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SPECIAL EDITION: President’s Budget for FY 2009 February 11, 2008 © 2008, BLANK ROME GOVERNMENT RELATIONS LLC. Notice: The purpose of this newsletter is to review the latest developments which are of interest to clients of Blank Rome. The information contained herein is abridged from legislation, court decisions, administrative rulings, and other sources and should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel. Watergate 600 New Hampshire Ave., NW Washington, DC 20037 (202) 772-5800 OVERVIEW On Monday, February 4, President Bush released his $3.1 trillion Fiscal Year 2009 (FY09) budget. The President’s budget calls for increased defense spending while freezing many domestic discre- tionary spending programs for the next couple of years. It did not take long before criticism of the spending plan began on Capitol Hill. Democrats were particularly concerned with the amount of funding included in the spending plan for the cost of mil- itary operations in Iraq and Afghanistan. Specifically, the FY09 budg- et boosts security-related funding eight percent, while domestic pro- grams increase less than one percent over the previous fiscal budget. Also of concern to many lawmakers is the increase in the nation’s debt during President Bush’s tenure in office. According to the White House, the President’s budget plan would achieve a budget surplus by 2012. According to Congressional Quarterly, however, critics assert that this plan seems plausible only because of “budget omissions and assumptions that critics deride as ‘gimmicks’.” Budget critics are already devising strategies to overcome Bush’s plans for FY09. Since Bush’s tenure is complete in less than twelve months, it is very possi- ble that Democrats will post- pone completing the FY09 spending bills until the new administration takes office. Department of Agriculture Under President Bush’s budget proposal, the FY09 budget increases 5 percent to $97 billion while terminating or reducing 33 Agriculture Department programs. Discretionary spending decreases $1 billion from this year’s totals, to $20.7 billion, while increasing the operations of the food and nutrition program. Specifically, the President’s budget will: Reauthorize the Food Stamp Program and improve the integrity by tightening overly broad waivers from eligibility criteria and removing penalties for college and retirement savings and child care expenses; CONTENTS OVERVIEW 1 DEPARTMENT OF AGRICULTURE 1 DEPARTMENT OF COMMERCE 2 DEPARTMENT OF DEFENSE 2 DEPARTMENT OF EDUCATION 3 DEPARTMENT OF ENERGY 3 DEPARTMENT OF HEALTH AND HUMAN SERVICES 4 DEPARTMENT OF HOMELAND SECURITY 4 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 5 DEPARTMENT OF INTERIOR 6 DEPARTMENT OF JUSTICE 7 DEPARTMENT OF LABOR 8 DEPARTMENT OF OF STATE AND OTHER INTERNATIONAL PROGRAMS 9 DEPARTMENT OF TRANSPORTATION 10 DEPARTMENT OF TREASURY 10 DEPARTMENT OF VETERANS AFFAIRS 11 CORPS OF ENGINEERS – CIVIL WORKS 11 ENVIRONMENTAL PROTECTION AGENCY 12 NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA) 13 NATIONAL SCIENCE FOUNDATION 14 SMALL BUSINESS ADMINISTRATION 15 SOCIAL SECURITY ADMINISTRATION 15 BLANK ROME GOVERNMENT RELATIONS OFFICES Watergate 600 New Hampshire Avenue NW Washington, DC 20037 One Logan Square 130 North 18th Street Philadelphia, PA 19103-6998 The Chrysler Building 405 Lexington Avenue New York, NY 10174-0208
Transcript

SPECIAL EDITION: President’s Budget for FY 2009February 11, 2008

© 2008, BLANK ROME GOVERNMENT RELATIONS LLC. Notice: The purpose of this newsletter is to review the latest developments which are of interest to clients of Blank Rome. The information contained herein is abridged fromlegislation, court decisions, administrative rulings, and other sources and should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel.

Watergate • 600 New Hampshire Ave., NW • Washington, DC 20037 • (202) 772-5800

OVER VI EWOn Monday, February 4, President Bush released his $3.1 trillion

Fiscal Year 2009 (FY09) budget. The President’s budget calls forincreased defense spending while freezing many domestic discre-tionary spending programs for the next couple of years.

It did not take long before criticism of the spending plan beganon Capitol Hill. Democrats were particularly concerned with theamount of funding included in the spending plan for the cost of mil-itary operations in Iraq and Afghanistan. Specifically, the FY09 budg-et boosts security-related funding eight percent, while domestic pro-grams increase less than one percent over the previous fiscal budget.Also of concern to many lawmakers is the increase in the nation’sdebt during President Bush’s tenure in office.

According to the White House, the President’s budget plan wouldachieve a budget surplus by 2012. According to CongressionalQuarterly, however, critics assert that this plan seems plausible only

because of “budget omissionsand assumptions that criticsderide as ‘gimmicks’.” Budgetcritics are already devisingstrategies to overcome Bush’splans for FY09. Since Bush’stenure is complete in less thantwelve months, it is very possi-ble that Democrats will post-pone completing the FY09spending bills until the newadministration takes office.

Department of AgricultureUnder President Bush’s budget proposal, the FY09 budget

increases 5 percent to $97 billion while terminating or reducing 33Agriculture Department programs. Discretionary spending decreases$1 billion from this year’s totals, to $20.7 billion, while increasing theoperations of the food and nutrition program. Specifically, thePresident’s budget will:

• Reauthorize the Food Stamp Program and improve the integrityby tightening overly broad waivers from eligibility criteria andremoving penalties for college and retirement savings and childcare expenses;

CONTENTS

OVERVIEW 1DEPARTMENT OF AGRICULTURE 1

DEPARTMENT OF COMMERCE 2

DEPARTMENT OF DEFENSE 2

DEPARTMENT OF EDUCATION 3

DEPARTMENT OF ENERGY 3

DEPARTMENT OF HEALTH AND HUMAN SERVICES 4

DEPARTMENT OF HOMELAND SECURITY 4

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 5

DEPARTMENT OF INTERIOR 6

DEPARTMENT OF JUSTICE 7

DEPARTMENT OF LABOR 8

DEPARTMENT OF OF STATE ANDOTHER INTERNATIONAL PROGRAMS 9

DEPARTMENT OF TRANSPORTATION 10

DEPARTMENT OF TREASURY 10

DEPARTMENT OF VETERANS AFFAIRS 11

CORPS OF ENGINEERS – CIVIL WORKS 11

ENVIRONMENTAL PROTECTION AGENCY 12

NATIONAL AERONAUTICS ANDSPACE ADMINISTRATION (NASA) 13

NATIONAL SCIENCE FOUNDATION 14

SMALL BUSINESS ADMINISTRATION 15

SOCIAL SECURITY ADMINISTRATION 15

BLANK ROME GOVERNMENT RELATIONS OFFICES

Watergate600 New Hampshire Avenue NW

Washington, DC 20037

One Logan Square130 North 18th Street

Philadelphia, PA 19103-6998

The Chrysler Building405 Lexington Avenue

New York, NY 10174-0208

for emergency war spending in Iraq andAfghanistan. The remaining $515.4 billion is$36 billion higher than FY08 spending. ThePresident’s budget will also:

• Provide a 3.4 percent basic pay raise formilitary personnel and a 2.9 percentraise for civilian employees;

• Allot $20.5 billion for continuingefforts to increase the size of the activeArmy to 547,400 and the Marine Corpsto 202,000;

• Grant $179 billion for operations andmaintenance, $125.2 billion for militarypersonnel, $104.2 billion for procure-ment, and $79.6 billion for research;

• Establish the new U.S. AfricaCommand (AFRICOM), which willstrengthen ties with African govern-ments, institutions, and organizationsto promote security and peace, with afunding level of $389 million;

• Provide $10.4 billion for missiledefense programs, $5.7 billion for spe-cial operations forces and $49.1 billionfor the National Guard and reserve;

• Designate $11 billion for seven newships — a Virginia class submarine, aDDG-1000 destroyer, two LittoralCombat Ships (LCS), two T-AKE auxil-iary dry cargo ships, and one Joint HighSpeed Vessel (JHSV) — an increase ofthree ships from FY08; and

• Appoint $40 million for the Readinessand Environmental Protection Initiative,which has protected over 48,000 acresaround military bases to date.

• Increase funding for the Special Supplemental NutritionProgram for Women, Infants and Children (WIC)—providing$6.1 billion for WIC services expected to reach an estimated 8.6million beneficiaries in 2009—advancing the administration’sgoal of childhood wellness and fitness and updating WIC foodpackages, while promoting fresh fruits and vegetables amongother things;

• Improve forest health by reducing the threat of catastrophicwildfires to communities and the environment by providing$297 million for hazardous fuels reduction projects—a morethan fourfold increase since 2000;

• Provides a $4.8 billion guaranteed single family housing loanlevel for more efficient and effective rural housing assistance —an increase of $659 million over FY08 — in order to maintainsingle family homeownership and eliminate more costly directhomeownership loans;

• Ensure the safety of meat, poultry, and egg products; and• Reduce the risk of plant and animal pests and diseases impact-

ing the United States.

Department of CommerceThe President’s budget for the Department of Commerce aims to

advance, technological innovation through the AmericanCompetitiveness Initiative, open new markets for exporters, protectintellectual property rights, obtain compliance with trade agreements,support the 2010 Decennial Census, enhance understanding of theplanet’s weather and climate, and improve stewardship of ocean andcoastal resources and wildlife. He allocates $8.9 billion for the depart-ment, with a discretionary budget of $8.2 billion. This is an increasefrom the prior fiscal year. The increase will mainly be seen in thebudget for the Census Bureau with its $2.6 billion increase as it pre-pares for the constitutionally required 2010 census. In addition, theproposed budget will:

• Provide $634 million for quantum and neutron research, nan-otechnology, and related scientific work at the National Instituteof Standards and Technology;• Open field offices and finalize the census system for the popu-

lation count in spring 2010;• Allot $981 million to develop and acquire vital weather satellites

and climate sensors — $31 million of this will be designated tonew initiatives to improve forecasts of severe weather, fires, anddroughts; and

• Fund the National Oceanic and Atmospheric Administration(NOAA) at $4.1 billion.

Department of DefenseThe President’s budget for the Department of Defense focuses on

supporting the national defense and funding America’s troops;preparing the force and developing capabilities for current and futurethreats; caring for the All-Volunteer Force, wounded warriors, andtheir families; and fortifying the infrastructure. The President requestsa discretionary budget of $585.4 billion, which includes $70 billion

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Department of EducationThe President designates a discretionary budget of $59.2 billion

for the Department of Education in FY09. His budget focuses onbuilding on the success of the No Child Left Behind Act; increasingaccess to higher education; ensuring federal education investmentsare targeted to high-performing programs; and supporting state andlocal leadership to improve the quality of education. Specifically, thebudget will:

• Provide $14.3 billion for Title I, which is the main source offunding for No Child Left Behind;

• Give School Improvement Grants $491 million to help turnaround schools in need of improvement plus reserve an addi-tional $570 million for School Improvement Grants in Title Ifunding;

• Supply “Pell Grants for Kids” with $300 million in funding thatenables low income students enrolled in low performing schoolsto attend a private or out-of-district public school;

• Contribute $1 billion to the Reading First program to providegrants to improve reading instruction at low-income schools;

• Increase funding to Pell Grants by $2.7 billion to a total of $16.9billion to help 10.9 million students pay for college; and

• Allow a 50 percent tax credit for the first $2,000 that moderate- andlow-income parents invest annually in 529 tuition-savings accounts.

Department of EnergyPresident Bush proposes a $22.3 billion fiscal 2009 budget that

boosts discretionary spending to $25 billion, 4.7 percent more thanthe current $23.9 billion fiscal budget. The Energy budget cuts fund-ing for solar power and energy efficiency improvement while boost-ing investment in nuclear power and “clean coal” technologies.Specifically the President’s budget will:

• Request $9.1 billion to consolidate and reduce the nation’snuclear weapons stockpile, and lessen the threat of both nuclearproliferation and deliveries of highly enriched uranium fromRussia by the end of 2010;

• Provide $241 million for the recently restructured FutureGenproject and other research methods that capture and store car-

bon from modern coal-burn-ing power plants;• Reduce overall funding by 27

percent, to $1.25 billion, forenergy and renewable energyprograms;

• Provide $818 million inresearch and development oftechnologies to burn coalmore cleanly; and

• Protect the economy against oil disrup-tions by doubling the capacity of theStrategic Petroleum Reserve, expandingit to 1.5 billion barrels at existing andnew sites.

Department of Health and Human ServicesThe President requests $737 billion for

the Department of Health and HumanServices, an increase of more than $29 bil-lion from FY 2008. The White House,acknowledging that Medicare solvency is atrisk and estimating it will be bankrupt in 11years, proposes that Medicare spendinggrowth be reduced from 7.2 percent to 5 per-cent for a total of $12.4 billion in FY09.President Bush has also requested nearly $4billion annually for 5 years for the StateChildren’s Health Insurance Program(SCHIP). Additionally, the President’s budg-et will:

• Provide $507 million to improveUnited States preparedness for aninfluenza pandemic and over $4.4 bil-lion to continue efforts to prevent andprotect the public from a bioterrorismattack;

• Provide $19.7 billion in SCHIP allot-ment increases through 2013 to pro-vide health insurance to children at orbelow 200 percent of the federal pover-ty level;

• Propose to modernize and improveMedicare by encouraging provider com-petition, improving fiscal sustainability,and improving program integrity;

• Enhance and reform Medicaid by pro-viding greater access to health insur-ance, increasing program flexibility andefficiency, and introducing tools tocombat waste, fraud, and abuse;

• Promote market-based healthcare byproviding $75 million in 2009 and2010 to help high-risk populationsobtain health insurance and encourag-ing the use of health saving accounts;

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• Provide $29 billion for the National Institutes of Health; and• Provide $7 billion to promote comprehensive, high quality edu-

cational, health, nutritional, and social services through HeadStart.

Department of Homeland SecurityPresident Bush requests a $40.1 billion budget for the

Department of Homeland Security that emphasizes strengtheningborder security,enhancing the secu-rity of the nation’stransportation sys-tem, reinforcingmaritime safety, for-tifying cyber securi-ty across the federalg o v e r n m e n t ,improving biowatchcapabilities andexpanding theFederal EmergencyM a n a g e m e n t

Agency’s (FEMA) operational capacity. The budget request is contro-versial, however, as congressional leaders from both sides of the aislehave expressed dismay with the President’s proposed cuts in home-land security first responder grants. Specifically, the President’s budg-et will:

• Provide $442.4 million to increase the number of Border Patrolagents by 2,200 and $5.7 billion for Immigration and Customsenforcement, a 12% increase;

• Enhance aviation security by devoting nearly $6 billion foradditional transportation security personnel and screeningtechnology;

• Provide $990 million to fund Integrated Deepwater Systems;• Support the Transportation Worker Identification Credential

(TWIC) by issuing more than 100,000 biometric cards toimprove port security;

• Enhance the U.S. Computer Emergency Readiness Team (US-CERT) by providing $242 million for additional networkdefense measures and increasing malware and intrusion analysiscapabilities; another $293.5 million is provided to protect feder-al computer networks against cyber attacks;

• Expand FEMA capabilities by updating information technologyand logistics system and improving emergency communications;

• Cut total grants for state and local responders to $2.2 billionfrom $4.1 billion in FY08; and

• Provide $7.1 billion for the Transportation SecurityAdministration.

Department of Housing and UrbanDevelopment

The Bush Administration’s FY09 Budgetrequests $38.5 billion for the U.S.Department of Housing and UrbanDevelopment (HUD) – a $3.2 billion or ninepercent increase over the President’s FY08request and $1 billion more than HUD’scurrent budget authority.

As he did in FY08, President Bush pro-posed cuts to popular housing programs. TheFY09 budget, however, does include someincreases for housing counseling, homelessassistance, and affordable housing programs.Congress will most likely push back on thePresident’s request to cut the CommunityDevelopment Block Grants (CDBG) pro-gram – a popular program with local andstate governments.

Specifically, the president’s HUD budg-et requests:

• A 22 percent reduction in funding from$3.8 billion in FY08, and $3 billion inFY09 for CDBG grants, which aregiven to local governments to promotecommunity and economic develop-ment;

• To terminate the Revitalization ofSeverely Distressed Public Housing(HOPE VI) program, which received$100 million in FY08;

• $65 million for HUD’s HousingCounseling Program, which providescounseling for homebuyers to combatforeclosures and is a 30 percent increasefrom FY08; and

• A $263 million increase in funding forthe HOME Investment Partnerships(HOME) Program, the largest federalblock grant program dedicated to creat-ing affordable housing for low-incomefamilies.

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Department of InteriorThe Department of Interior’s FY09 budget of $10.7 billion pro-

posed by President Bush maintains high levels of support for conser-vation and natural resource stewardship programs; advances initia-tives launched last year for national parks, healthy lands, safe Indiancommunities, and Indian education initiatives; and proposes newstrategic investments to address emerging environmental and resourcemanagement challenges. Specifically, the President’s budget will:

• Support the National Parks Centennial Initiative to prepare forthe 100th anniversary of the National Park System with $2.1 bil-lion;

• Increase U.S. energy independence and security opportunitiesby encouraging domestic energy exploration and productionincluding $9 million to research new locations in the forthcom-ing five-year offshore oil and gas leasing plan;

• Use $13 million to enhance knowledge of U.S. water resourceswith a water security initiative that partners with State and localagencies to promote the efficient use of water through a compet-itive grant process;

• Protect wildlife through joint conservation partnerships, includ-ing targeted actions to improve the status of migratory bird pop-ulations through cooperation with landowners, corporations,non-profit organizations, and the government of Mexico; and

• Decrease the amount of funds for the department’s Office ofSurface Mining (OSM) from $294 million last year to a pro-posed amount of $149 million this year.

Department of JusticeIn FY09, the Department of Justice is looking to counter the

threat of terrorism; further enable federal law enforcement to arrestand prosecute federal criminals; provide support to state and local lawenforcement efforts to combat violent crime; fight criminal activityalong the southwest border of the United States; and support federaldetention and incarceration programs. Justice would receive $23.7 bil-lion, with $20.3 billion in discretionary spending, under thePresident’s budget. PresidentBush did not include fundingfor the Edward ByrneMemorial Justice AssistanceGrant program or theCommunity OrientedPolicing Services (COPS) pro-gram in his funding request.Both programs are congres-sionally authorized throughfiscal 2009. The President’sproposed budget doesinclude:

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• $7.1 billion for the Federal Bureau ofInvestigation (FBI), with $361 milliondesignated for enhancements to theintelligence and counterterrorism pro-grams, in order to improve surveillancecapabilities, bolster response toweapons of mass destruction, and pro-tect the nation’s cyber systems;

• Funding for the FBI’s financial crimeinvestigations at $178 million to assistin combating identity theft and finan-cial fraud;

• An allotted $200 million for theViolent Crime Reduction PartnershipInitiative, which supports community-driven responses to violent crime;

• A designated $200 million for state andlocal criminal justice needs to be fund-ed through competitive grants;

• Funding to continue the fight against ille-gal drugs with $2.2 billion for the DrugEnforcement Administration (DEA) and$532 million for the Organized Crimeand Drug Enforcement Task Force(OCDETF); and

• A total of $5.5 billion for the Bureau ofPrisons and $1.3 billion for the Officeof the Federal Detention Trustee(OFDT).

Department of LaborThe Department of Labor’s budget looks

to protect workers’ wages, benefits, healthand safety, and union member rights;improve job training and trade adjustmentassistance programs; help returning servicemembers transition back to civilian jobs;safeguard workers’ pensions; and supportefforts to modernize and improve the tem-porary foreign labor certification process.Labor’s total proposed budget is $53.1 bil-lion, with $10.5 billion allotted for discre-tionary spending. Specifically, the budgetwill:

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• Designate $332 million for the Mine Safety and HealthAdministration to continue to protect the health and safety of350,000 miners;

• Fund the Occupational Safety and Health Administration with$502 million to enforce workplace safety and health standards;

• Reform the Department’s job training programs by consolidat-ing several programs into a state block grant program calledCareer Advancement Accounts, worker-directed accounts pro-viding job seekers up to $6,000 over two years for training;

• Provide job-search assistance for service members through theVeterans’ Employment and Training Service and TrainingAdministration; and

• Improve retirement security by implementing the PensionProtection Act of 2006 reforms.

Department of State and Other International ProgramsThe Bush Administration’s FY09 Budget requests $39.5 billion

for the U.S. Department of State ($26.1 million), the U.S. Agency forInternational Development(USAID; $11.2 billion), andother foreign affairs agencies($2.2 billion). This is a ninepercent increase over thePresident’s FY08 request,including increases in bilateraleconomic and military assis-tance, as well as foreign-serv-ice personnel.

Secretary of StateCondoleezza Rice is reported-ly behind the increase in fund-ing for international affairs related programs in an attempt to repairState Department programs that have been stretched thin by the con-flicts in Iraq and Afghanistan. The State Department is said to be try-ing to prepare better responses to future reconstruction and crisis sit-uations.

According to the Office of Management and Budget (OMB), thePresident’s request would provide $18.5 billion in discretionaryspending for the State Department and related agencies. This year’sforeign affairs appropriations would total approximately $22.2 billionif Congress provides the $5.4 billion in emergency funding requestedlast year.

Specifically, the President’s FY09 international affairs budgetrequests include:

• $938 million to strengthen USAID’soperations capacity – a significantboost;

• Seek more than 1,000 new officers atthe Department of State, and 300 atUSAID;

• $6 billion for the President’s globalAIDS initiative, $4.8 billion of whichfalls under international affairsaccounts;

• $2.3 billion to help Iraq, Afghanistan,Pakistan and West Bank/Gaza achievenecessary economic, democratic, secu-rity and political stabilization, as well asto advance their overall development;and

• $2.2 billion for the MillenniumChallenge Corporation.

Department of TransportationThe White House proposes a $68.1 bil-

lion budget for the Department ofTransportation. The budget requests $39.4billion for highways, a 4 percent reductionfrom FY08 that falls short of the funding lev-els promised by SAFETEA-LU. It also cutsAmtrak from $1.33 billion in FY08 to $800million, an amount the administration con-cedes is significant but considers necessary.The President’s budget seeks to modernizethe Federal Aviation Administration’s (FAA)air traffic control system and combat avia-tion and highway congestion. It intends toinvest in surface transportation without rais-ing taxes and improve transportation safety.Specifically, the President’s budget will:

• Fund the Next Generation AirTransportation System at $688 million,enabling the FAA to transition from aground-based surveillance system to amore accurate satellite surveillance sys-tem and develop more efficient air-space routes;

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• Propose FAA reforms such as establishing a cost-based financing sys-tem that employs market mechanisms for reducing travel delays andeliminating ticket taxes;

• Authorize the FAA to charge higher rates during peak hours toalleviate travel delay;

• Invest $175 million in alternative strategies for congestion pric-ing; and

• Promote and improve transportation safety by providing $191 millionfor the Federal Railroad Administration’s safety program and $93million for the Pipelineand Hazardous MaterialsSafety Administration’sPipeline Safety Program.

Department of the Treasury

The President’s 2009budget request for theTreasury Department amountsto $550 billion, an increasefrom the $522.5 billion budg-et in FY08. Much of the 5.3percent increase for FY09 is devoted to paying the interest on thenational debt. The budget seeks to maintain healthy and competitiveU.S. capital markets, increase revenue through more effective tax col-lection, enhance global economic security, and improve the govern-ment’s financial management. Specifically, the President’s budgetwill:

• Respond to the mortgage markets by partnering with the privatesector to assemble a group of lenders, loan servicers, mortgagecounselors, and investors to identify troubled borrowers andhelp them refinance or modify their mortgages;

• Propose 16 changes to existing tax laws to decrease the gapbetween taxes voluntarily paid on time and total taxes owed,including a new initiative that will require the reporting of auto-mated payments to support business income claims – changesestimated to generate $36 billion in new revenue over 10 years;

• Provide $7.5 billion for tax law enforcement initiatives, a 7 per-cent increase from FY08;

• Improve anti-money laundering and law enforcement initiativesthrough increased sharing of financial intelligence within theintelligence community; and

• Provide $25 million to improve the ability of the InternalRevenue Service to review and process electronic tax returns.

Department of Veterans AffairsPresident Bush requests a $93.7 billion

FY09 budget for the U.S. Department ofVeterans Affairs (VA). The request is $3.4 bil-lion more than the current VA budget andincludes $47.2 billion in discretionary fund-ing, mostly for health care, and $46.4 billionin mandatory funding for compensation,pension, educational assistance, home loanguaranties and other benefit programs.Specifically, the President’s 2009 Budget will:

• Provide military veterans with high-quality, comprehensive medical treat-ment including the design and con-struction of a state-of-the art-polytrau-ma center and increased funding forcontinual care for veterans with mentalhealth and substance abuse disordersand mental health issues, includingpost traumatic stress disorder (PTSD);

• Decrease turnaround time of veterans’receipt of benefits by cutting the dis-ability claims backlog and supportingpriority processing for returning com-bat veterans; and

• Ease the lifestyle transition for Veteransby improving collaboration with theDepartment of Defense to transfer per-tinent records between the two agen-cies, share medical information elec-tronically, process disability and otherclaims quickly and efficiently, and sup-port the transition from active duty tocivilian life.

Corps of Engineers—Civil WorksPresident Bush requests a total of $10.5

billion for the U.S. Army Corps of Engineersin FY09. The request directs $4.7 billion tothe Civil Works program and provides anadditional $5.7 billion in emergency fund-ing. “The budget funds the planning, designand construction of projects for the threemain water resources mission areas of the

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Corps, which are commercial navigation, flood and coastal stormdamage reduction, and aquatic ecosystem restoration, and gives prior-ity to those projects that will provide the highest returns on thenation’s investment,” stated John Paul Woodley, Jr., AssistantSecretary of the Army for Civil Works, at a press conference onFebruary 4. Specifically, Corps of Engineer budget includes:

• $2.4 billion for Operation and Maintenance;

• $1.4 billion for Construction;

• $240 million for Flood Control, Mississippi River andTributaries;

• $180 million for the Regulatory Program;

• $177 million for Expenses;

• $130 million for the Formerly Utilized Sites Remedial ActionProgram;

• $91 million for Investigations;

• $40 million for Flood Control and Coastal Emergencies; and

• $6 million for the Office of the Assistant Secretary of the Army,Civil Works.

Environmental Protection AgencyThe Environmental Protection Agency’s $7.14 billion FY09 budg-

et proposes to strengthen homeland security, urban areas aroundmajor ports, and nanotechnology research. It also proposes the largestenforcement budget ever. Specifically, the President’s FY09 Budget will:

• Clean up the nation’s most contaminated hazardous waste sites byproviding $1.3 billion for the Superfund program and $39 million forthe Resource Conservationand Recovery Act cleanupprogram;

• Encourage economicdevelopment by promot-ing business investmentat abandoned industrialsites;

• Coordinate protectionof critical water infra-structure by adding $35million to support WaterSecurity activities and by evaluating pilot systems participatingin the Water Security Initiative; and

• Help state and local governments finance wastewater and drink-ing water infrastructure. Specifically, the administration requests$555 million to meet its commitment to provide the CleanWater State Revolving Fund (SRF) a total of $6.8 billion

between 2004-2011. In the future, theClean Water SRF will provide an annu-al average of $34 billion in loans forwastewater infrastructure.

National Aeronautics and SpaceAdministration (NASA)

President Bush’s budget requests $17.6billion for NASA, a 3 percent increase overthe current budget. The budget continuesthe agency’s trend of favoring human space-flight programs while cutting science andaeronautics programs. Specifically, thePresident’s budget will:

• Develop new commercial services byproviding $173 million for successfuldemonstrations of private-sector servic-es to transport cargo to theInternational Space Station and $2.6billion over five years to purchase trans-portation services to the Station;

• Reduce the New Millennium technolo-gy demonstration program by $54 mil-lion due to its limited results, freeingfunds for efforts to further developsatellite technology and scientificinstruments;

• Promote our understanding of theEarth by allocating $1.4 billion—$6.3billion over five years—to embark on aseries of high-priority, space-basedEarth observation research missionsthat will advance understanding of thecauses and consequences of changes toEarth’s climate, oceans, and land sur-faces;

• Provide funding to build rockets andspacecraft that will enable NASA toexplore the solar system; and

• Enable breakthrough aeronautics tech-nologies by providing $447 million todevelop cheaper, safer, cleaner, andmore convenient air travel solutions.

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National Science FoundationUnder President Bush’s budget plan, the National Science

Foundation (NSF) would receive $6.8 billion, a 13 percent increasefrom the current funding level. The President is keeping with his planto increase math and science research and education, which he firstcalled for in his 2006 State of the Union address and reiterated in thisyear’s address. Specifically, the President’s budget will:

• Promote student pursuit of advanced degrees by providing $125million, a 30-percent increase, for the NSF-wide graduateresearch fellowship program, which recognizes and supports out-standing graduate students who are expected to significantlycontribute to research, teaching, and future innovations in sci-ence and engineering;

• Maintain and extend the life of current facilities by providingnearly $1 billion for the ongoing operation and maintenance ofmajor research facilities, including a research vessel fleet, astro-nomical telescopes, geological and environmental monitoringnetworks, and the NSF-owned and operated South Pole Station;

• Promote investment in new technologies by providing $397 mil-lion for nanotechnology research and facilities, $1.1 billion forfundamental information technology research and cutting-edgesupercomputing and networking resources (including $100 mil-lion for an NSF-wide effort to develop radically new computa-tional concepts and tools) and $30 million for a new targetedcyber-security research effort in privacy, fundamental theory,and usability;

• Construct key new scientific facilitiesincluding $148 million for the designor construction of four major new cut-ting-edge research facilities in astrono-my and physics and $115 million fora diverse portfolio of smaller-sizedinstruments and tools; and

• Support a state-of-the-art computinginfrastructure for a widely accessiblesuite of supercomputers, data ware-houses, advanced networks, andexperimental facilities.

Small Business AdministrationThe Bush Administration’s FY09 Budget requests $657 for the

Small Business Administration (SBA) – a 15 percent increase overFY08’s budget authority. Most of the difference in funding levels,however, is due to funding for disaster loans, which were not includ-ed in the FY08 budget because the agency had sufficient carryoverfunds from previous years to pay for disaster lending through the cur-

rent year. The budget requests $381.6 millionfor SBA’s core operating costs, whichincludes funds for daily operations andmandatory items such as rent and telecom-munications.

Since President Bush took office in 2001,the SBA has suffered a 27 percent decrease indiscretionary funding. According to OMB,SBA has lost more than any other federalagency. In recent years, however, Congresshas restored some of the SBA’s funding.

The President’s FY09 SBA budgetwould:

• Reduce funding for small businesscounseling programs;

• Cut funding for Small BusinessDevelopment centers by $10 million;

• Cut $1 million from the Women’sBusiness Centers; and

• Eliminate $17 million in subsidies forthe SBA’s microloan program.

Social Security AdministrationThe Bush Administration’s FY09 Budget

provides a $584 million increase in adminis-trative spending for the Social SecurityAdministration (SSA) over FY08 levels. Thisincreased spending request is mostly aimedat cutting into the backlog of disability ben-efit claims at the SSA. According to reports,the SSA currently has approximately 750,000pending applications for hearings on disabil-ity claims. The SSA would like to hire hun-dreds of new administrative staff to helpreduce this number.

In addition to reducing the backlog ofdisability benefit claims, the President’sFY09 SSA budget would:

• Allow the SSA to continue to improveits retirement and enumeration process-es and safeguard personally identifiableinformation; and

• Allow the SSA to make automationand business process changes.

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