White House seeks to make case for programs cuts

By Caren Bohan

WASHINGTON (Reuters) – The White House defended reductions
in programs from veterans healthcare to housing on Thursday as
it sought to persuade a reluctant Congress to enact its
proposals for 141 domestic spending cuts.

President George W. Bush, who unveiled a $2.77 trillion
budget for fiscal 2007 on Monday, said the government could
save nearly $15 billion from the cuts.

The proposals include requiring that higher-income veterans
pay more for their medical care, eliminating a writing program
in public schools and the consolidation of housing programs.

The White House says the cuts target programs that were
either not performing well or not fulfilling important
functions.

But the proposals have gotten a wary reception in Congress,
with Democrats lashing out at Bush for pushing tax cuts for the
rich while reducing programs for the poor and middle class.

Even prominent members of Bush’s Republican party
criticized his budget.

House Appropriations Committee Chairman Jerry Lewis
complained about “fees and gimmicks,” which he said the White
House knows Congress will again reject, but give Bush leeway to
propose spending increases in favored areas such as defense.

“These proposals make a difficult appropriations season
even harder,” said the California Republican, who must steer a
series of spending bills through Congress this summer that
uphold a budget blueprint Republicans hope to pass.

Of the savings proposals, 22 of the 141 are new. The rest
revive reductions that Congress either rejected or adopted only
in part last year.

ARRAY OF CUTS

Following are details on some of them:

* A monthly food package to help poor women, children and
the elderly would be eliminated. The White House said part of
its mission overlaps with the more effective nutrition program
for Women, Infants and Children. It said the elderly could
receive temporary benefits and be shifted to food stamps.

* Nineteen small education plans such as a writing program
and one for economic education would be terminated. The White
House said states can support the activities through federal
grants giving them the discretion on how to spend the money.

* A program to provide block grants to states to improve
juvenile justice system would be eliminated. The administration
said the program has not been effective and is not needed with
crime at historic lows.

* The White House would cut $30 million from an Internal
Revenue Service modernization program that will encourage more
electronic filing and use of the Internet for tax services. The
White House said the program has had some success but is moving
ahead more slowly than expected.

* A program for public-housing modernization and renovation
would be reduced by 11 percent, with the savings redirected
toward programs such as housing block grants for states and
rental assistance.

* A program of revolving loans for clean water programs for
states would be pared back. The administration said that over
the past three years Congress has given the program more money
than requested and therefore it needs less funding in 2007.

* The White House would require higher-income veterans with
no disabilities to pay a $250 annual enrollment fee for medical
care and raise co-pays for their drug purchases to $15 from $8.
The administration said the change would allow the veterans’
health program to focus on its core mission of helping poor
veterans and those with special needs or disabilities.

(Additional reporting by Richard Cowan)