Bush to Push $2.7-Trillion Budget Through Shaky Congress

Medicare provider cuts to be sought

In President Bush’s $2.7-trillion budget, which he presents to Congress Monday, he hopes to seize momentum from a just-completed deficit reduction package to get as much as $40 billion in savings from Medicare service providers over the next five years.

But last Wednesday’s 216-214 vote for the deficit-reduction bill, which heavily depended on Medicare and Medicaid cuts, may leave the House with little zest for further budget battles.

Bush also proposes more increases in Medicare premiums for high- income people, beyond those slated for next year.

Medicare spending totaled $333 billion last year. Without changes, it will climb to $445 billion in 2007 .

The rest

A virtual standstill

Exception: The budget will ask virtually all domestic departments except Homeland Security to operate at or below current budget levels.

Health care research: The National Institutes of Health would be frozen at about $28 billion.

Homeland Security: Would get a 6 percent boost to $35.3 billion, funded by proposed new air travel fee of $5 each way.

The Pentagon: Would get a 5 percent boost, to $439.3 billion, plus $120 billion for operations in Iraq and Afghanistan.

Hurricane relief: Will ask for $15 billion more.

A house divided

GOP searches soul

Rep. John Boehner, R-Ohio, staged a surprise victory Thursday over Rep. Roy Blunt, R-Mo., in the race for majority leader.

The Jack Abramoff scandal has prompted some “soul-searching” about the GOP agenda.

Republicans hoped to kick off this week with a big lobbying reform package, but a sharp debate arose over how far reforms should go. The proposal has been delayed a week.

The budget and spending bills split the party in 2005, pitting fiscal conservatives against those who would protect key social programs.

To overcome Congress’ inertia, Bush will spend this week pushing for fiscal restraint. He speaks to a New Hampshire business group Tuesday and signs the new deficit-reduction bill Wednesday.

Bush may get help on earmarking. Congress seems ready to rein in the practice of attaching home-state projects – alias “pork” – to the 13 annual appropriations bills.

The number of earmarks has grown from 4,155 valued at $29 billion in 1994 to 14,211 worth $53 billion in 2004.

Budget deficit

Options limited

Under a Republican president and Congress, national security and entitlement spending has skyrocketed without other cuts, causing a deficit set to hit $337 billion this year.

How the budget is spent:

About 60 percent: “Fixed” spending on interest payments and entitlement programs such as Social Security, Medicare and Medicaid.

About 20 percent: Defense and homeland security.

About 18 percent: All others (such as education, environmental programs, transportation).

Sources: Associated Press, New York Times, Washington Post, St. Louis Post-Dispatch.

– Compiled by Mark Watson