating to a total of 20.6 million people.

The proposal also eliminates eligibility for 200,000 participants who get non-cash welfare assistance. The budget provides no authority to continue the farmer's market portion of the Women's, Infants and Children nutrition program and the senior citizen farmers' market program. Agriculture Secretary Ann Veneman Monday revised a previously announced $131 million increase for food safety-related homeland security upward to $146 million.--By Jerry Hagstrom

Commerce

The Bush administration proposed a small funding cut for the Commerce Department, and its technology-related agencies would be among those to see a dip in funding levels in fiscal 2003. Despite the cuts, the Bureau of Export Administration (BXA) would receive a spending increase, with $30 million for homeland security and critical infrastructure protection.

Overall, the department's budget would be reduced to $5.19 billion, from $5.21 billion in fiscal 2002. The BXA funding proposal would boost that agency's budget to $103 million, from $72 million, to inhibit the spread of technologies that could be used in biological, chemical and nuclear attacks. BXA will station attaches in China, Egypt, India, Russia, Singapore and the United Arab Emirates in an effort to reduce the risk of shipments of sensitive materials or technologies through those countries, the budget said.

President Bush also proposed reducing the budget of the National Telecommunications and Information Administration to $61.4 million, down from $74 million in FY02. But $3.3 million was offered to improve NTIA's spectrum management and telecommunications research capabilities.

NTIA's budget summary noted that the agency's spectrum management and research programs will support new spectrum uses that promote "affordable, alternative communications services. Facilitating broadband deployment is a major piece of this agenda."--By Teri Rucker

Defense

While President Bush proposed a big increase in defense spending, the budget proposes a reduced increase in ships and aircraft for the Navy.

Although the Navy needs to build eight to 10 ships and add 180 to 210 aircraft annually to sustain its force levels, the Bush budget provides only five new ships in each of the next two fiscal years and just 83 new aircraft. At the same time, the Navy intends to retire six Spruance-class destroyers, two amphibious ships, an ammunition ship and the mine countermeasure command ship Inchon, along with 24 F-14 fighters and 12 surveillance planes. But the Navy insists its fleet will remain above 300 ships, the minimum necessary to meet global commitments.

Reacting to Congress' delay in starting another base closure round, the Pentagon proposes to cut military construction funding from $6.5 billion this year to $4.8 billion to avoid spending money on facilities that might be closed, officials said. Family housing funding, mainly for privatized housing projects, goes up slightly to $4.2 billion.

The budget continues all the major new weapons acquisition programs, including some targeted by critics as unnecessary relics of the Cold War. Specifically, the Air Force would get $5.3 billion for 23 F-22 fighters, $4 billion for 12 more C-17 transports, a down payment on 60 planes, and double the research and development budget for the Joint Strike Fighter to $3.5 billion.

The Navy would get $3.3 billion to build 44 new F/A-18 Super Hornet fighters, a decline of four from fiscal 2002, $2 billion for 11 V-22 Osprey tilt-rotor troop carriers and $545.5 million for four C-130J tanker/cargo planes.

The Army would get $941.7 million to convert 74 Apache Longbow attack helicopters and $910.2 million for research and development on the Comanche armed scout helicopters.

Education

President Bush's proposed fiscal 2003 budget for the Education Department requests $11.4 billion for Title I grants to help low- income schools, and proposes $387 million to develop states' annual reading and math assessments for students in 3-8 grades, mandated under the new federal education bill. Bush also requested $12.5 million--the same as in 2002--to fund math and science partnerships to improve results and teaching skills in these areas.

The budget retains fiscal 2002 funding levels of $1 billion for 21st Century Community Learning Centers that offer before- and after-school activities and proposes $2.9 billion for state grants to recruit, train and retain qualified teachers. It also includes a $53 million increase for educational research activities and emphasizes scientifically based research.

The budget launches a multi-year effort to reform federal job training programs and proposes expansion of a teacher loan forgiveness program to allow math, science and special education teachers who qualify to have up to $17,500 of their student loans forgiven.

The budget includes $700.5 million for education technology state grants to integrate technology in the classrooms, the same funding levels as in 2002. Districts use such funds for training teachers to use technology in the curriculum, developing information technology courses and purchasing IT-based curriculum.

About $22 million is allotted for advanced placement programs, which, in part, support state and local efforts to use distance-learning technologies.

About $1.2 million was allotted to state vocational and adult education grants, which provide technical skills to high school and community college students. Of that money, $108 million is assigned to Tech-Prep Education State Grants, which are designed to prepare students for high- tech careers.

At a briefing, Deputy Education Secretary William Hansen noted that although most non-homeland security related discretionary spending only received an average of a 2 percent increase for fiscal 2003, the Education Department received a 2.8 percent increase in funding.--By Liza Porteus

Energy

The Bush administration has proposed a $21.9 billion Energy Department fiscal 2003 budget that boosts funding for corporate management and nuclear security while trimming nearly $100 million from fossil fuel and nuclear energy programs.

Overall, DOE's budget would rise $582 million, or 2.7 percent, according to a budget outline released by department officials.

Nearly $2.4 billion in the request would be devoted to supporting the administration's energy policy plan, which could be considered by the Senate this month. However, DOE called for a reduction in many traditional energy programs. Hardest hit are the fossil fuel and nuclear energy science and technology divisions, which would be trimmed by $45 million and $43 million, respectively. Energy efficiency and renewable fuel programs would get a $10 million boost, or less than 1 percent.

At a press briefing, Energy Secretary Spencer Abraham said the funding increase for energy efficiency and renewable fuel programs would provide a total of $1.3 billion in funding, more than ever before.--By Brody Mullins

Environmental Protection Agency

The fiscal 2003 request for the EPA totals $7.7 billion, up slightly from the Bush administration's 2002 request of $7.5 billion. The agency is asking for $129.7 million to meet its climate change objectives, which it said would be achieved "by working with business and other sectors to deliver multiple benefits."

The EPA budget also reinforces the Bush administration's belief that state, local and tribal governments "often have the best solutions for their environmental challenges," the agency said. Nearly 45 percent of the EPA's proposed budget, $3.46 billion, consists of grants for states, tribes and other EPA "partners." The budget also provides $2.06 billion for the Clean Water and Drinking Water State Revolving Funds.

For homeland security, EPA is seeking $124 million in new funding for a total agency investment of $133.4 million in that area. Those funds include $16.9 million to conduct drinking water system vulnerability assessments, as well as $75 million to conduct research on better methods for cleaning up buildings contaminated by chemical or biological agents.

The agency also is proposing to spend $200 million to continue brownfields cleanup and redevelopment, an increase of $100 million above its 2002 request level.--By Pamela Barnett

Health and Human Services

In contrast to many other domestic programs, President Bush's health budget includes some substantial increases, most notably a $3.7 billion hike for the National Institutes of Health. That boost represents the final installment of a five-year effort to double the agency's funding from its fiscal 1998 level.

The budget also seeks $190 billion for a Medicare reform/prescription drug proposal, albeit one that does not begin for most beneficiaries until 2006; as well as $89 billion for tax credits to help those without health insurance purchase coverage.

The proposal seeks just under $6 billion to beef up readiness to address bioterrorism. That includes funding for several initiatives the administration resisted when urged by Congress last year, such as another $1.2 billion for state and local health agencies. The bioterror plan also calls for $2.4 billion for research and development of technologies to defend against bioterrorist acts, $851 million for the National Pharmaceutical Stockpile, and $392 million for improved communications systems.

While the bioterrorism money will boost funding for the Centers for Disease Control and Prevention overall, many non-bioterror programs within the CDC will see decreases, including the disease prevention and health promotion accounts, and occupational health and safety.

"We had to make some hard decisions," conceded HHS Secretary Tommy Thompson at the department's briefing.

The blueprint does include some cuts to health programs, including reductions for several small rural health grant programs that are sure to arouse ire among lawmakers on the rural-dominated Senate Finance Committee. Children's hospitals are already complaining about a proposed cut from $285 million to $200 million for a relatively new program that helps children's hospitals underwrite their graduate medical education programs, much the way Medicare helps pay for graduate medical education for other hospitals.

Also on the proposed chopping block is the Agency for Healthcare Research and Quality, whose budget would fall by some $50 million to $252 million.

For the second consecutive year, the budget takes appropriators to task for an upsurge of earmarks, noting that "in 2002, 100 percent of the $312 million appropriated for health facilities construction was earmarked by the Congress, leaving HHS with no discretion in deciding which construction projects would be funded."--By Julie Rovner

Labor

The Labor Department's $56.5 billion budget proposal this year will redirect funds from programs the administration says perform poorly to ones that it says make federal investments more cost- effective.

"It seems to me in a budget environment where we are at war overseas ... we need to ensure we are not unwisely requesting funds," said Labor Secretary Elaine Chao.

The department intends to end payments to the states to administer the Unemployment Insurance and the Employment Services programs over five years, a move likely to draw criticism from governors, and will propose a 25 percent cut in the payroll tax that finances unemployment compensation. In the short term, DOL will offer states a $9 billion combination of previously unspent and new funds to address unemployment issues and a 13-week unemployment benefit extension.

DOL will also propose changes in worker benefit programs and promote voluntary compliance with labor laws. DOL would cut its OSHA enforcement program by $3 million but flat-line federal compliance assistance at $62 million. It has yet to issue a policy on the highly contentious ergonomics program.

The administration is launching a long-term effort for all federal job training and employment programs, beginning with an expansion of the Job Corps to a budget of $1.5 billion, a 5 percent increase over fiscal 2002, and has requested no funding for the Migrant and Seasonal Farmworker program and the National Skill Standards Board. Efforts to cut programs intended to help minorities and immigrants are likely to draw fire from Democrats.

The total Labor budget reflects a $2.9 billion decrease in budget authority over 2002.--By April Fulton

Transportation

The Transportation Department released a $59.3 billion budget for fiscal 2003 that includes an expected $9 billion drop in federal highway funding.

The reduction was the result of a formula established by the Transportation Equity Act for the 21st Century, which tied federal funds to the amount of gas taxes and other fees paid by highway travelers. While that formula produced more federal highway spending over the past three years than under the previous law, a drop in the number of miles U.S. citizens drove in 2001, combined with the increased use of ethanol--which is taxed at a lower rate--and a slump in truck sales has led to a slump for 2003.

"We're tightening our belts on highway spending, but there are increases in everything else," said Deputy Transportation Secretary Michael Jackson. He refused to address whether Congress should make up the shortfall in highway money, or adjust the formula when TEA-21 is reauthorized.

"We've enjoyed the benefit of exceeding the projected levels over the past three years, but now the chickens have come home to roost," he said.

Besides the highway fund, the budget represents an 8 percent increase in overall transportation money, including $4.8 billion for the new Transportation Security Administration--$2.2 billion is expected to come from $2.50 per flight passengers airline ticket fees and the airlines themselves.

The budget would also provide the Coast Guard $7.1 billion, the largest increase in history. The request includes an additional $400 million for port security, $500 million for long-term modernization, and $90 million to improve the Guard's "maritime 911" system.

Funding for the troubled Amtrak train system will remain as a placeholder while Congress decides its fate. Jackson said safety remains the "cornerstone" of DOT's mission. He noted that the budget proposal has $7.7 billion for transportation safety funding, including $4.6 billion for FAA safety initiatives and an 8 percent increase in funding to help prevent bus and truck accidents.--By Michael Steel