2008 Budget

Fact H Sheets
A Balanced Budget By 2012, While:
HKeeping the Economy Strong and Taxes Low HSpending Taxpayer Dollars Wisely
HCombating Terrorism and Protecting the Homeland

F e b r u a r y 2 0 0 7
 THE PRESIDENT’S 2008 BUDGET
Reducing Deficits Each Year and Balancing the Budget by 2012

The President’s FY2008 Budget reduces the deficit each year and reaches a balanced budget within five years. A
strong economy and better spending restraint will help us achieve this goal, while continuing to invest in the
Nation’s prosperity and security.

Keeping the Economy Strong

¾ The Budget makes tax relief permanent to ensure our strong economic growth continues.
¾ Since the President’s tax relief took effect, increased innovation and investment has created more than 7
million new jobs, and helped boost wages.
¾ Pro-growth polices that focus on providing quality education, affordable health care, energy security, and
making Americans more competitive will sustain economic growth and prosperity for future generations of
all Americans.

Spending Taxpayers Dollars Wisely

¾ The Budget holds the growth in non-security discretionary spending to one percent, well below the rate of
inflation.
¾ Budget reforms, including comprehensive earmark reform and a legislative line-item veto, will help
eliminate wasteful and unnecessary spending.
¾ Sensible reforms are needed to slow the unsustainable growth of entitlement spending.

Combating Terrorism and Protecting the Homeland

¾ The Budget supports our troops fighting terrorism, strengthens our military for the future, supports our
efforts on the diplomatic front and protects our homeland from attack.
¾ This Budget improves the timeliness and specificity of the information provided to Congress and the
American public about the cost of the war.
¾ It shows the full cost of the war through the rest of the President’s term – and also provides detailed
justifications.
 BUDGET DISCIPLINE
The President’s 2008 Budget will focus on four major reforms to spend tax dollars wisely and
keep America’s economy strong:
• Balance the Budget through pro-growth policies and spending restraint;
• Enact common-sense reforms to help prevent billions of taxpayer dollars from being spent on
unnecessary earmarks;
• Reform entitlement programs to address the longer-term fiscal challenge facing our country;
• Hold the rate of non-security-related spending to one percent, well below the rate of inflation.

Balance the Budget through pro-growth policies and spending restraint: The five-year budget
proposal will reduce the deficit over the next five years and produce a balanced budget by 2012. The
Budget will achieve balance while addressing the Nation's most critical needs, including support for the
Global War on Terror and sustaining the strength of our economy through permanent tax relief.
• The President's tax relief has spurred robust economic growth, millions of jobs, and rising wages.
• A strong U.S. economy is fueling higher tax revenues. Tax revenues rose 11.8 percent in FY 2006
following a 14.5 percent increase in FY 2005. Receipts have increased 35 percent since the tax
relief was fully implemented in 2003, and 70 percent of the reduction in the deficit from initial
projections last year was attributable to increased tax revenues.
• The deficit has been cut in half three years ahead of the President's 2009 goal. Historic revenue
growth and a continued commitment to spending restraint contributed to this reduction.
• Better spending restraint is necessary to help achieve a balanced Budget. While funding the
Nation's priorities, we must keep spending under control. That means restraining spending growth,
doing more with less, and eliminating programs that are not getting the job done.

Enact common-sense reforms to help prevent billions of taxpayer dollars from being spent on
unnecessary earmarks:
• Earmark Reform: Earmarks are provisions included in legislation that are often not subject to
legislative or public scrutiny and that often lead to wasteful Federal spending. Earmarks have
tripled in number over the last decade and have increased spending by billions of dollars. The
President applauds Congress' progress in requiring the disclosure of the sponsors, costs,
recipients, and justification for each earmark, and calls on Congress to go further by enacting
comprehensive earmark reform that brings greater transparency and accountability to the
Congressional budget process, including:
o Stopping the practice of concealing earmarks in so-called report language instead of
placing them in the actual language of the bill; and
o Eliminating wasteful earmarks and cutting the number and cost of all earmarks at least in
half by the end of this session.
• Legislative Line Item Veto: The legislative line item veto is a powerful tool that will help eliminate
wasteful spending and strengthen transparency, while preserving the role of the legislative branch.
The President strongly urges Congress to enact this common-sense provision that will help the
executive and legislative branches work together to eliminate unjustified spending provisions.
Reform entitlement programs to address the longer-term fiscal challenge facing our country:
Balancing the Budget through pro-growth economic policies and spending restraint better positions us to
tackle the longer-term fiscal challenge facing our country – reforming entitlements. Reforming Social
Security, Medicare, and Medicaid will enable future generations to benefit from these vital programs without
bankrupting our country. The President has led the way in focusing attention on this problem and in
promoting real solutions, and passing legislation to enact such reforms will require bipartisan cooperation.

Hold the rate of non-security-related spending to one percent, well below the rate of inflation:
• Program Review: During the formation of the 2008 Budget, each and every program was closely
reviewed and required to demonstrate alignment with the Nation’s top priorities as well as whether
the program was producing the intended results. Failure to meet these criteria resulted in a
proposed termination or reduction, which helped maintain a sensible rate of spending increase and
channel resources to programs that are high priority and deliver important results for taxpayers.
• Program Integrity: The Budget also increases resources for program integrity efforts to reduce
waste, fraud, and abuse – including from improper payments in major programs to ineligible
recipients.
 INCREASING GOVERNMENT'S CAPACITY TO
DELIVER RESULTS
With the help of the President’s Management Agenda (PMA), Federal agencies have significantly
improved their ability to be more effective.

Performing Better: The Office of Management and Budget and the agencies have systematically
reviewed the performance of virtually all Federal programs using the Program Assessment Rating
Tool. Reviews with this diagnostic tool help ensure that all programs have clear, specific
definitions of success, performance measures to track that success, concrete improvement plans,
and use performance as a key basis for management and budget allocation decisions:
• 82 percent of programs have established or clarified their long-term and annual
performance goals that focus on the outcome important to Americans;
• 80 percent of programs are achieving their performance goals, at least minimally;
• 69 percent of programs are improving efficiency annually.

Improving Human Capital Management: Agencies and employees are working together to
develop clearer goals for each employee, identify the critical skills needed to achieve agency
missions, and ensure the workforce has the skills required to meet these goals.
• Agencies have reduced gaps in skills from 5 percent to 1 percent since 2001;
• Approximately 64 percent of employees are now hired within 45 days;
• Agencies are implementing better performance management practices that will help them
better manage, develop, and reward employees.

Using Information Technology More Effectively: The PMA has helped agencies establish the
disciplines to use their IT more effectively.
• Agencies met 86 percent of their E-Government implementation milestones in FY 06,
accelerating the benefits derived from implementing and utilizing common IT solutions;
• 46 percent of agencies are professionally managing their IT systems, up from 28 percent
in 2005, and, on average are accounting for and achieving at least 90 percent of their cost,
schedule, and performance goals.

Improving Financial and Real Property Management: To ensure managers have current and
accurate financial information for decision making, agencies have strengthened their financial
management practices. For example:
• In 2006, for the second straight year, every agency had the financial disciplines in place to
complete its Performance and Accountability Report within 45 days of the end of the fiscal
year, which is faster than the private sector and more than three months faster than it used
to take;
• 19 out of 24 major agencies earned clean audit opinions and reduced the number of
“material weaknesses” reported from 62 in 2001 to 41 in 2006;
• Agencies have, for the first time, installed systems to manage their real property
investments and costs. They have also disposed of the first $4.2 billion of $15 billion in
unneeded property that has been identified.
Using Competition to Get the Best Service at the Lowest Cost to Taxpayers: Federal
managers use public-private competitions to make common-sense decisions on how to better
serve taxpayers.
• Competitions completed during the last four years are expected to save taxpayers more
than $1 billion per year;
• Agencies will be able to reduce their costs by more than $6 billion per year by using public-
private competitions to ensure all their commercial activities are performed most efficiently.

Eliminating Improper Payments: Agencies are improving the accuracy of Federal payments.
• Agencies have reduced their improper payments by nearly $9 billion or 20 percent -
bringing the amount of improper payments in the 30 programs originally reported in FY
2004 from the baseline of approximately $45.1 billion to $36.3 billion in FY 2006;
• By 2008 all high-risk programs will report error measurements.

Focusing on Greater Effectiveness:

• The Administration is using the President’s Management Agenda scorecard to clearly and
publicly define what management improvements are desired, hold agencies accountable
for achieving them, and publicly assess whether agencies are improving to meet these
goals.
• Similarly, www.ExpectMore.gov helps ensure agencies use their new management
abilities to improve their effectiveness. The assessments of virtually all Federal programs
are made public to increase accountability to Congress and the taxpayers for achieving the
performance that has been promised.
• Finally the Administration is using a redesigned www.Results.gov to convince Congress,
Federal employees, and interested parties that greater government effectiveness is the
norm, and the mission of the President’s Management Agenda.
 THE ECONOMY
The President’s 2008 Budget is committed to pursuing pro-growth polices to sustain economic
prosperity for all Americans by:
• Making the tax relief permanent;
• Spending taxpayer dollars responsibly;
• Accelerating scientific progress with the American Competitiveness Initiative;
• Opening new markets;
• Making health care fairer, more affordable, more accessible and flexible;
• Promoting diversified energy sources and using alternative fuel; and
• Investing in education.

• Making the tax relief permanent: The President's tax relief reduced taxes for every American who
pays income taxes. To keep our economy growing the tax relief should be made permanent.
o Since the President’s tax relief took effect:
ƒ Business investment increased dramatically;
ƒ Millions of jobs have been created; and
ƒ Average wages for American workers have risen.

• Spending taxpayer dollars responsibly: Balances the budget through pro-growth policies and
spending restraint and enact common-sense reforms to help prevent billions of taxpayer dollars from
being spent on unnecessary earmarks. Expands program integrity activities with proven track records
for reducing improper payments and eliminating other forms of waste.

• Reform entitlement programs to address the longer-term fiscal challenge facing our country:
Reforming entitlement programs such as Social Security, Medicare, and Medicaid will spare future
generations from huge tax increases, and make these programs permanently sound.

• Accelerating scientific progress with the American Competitiveness Initiative: Increases funding
for the American Competitiveness Initiative and stays on track to double critical basic research in the
physical sciences over ten years to help keep America the most innovative and competitive economy
in the world. Over 10 years, the ACI proposed an increase of nearly $50 billion in innovation-enabling
research in the National Science Foundation, the Department of Energy, and the Department of
Commerce's National Institute of Standards and Technology.

• Opening new markets: Expands opportunities for American workers and helps impoverished nations
by eliminating barriers to U.S. products and developing free trade.

• Making health care fairer, more affordable, more accessible and flexible: Makes health care
available and affordable through the President's proposed standard deduction for health insurance and
the Affordable Choices Initiative for States.
• Promoting diversified energy sources and using alternative fuel: The President’s Twenty in Ten
Plan increases and expands the current renewable fuels standard of 7.5 billion gallons in 2012 to a
new alternative fuel standard of 35 billion gallons, requiring renewable and alternative fuels in 2017.
Combined with the Administration’s proposal to improve and reform Corporate Average Fuel Economy
(CAFE) standards, the President’s plan will reduce our projected domestic gasoline consumption by 20
percent in 2017, and help reduce our projected gasoline-related greenhouse gas emissions by as much
as 170 million metric tons.

• Investing in education: Builds upon the successes of No Child Left Behind, ensuring that parents and
students have opportunities to select higher performing schools and help make college more affordable
by providing additional grant aid to the students who need it most.
 DEFENSE
The President’s 2008 Defense Budget will support our men and women in uniform and transform
the military for 21st century threats:
• Supporting operations in the War on Terror
• Developing capabilities to meet future threats;
• Defending the homeland;
• Supporting the all-volunteer force and their families; and
• Strengthening the U.S. intelligence community.

The President’s 2008 Budget provides $481.4 billion for the Department of Defense’s base budget –
a 62 percent increase over 2001. In addition to base funding, the request includes $93.4 billion in
supplemental appropriations for 2007, and an additional $141.7 billion in 2008. It also includes a
$50 billion allowance for 2009. This combined request will ensure a high level of military readiness,
enabling the Department to respond to evolving and adaptive enemies, while sustaining traditional
advantages in U.S. conventional warfighting capabilities by:

Supporting operations in the War on Terror: As a nation at war, the top priority is to ensure
servicemembers have the resources necessary to fight and succeed in the War on Terror. To date, $426.8
billion has been provided in supplemental appropriations for the War on Terror; the 2007 and 2008 request
would increase this amount to $ 661.9 billion.

INCREASING SUPPORT FOR DEFENSE OPERATIONS IN THE WAR ON TERROR

(in billions of dollars)

Enacted Enacted Request

Total
2001 2002 2003 2004 2005 2006 2007 To Date 2007 2008
9.3 8.3 62.2 62.0 100.5 114.5 70.0 426.8 93.4 141.7 661.9

Developing capabilities to meet future threats: Even as DoD focuses on military operations in Iraq and
Afghanistan, it must prepare for future challenges and conflicts through organizational and technological
transformations.
• Additional permanent forces: Increase the size of the Army from 482,400 to 547,400 by 2012 and
Marine Corps from 175,000 to 202,000 by 2011 to reduce stress on active duty and reserve forces.
• Reorganizing the Army: $7.6 billion in 2008 to continue the Army’s transformation from a division
centric force to a modular, flexible force, including the deployment of new Stryker vehicles and
upgrades to existing aircraft.
• Expanding Special Operations Command: $6.2 billion, which will strengthen and expand the Special
Operations Command (SOCOM) by adding 3,000 special operators in 2008 and 10,000 special
operators over the next five years without compromising training standards.
• Building partnership capacity: $500 million for building international partnerships and enhancing the
military’s ability to train and equip allies and provide humanitarian assistance.
• Aligning infrastructure and requirements: $8.2 billion for DoD to continue its efforts to meet the
recommendations accepted by the Base Realignment and Closure Commission.
• Adjusting global posture: $1.0 billion in 2008 and $5.3 billion by 2012 to continue to fund an overall
restructuring of the military by shifting Cold War bases to new areas of strategic importance.
• Improving technology to support our troops:
 o Increase the Predator Unmanned Aerial Vehicle force to 170 aircraft.
o Provide $14.2 billion for Navy shipbuilding, including the first of a new class of aircraft carriers
and three Littoral Combat Ships.
o Support new global capabilities by providing $315 million for a new Air Force tanker, $175
million for conventional Trident missiles, and $310 million for a missile defense site in Europe.

Defending the Homeland: Provides the resources necessary to deter, detect and defeat attacks against
the U.S., its citizens and its infrastructure.
• Cooperative Threat Reduction Program: $348 million will fund the completion of a chemical weapons
destruction facility, provide security upgrades at a Russian warhead storage site and improve nuclear
detection capabilities at borders and ports in the former Soviet Union.
• Missile Defense Agency: $8.9 billion to develop new systems and improve upon existing land and sea
based missile defense systems that protect the United States.
• National Guard and Reserve: $43 billion to recruit, man, train, operate, and equip National Guard and
Reserve forces that provide critical military capabilities both at home and abroad.

Supporting the all-volunteer force and their families: Continues to ensure servicemembers have the
best training and equipment while maintaining a high quality of life for servicemembers and their families
and providing the finest treatment, rehabilitation, and future opportunity for personnel wounded in action.
• Compensating servicemembers: Includes a three percent pay raise, bringing the total basic pay
increases since 2001 to nearly 32 percent. In addition the Administration has added retention bonuses
for servicemembers deployed in support of Operations Iraqi Freedom and Enduring Freedom, and
enhanced pay, commissary, education and health benefits are made available for all reservists
activated for war.
• Supporting the Severely Injured Support Center: $45 million for counseling, assistance and advocacy
for wounded servicemembers.
• Providing access to health care: $20.6 billion plus $1.9 billion in revenue proposals for the Defense
Health Program to provide servicemembers and their families with high quality medical care.

Strengthening the U.S. Intelligence Community: Continues robust funding of the Intelligence
Community, focusing on human and signals intelligence, data processing, and analytic capabilities.
• Central Intelligence Agency: Make progress towards the goal of increasing the number of case officers
50 percent and achieves that goal for analysts.
• Office of the Director of National Intelligence: Sustain implementation of the Intelligence Reform and
Terrorism Prevention Act and the Presidentially-approved recommendations of the 9-11 and Weapons
of Mass Destruction Commissions.
• Information sharing environment: Improve coordination among agencies that support the War on Terror
including information sharing between Federal, State and local authorities.
 GLOBAL WAR ON TERROR
President Bush transmitted to Congress a request for additional funding to continue the Global War
on Terror through the end of this fiscal year and a detailed estimate for 2008 funding, including
those funds needed to address extraordinary emergency requirements. These requests will ensure
U.S. military forces can successfully carry out the Global War on Terror missions. This funding will also
build on current efforts to train Iraqi and Afghan military and police units and assist both countries in
promoting national reconciliation and spurring economic growth. The request includes:

Components of War on Terror Requests ($ in billions) 2007 2008 2009

• Department of Defense (includes Classified activities) $93.4 $141.7 $50.0
• Department of State and other international operations 6.0 3.3
• Other agencies 0.2 0.3
Total $99.6 $145.2 $50.0

Funds requested in 2007 are in addition to the $70 billion already enacted by Congress for the War on
Terror this year. For the first time, the President’s budget contains the estimated, full-year costs of the war
in 2008, as well as another $50 billion in 2009.

Providing the Resources to Win the War on Terror in Iraq and Afghanistan:
• Ongoing Military Operations: The President is committed to providing our troops with the resources
and equipment they need. The request honors this commitment with –
o $43.4 billion for 2007 and $74 billion for 2008 for ongoing military and intelligence
requirements in Operation Enduring Freedom and Operation Iraqi Freedom.
o $10.4 billion for 2007 and $15.2 billion for 2008 to provide greater force protection to U.S.
military forces including countering improvised explosive devices.
o $1.5 billion for 2007 and $2.7 billion in 2008 to support coalition partners and the
Commander’s Emergency Response Program that provides urgent humanitarian relief.

Supporting and Expanding our Diplomatic Presence in Iraq and Afghanistan: The President’s request
includes $877 million in 2007 and $1.9 billion in 2008 for the extraordinary security and operating costs to
support U.S. embassy operations and diplomatic activity in Iraq and Afghanistan, including doubling our
civilian presence outside of the “Green Zone” in Iraq. The request includes $35 million in 2007 to continue
the Special Inspector General for Iraq Reconstruction oversight activities.

Strengthening Iraqi Self-Reliance:

• Helping Iraqis Take the Lead: The President is committed to helping the Iraqis implement their plans to
support security, promote national reconciliation, and spur economic growth.
o The President is requesting $5.6 billion to deploy reinforcement of more than 20,000 additional
soldiers and Marines to Iraq to help Iraqi forces to clear and secure neighborhoods, and serve
as advisers embedded in Iraqi Army units. With Iraqis in the lead, our forces will help secure
the city of Baghdad by chasing down the terrorists, insurgents, and the roaming death squads.
Included in the reinforcement total are 4,000 Marines that will be sent to Anbar Province to find
the terrorists and clear them out.

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 o The President requests $3.8 billion in 2007 and $2 billion in 2008 to accelerate training for the
Iraqi security forces so they can take on responsibility for the security of their country.
o The request includes $2.3 billion in 2007 and $966 million in 2008 in foreign assistance to Iraq
and complements Iraq’s plan to spend $10 billion in 2007 on capital infrastructure and
reconstruction projects. The U.S. funding will: strengthen local and national government
capacity to better serve the Iraqi people; create new jobs that will augment the Iraqi jobs
program; and assist and protect Iraqi refugees in neighboring countries and displaced persons
within Iraq. As previously noted, the request also includes $350 million in 2007 and $767
million in 2008 for the Commander’s Emergency Response Funds to enable commanders to
respond to humanitarian and reconstruction requirements. The deployment of civilians with
military forces will help commanders use these resources effectively and in concert with other
civilian programs.

• Classified Activities: The requests include $3.6 billion in 2007 and $5.9 billion in 2008 for classified
military and intelligence activities, including the National Counterterrorism Center.
• Other agencies: The requests include $176 million in 2007 and $147 million in 2008 for FBI and other
Department of Justice anti-terrorism efforts in Iraq, Afghanistan, and the United States and to support
the work of the Iraq Threat Finance Cell.

Ensuring Our Armed Forces Remain Well-Equipped And Organized:

• Repairing and Replacing Damaged Equipment: The President requests $13.9 billion in 2007 and $37.6
billion in 2008 to refurbish or replace equipment worn out or damaged through use in Operation
Enduring Freedom and Operation Iraqi Freedom. This funding is critical to keeping deployed forces and
those next to deploy well equipped and ensures military readiness for future threats.

Stabilizing Afghanistan Against the Insurgency:

• Security Forces: The President requests $5.9 billion in 2007 and $2.7 billion in 2008 for expedited
training of the Afghan security forces. Activities include training, equipping, personnel support, and
developing the capacity of government ministries to maintain forces.
• Supporting Critical Reconstruction Needs: The President is committed to strengthening the
Government of Afghanistan and improving the quality of life of the Afghan people. To this end, the
request includes $698 million in 2007 and $339 million in 2008 to build roads in districts and provinces
targeted by the insurgents, expand power supply to priority locations, intensify rural development
efforts in poppy-producing provinces, provide food aid and strengthen national and local governance.
As previously noted, the request also includes $106 million in 2007 and $211 million in 2008 for the
Commander’s Emergency Response Funds to enable commanders to respond to humanitarian and
reconstruction requirements. Accelerating reconstruction efforts is a critical component of the strategy
to stabilize the country against the Taliban and other insurgents.

Preventing weapons of mass destruction from falling into the hands of terrorists:
• The President requests $63 million in FY 2007 and $50 million in FY 2008 to accelerate U.S. efforts to
secure vulnerable nuclear and radioactive material overseas from diversion or theft by terrorists or
states of concern

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Expanding the Force:
• Building U.S. military capacity: The requests include $5.3 billion in 2007 and $1.6 billion in 2008 to
accelerate two brigade combat teams for the Army, add a regimental combat team to the Marine
Corps, and begin investing in the equipment and infrastructure necessary to outfit and house new
personnel to be recruited in 2008. These investments will increase the total deployable force and
therefore reduce the strain on the force.

Strengthening Lebanon:
The President’s request includes $770 million in 2007 for a comprehensive economic and security package
to support the democratic government of Lebanon, including $300 million in economic assistance, $286
million in security assistance and $184 million to support the United Nations Peacekeeping Force (UNIFIL).

Fighting Avian Influenza:

The supplemental provides $161 million in 2007 to improve preparedness, surveillance and detection to
enhance international capabilities and enable foreign governments around the world to more quickly
respond to H5N1 out breaks wherever they occur.

Winning the War of Ideas, Promoting Good Governance and Providing Emergency Humanitarian
Relief and Peacekeeping support:
• Winning the War of Ideas: The request includes $50 million in 2007 to increase outreach to the Muslim
audiences with additional television programming, expanded education and cultural exchanges, and
enhanced public diplomacy programs.
o Sudan: The President is committed to improving the security situation in Darfur and in
implementing the Comprehensive Peace Agreement in Southern Sudan. The request includes
$362 million in 2007 for emergency humanitarian assistance, emergency food aid, and
peacekeeping needs in Darfur and Southern Sudan.
o Somalia: The 2007 request includes $40 million for peacekeeping operations and $20 million
for humanitarian aid to stabilize the humanitarian and security situation in Somalia.
o Kosovo: The supplemental includes $279 million in 2007 for a one-time assistance package to
be provided after resolution of Kosovo’s status to promote stability and economic growth,
enable quicker reduction of U.S. troop presence in Kosovo, prevent additional debt-service
costs, and leverage greater contributions from other donors.

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 HOMELAND SECURITY
The President’s 2008 Budget will secure the homeland by:
• Prioritizing comprehensive immigration reform;
• Protecting all modes of transportation from attacks by terrorists;
• Preparing the Nation for public health emergencies;
• Protecting the homeland from nuclear threats and improving chemical security; and
• Providing a stronger federal response to all hazards, including acts of terrorism.

Prioritizing comprehensive immigration reform: The Administration is dedicated to comprehensive

reform of America’s immigration laws by increasing border security and interior enforcement, and working
with Congress to establishing a Temporary Worker Program without animosity and without amnesty.

The 2008 Budget makes good on the President’s commitment to tighten security at our borders:
• Hiring 3,000 new Border Patrol agents: $3.6 billion, an increase of 27 percent over 2007 Budget to
continue the President’s efforts to double the size of the Border Patrol.
• Secure Border Initiative (SBI): One billion dollars to secure our borders and reduce illegal
immigration through comprehensive upgrading of technology and infrastructure used in controlling
our border.
• Maintaining the end of “Catch and Release”: $2.2 billion to detain and remove those apprehended
while in the United States illegally.
• Partnering with state and local law enforcement:
o $78 million, a $26 million increase for the 287 (g) program, will provide funding to train
state and local law enforcement officials to assist in immigration enforcement.
o $179 million, a $29 million increase, for the Criminal Alien Program for identifying criminal
aliens in Federal, State and local prisons and removing them from the country.
• Basic Pilot Program: $30 million to support and expand the voluntary web-based program that
helps U.S. employers verify the employment eligibility of employees and avoid hiring an
unauthorized worker.
• Better screening techniques:
o US-VISIT: $462 million to enhance the Federal Government’s screening abilities by
expediting the entry and exit of legal travelers, while focusing on identifying travelers who
seek to harm the United States. Includes $228 million to identify visitors and to assist with
law enforcement investigations by collecting 10 fingerprints at the Nation’s ports of entry
and to begin the implement a biometric exit program.

Protecting All Modes of Transportation:

• Transportation Security Administration (TSA): $6.3 billion to manage security risks to the U.S.
transportation systems while ensuring freedom of movement of people and commerce. These
resources will primarily strengthen aviation transportation systems through improved
technology and highly trained personnel.
• Over $865 million for advanced technologies to detect explosives in the aviation
environment, including explosives on passengers, in their baggage, and in air cargo.
 • Port Security: Nearly $3 billion to enhance the security of U.S. ports through enhanced
systems, assets, and training.
• $529 million for cargo security initiatives including, the Container Security Initiative,
Customs Trade Partnership against Terrorism, Automated Commercial Environment
(ACE) and the Secure Freight Initiative.
• $97 million for Maritime Domain Awareness activates including intelligence collection
and analysis through the Global Maritime Intelligence Integration, system's
architecture and ship tracking systems like Automated Information Systems (AIS).
• $210 million for Port Security Grants to the owners and operators of ports, terminals,
and vessels for security enhancements at the Nation’s seaports.
• State and local transportation security: $196 million to fund projects which enhance security on
mass transit, passenger bus and rail, and highways nationwide.
• $175 million for Transit Security Grants to mass transit systems in high-risk urban
areas for preparedness activities related to terrorism or other incidents.
• $12 million for Intercity Bus Security Grants to owners/ operators of fixed-route,
intercity bus services serving high-risk urban areas.
• $9 million for Trucking Industry Security Grants which support the Highway Watch
Program’s preparedness activities on the Nation’s highways.

Preparing the Nation for public health emergencies:

• Protecting the Nation from bio-terror and other public health emergencies: Nearly $4.3 billion in the
Department of Health and Human Services to improve the Nation’s ability to prepare for, respond
to and recover from bio-terror attacks and other public health emergencies.
o $2.5 billion to research, develop and acquire countermeasures to harmful agents.
o Public health emergency preparedness: Expands Federal public health emergency
preparedness capabilities and capacities.
o $1.1 billion in upgrades for State and local governments and hospitals so they can better
manage bio-terror and other public health emergencies.
• Protecting against an influenza pandemic: $870 million to improve preparedness for an influenza
pandemic including the development of a pandemic vaccine and buying antiviral medications and
medical supplies for stockpiles.
o $322 million in addition pandemic preparedness funding for influenza pandemic
preparedness through the Centers for Disease Control and Prevention, National Institutes
of Health, the Food and Drug Administration and the HHS Office of the Secretary.

Protecting the homeland from nuclear threats and improving chemical security:
• Domestic Nuclear Detection Office (DNDO): $562 million, a 17 percent increase over 2007, to
deploy systems to detect, report and respond to any attempt to import or assemble a nuclear or
radiological materials within the United States.
o $178 million to deploy fixed and mobile radiation monitors at high-risk points of entry
throughout the country.
• Securing the Cities: $30 million for a new initiative to improve DNDO’s ability to detect nuclear or
radiological materials in and around the Nation’s biggest cities and busiest seaports.
• Secure Freight Initiative: Enhances overseas nuclear and radiological screening of U.S. - bound
containers.
 • Chemical Security: Seeks an additional $25 million to enhance security measures at high-risk
chemical facilities and protect against terrorist attacks.

Providing a Stronger Federal Response

As a result of the President's initiative to conduct an in-depth review of the Federal response to Hurricane
Katrina and implement the National Strategy for Homeland Security, the Administration proposes several
enhancements to the Federal Emergency Management Agency (FEMA) to better prepare for, mitigate
against, respond to, and recover from all hazards, including acts of terrorism.
• The Budget reflects the transfer of several preparedness missions to be better coordinated with
operational personnel and State and local governments though FEMA regions.
• The Budget proposes an additional $100 million for enhancements in FEMA operational
capabilities, including a revitalization of personnel development, recruitment, and retention.
 STATE AND INTERNATIONAL PROGRAMS

The President’s 2008 Budget will enhance diplomacy to continue the important work of creating
a more secure, democratic, and prosperous world by:
• Strengthening democracy and self-sufficiency in Iraq and Afghanistan;
• Spreading hope and freedom around the world;
• Preventing and responding to global challenges and humanitarian needs; and
• Supporting transformational diplomacy and development.

Strengthening Democracy and self-sufficiency in Iraq and Afghanistan:

• Supporting freedom in Iraq: Assist the Iraqi government in promoting national reconciliation, building
democratic institutions, and spurring economic growth.
o $400 million to create jobs, build the capacity of Iraqi ministries, help local officials improve
infrastructure, and help Iraqis create a fair legal system;
o $966 million in war supplemental assistance programs to complement our military and strategy
objectives in Iraq; and
o $449 million in war supplemental to double the number of Provincial Reconstruction Teams
(PRTs) and civilian staffing to accelerate building local community capacity.
• Building a stable Afghanistan: Support the President’s commitment to Afghanistan’s transition to a free
and modern nation.
o $1.2 billion to generate economic growth, improve Afghanistan’s infrastructure, create jobs,
and extend the reach of the democratic government to remote areas of the country; and
o $370 million for war supplemental programs that continue funding for high priority infrastructure
needs such as roads and power.

Spreading hope and freedom around the world: The President is committed to supporting democratic
movements with the goal of ending tyranny in the world.
• Promoting democratic transitions: To advance this goal, the Budget provides $460 million for programs
that foster independent media sources, pluralist political parties, voter education, election monitoring,
and human rights in non-democratic countries and $988 million to promote governance and rule of law
in countries committed to reform. The Budget also provides $80 million for the National Endowment for
Democracy.
• Winning the war of ideas: Promoting democracy and countering violent extremism through improving
the world’s understanding of the United States and improving our understanding of the world is a
critical component of the Global War on Terror. The President’s Budget funds broad outreach to
developing and oppressed countries around the world through international broadcasting, exchanges,
and public diplomacy.
o $668 million for the Broadcasting Board of Governors to support radio, television, and internet
broadcasting worldwide, including throughout the Middle East and in Iran, Cuba and North
Korea.
o $486 million for education and cultural exchanges and $359 million for public diplomacy to
foster mutual understanding between the United States and other countries and combat violent
extremism, particularly in the Muslim world.
Preventing and responding to global health challenges and humanitarian needs:
• The President’s Emergency Plan for AIDS Relief (PEPFAR): $5.4 billion to continue the President’s
signature HIV/AIDS program. Of this amount $4.2 billion will directly support the President’s goals of
treating 2 million people, preventing 7 million new infections, and caring for 10 million people in 15
focus countries around the world. An additional $1.2 billion will fund worldwide HIV/AIDS bilateral
programs, research, and contributions to multilateral organizations.
• President’s Malaria Initiative for Africa (PMI): $300 million to reduce malaria-related deaths by 50
percent in 15 target countries in Africa. Aid from the American people has already reached five million
Africans.
• Humanitarian needs: $2.3 billion to respond to and help victims of humanitarian crises abroad.
o Funding to protect and provide basic life support assistance for refugees, conflict victims and
displaced persons.
o Assistance to resettle 70,00 refugees in the United States; and
o Food, water, shelter and sanitation to support the victims of violence in the Darfur region.

Supporting transformational diplomacy and development: The United States is working with partners
around the world to build and sustain peaceful, democratic states.
• Extending our reach: The Budget includes funds to reposition State Department personnel overseas to
support new priorities, improve language training of U.S. personnel, increase security staff to protect
U.S. personnel overseas, and maintain a deployable staff to react quickly to situations overseas.
• Measuring and enhancing impact: The 2008 Budget is the first developed under a new foreign
assistance framework which improves accountability, transparency, and strategic coherence of U.S.
foreign aid. The new Director of Foreign Assistance will ensure that U.S. foreign aid is having its
desired impact and that U.S. resources are effective in helping countries strengthen democratic
institutions and, ultimately, become self-sufficient.
• Protecting and supporting our people: The Budget continues the Capital Security Cost Sharing
Program that will enable the U.S. to construct 150 safe and secure embassy compounds by 2018. The
2008 Budget funds construction of 11 new diplomatic facilities.
• Promoting democracy through good governance: The Budget provides $3 billion for the Millennium
Challenge Corporation to reduce poverty around the world in countries whose leaders are committed to
ruling justly, investing in their people, and supporting economic freedom. The Millennium Challenge
Corporation has already awarded compacts to 11 countries.
• Supporting private sector engagement in development: The 2008 Budget provides for the Export-
Import Bank to be self-financed while continuing to provide financing to U.S. companies exporting to
developing and emerging markets that lack sufficient private sector financing and that face government
sponsored foreign competition.
• Combining trade with effective aid: As we pursue an aggressive trade agenda to open markets and
promote trade reforms worldwide, capacity building (Aid for Trade) efforts continue to benefit
U.S. exporters and developing country partners since these programs help build the legal,
administrative, and physical infrastructures in developing countries, that help create more
predictable and enforceable trading regimes.
 EDUCATION

The President’s 2008 Budget will ensure all American students have access to a quality
education by:
• Building on the success of the No Child Left Behind Act;
• Making college more affordable.

Building on the success of the No Child Left Behind Act (NCLB): NCLB is already raising student
achievement for millions of children in schools nationwide. And it is working to ensure all students perform
at or above grade level in reading and math by 2014. In 2007, the President will work with Congress to
reauthorize NCLB so that we can:
• Prepare high school students for the future: Establish the national expectation that all high school
students graduate on time with a diploma that prepares them for college and the workplace.
o Over a $1 billion increase for Title I Grants to Local Educational Agencies, this will
primarily be used to increase funding for high schools that serve low-income students.
o $412 million will go to States for administration of tests that assess students, high school
achievement and college readiness.
o $100 million for Striving Readers to expand the development and implementation of
research-based interventions to improve the skills of secondary school students who are
reading below grade level.
• Ensure Future Competitiveness: $365 million in new funding as part of the President’s American
Competitiveness Initiative (ACI) to improve student learning in mathematics and science, including:
o Math Now: $250 million to prepare elementary and middle school students for more
rigorous high school math classes.
o Adjunct Teacher Corps: $25 million to recruit professional mathematicians, scientists, and
engineers over the next eight years to share their expertise with high school and middle
school classes.
o Advanced Placement/ International Baccalaureate: A $90 million increase to train more
teachers to teach AP/ IB courses, and expand low-income students access to them.
• Improve Schools and Expand Choices:
o Helping schools in need of improvement: $500 million in funding for School Improvement
Grants, along with over $500 million reserved from Title I, to help improve the performance
of schools that struggled the most to meet NCLB standards.
o Providing new choices for families: $300 million to create the Promise and Opportunity
Scholarships that will offer education alternatives to low-income students in low-performing
schools.

Making college more affordable: In 2008, the Budget will provide nearly $91 billion in financial aid to 11
million students to help pay for college. The Secretary of Education’s Commission on the Future of Higher
Education offered recommendations to improve student access to and quality of postsecondary education,
The Budget includes several reforms aligned with these recommendations, including:
• An increase in the Pell Grant maximum award from to $4,600 in 2008 and $5,400 over five years.
• Increase grant rewards by 50 percent for low-income students who complete a rigorous high
school curriculum through the Academic Competitiveness Grants.
• $25 million for a voluntary pilot initiative that will collect and analyze student data to measure
outcomes such as graduation rates. This initiative will help ensure accountability and transparency
in higher education.
 HEALTH CARE

The President’s 2008 Budget improves America’s health care system by:
• Making health care fairer, more affordable, more accessible and flexible;
• Strengthening health care for low-income and vulnerable populations; and
• Modernizing and improving Medicare and Medicaid.

Making health care fairer, more affordable, more accessible and flexible: The President’s Budget
includes a number of proposals that will level the playing field for workers who don’t get health care through
their employers and improve access to affordable health care for families, including:
• Standard Deduction for Health Insurance: Offers a $15,000 standard deduction for health insurance for
any family covered by at least a basic health insurance policy, whether it was purchased individually or
through an employer.
• Affordable Choices Initiative: The HHS Secretary will work with Congress to develop health care
marketplace reforms that redirect some portion of institutional payments so that States can help people
with poor health or limited income buy insurance.
• Health Care Reforms: Restructure health insurance markets to enhance competition.
o Establish association health plans that would allow small employers and community
organizations to band together to negotiate lower health care costs; and
o Allow people to buy health insurance across state lines which could increase competition while
maintaining strong consumer protections.
• Health Savings Accounts (HSAs): Tax-favored savings accounts combined with qualifying high-
deductible health insurance plans. Individuals can deposit tax-deductible funds into an account that can
be used to cover medical costs.

Strengthening health care for low-income and vulnerable Americans:

• State Children’s Health Insurance Program (SCHIP): SCHIP has provided $40 billion over the last 10
years to States to provide health care coverage to low-income, uninsured children who were not
eligible for Medicaid. The 2008 Budget proposes to:
o Reauthorize SCHIP for five years;
o Increase funding by approximately $5 billion over next five years;
o Refocus the program on children at or below 200 percent of poverty levels as was originally
intended to target resources to America’s neediest children;
• HIV/AIDS: $93 million for HIV testing to decrease the growth of new cases and reduce the future
burden of disease.
• Indian Health Service: $4.1 billion to finance health services for American Indians and Alaska Natives.
• Adolescent Health Promotion Initiative: $17 million to support an effort to address increasing rates of
obesity in children through proven, school-based prevention activities.

Modernizing and improving Medicare and Medicaid:

• Medicare: In 2006, the Medicare Prescription Drug Benefit made its debut. The program has been an
unparalleled success, with beneficiaries saving $1,200 on average, when compared to not having drug
coverage. Competition has worked to keep costs low. Average monthly premiums this year are not
 increasing from 2006 levels, and projected costs of the program are 30 percent lower than initial
estimates for the period of 2004-2013.
o The proposals included in the Budget will encourage appropriate, high-quality care for
Medicare beneficiaries, while promoting efficient payments to providers. The proposals will
also lower beneficiary premiums by nearly $6 billion over the next five years.
o In total, the Budget proposals will reduce the program’s long-term unfunded liability by an
estimated $8 trillion over 75 years. Moreover, under current law, the assets of the Hospital
Insurance (HI) trust fund would start to decline in 2015; the Budget proposals would reverse
that decline and increase the value of the HI Trust Fund throughout the ten-year window.

• Medicaid: The 2008 Budget proposes reforms that enhance past efforts to create service efficiencies
and to assure the fiscal integrity of Medicaid. Even with these changes, the Medicaid baseline
continues to grow at a robust average annual rate of more than seven percent. The FY 2008 reforms
include:
o Pharmacy Reforms: Building on reforms in the Deficit Reduction Act of 2005 to further
rationalize Medicaid payments for prescription drugs and to give States more tools to manage
drug spending.
o Program Integrity: Improving Medicaid management that will help States avoid paying
unnecessary costs through improved third-party liability reforms and more effective Medicaid
eligibility processes.
o Long-term Care: Ensure that Medicaid long-term care services are protected for those who
need it most by removing the State option to define substantial home equity between $500,000
and $750,000.
o Pay-for-Performance: Requiring States to report on performance measures and link their
performance to Federal Medicaid grants.
o Reimbursement Reform: Aligning Federal reimbursement for administrative services and
targeted case management to create consistency in matching rates across these activities.
 ENERGY
The President’s 2008 Budget will help strengthen energy security by:
• Increasing the use of alternative fuel in cars and trucks;
• Improving and reforming Corporate Average Fuel Economy (CAFÉ) standards for cars, as has been
done for light trucks;
• Expanding the Strategic Petroleum Reserve;
• Accelerating technological breakthroughs with the Advanced Energy Initiative, by developing more
efficient vehicles and advancing the expansion of nuclear power generation, while addressing nuclear
waste and proliferation issues;
• Advancing scientific progress with the American Competitiveness Initiative;
• Maintaining the Nation’s Nuclear Stockpile and Strengthening Nuclear Nonproliferation.

Increasing and reforming the use of alternative fuel: The President’s Twenty in Ten Plan increases and
expands the current renewable fuels standard of 7.5 billion gallons in 2012 to a new alternative fuel
standard requiring 35 billion gallons of renewable and alternative fuels in 2017.
• Combined with the Administration’s proposal to improve and reform Corporate Average Fuel
Economy (CAFE) standards, the President’s plan will reduce our projected domestic gasoline
consumption by 8.5 billion gallons (20 percent) in 2017, and help reduce our projected gasoline-
related greenhouse gas emissions by as much as 170 million metric tons.

Expanding the Strategic Petroleum Reserve: The Budget proposes to double the capacity of the
Strategic Petroleum Reserve by expanding it to 1.5 billion barrels by 2027 -- filling the reserve to its existing
727 million barrel capacity, and then expanding capacity at existing and new sites beginning in 2008. This
will double the protection the reserve provides our economy from major oil shortages.

The Advanced Energy Initiative (AEI): The AEI is accelerating breakthroughs in how we power our
homes, cars, and businesses and will help the U.S. to diversify its sources of energy, reduce dependency
on oil, and increase our energy security.
• Coal Research Initiative: $385 million to complete the President’s commitment to invest $2 billion
over 10 years – three years ahead of schedule— to develop technologies to reduce air emissions
while providing domestically secure, cost-efficient electricity from America’s huge coal reserve..
o FutureGen Project: $108 million towards construction of a nearly emissions-free coal plant
that captures and stores carbon dioxide rather than releasing it into the atmosphere.
• Solar America Initiative: $148 million toward the goal of making solar technology cost competitive
with conventional electricity by 2025.
• Biofuels Initiative: $179 million to research the production of cellulosic ethanol from corn and to
make other organic materials available as a competitive energy alternative by 2012.
• Hydrogen Fuel Initiative: $309 million will complete the President’s five-year, $1.2 billion
commitment to support the development of commercially viable hydrogen technologies and fuel
cell vehicles by 2020.
• Nuclear Power 2010: $114 million—more than double the funding in the 2007 Budget—toward this
$1.1 billion government/ private sector partnership to license new reactors and for private industry
to obtain licenses for new designs that could result in new power plants ordered by 2009 and
operating by 2014.
 • Global Nuclear Energy Partnership: $395 million to continue strong support for engineering and
design of advanced reactors and new nuclear waste recycling approaches with the potential to
reduce the toxicity and volume of nuclear waste that requires disposal in a permanent repository.
Solving the nuclear waste issue paves the way for expanding the safe use of nuclear power around
the world and at home, promotes nuclear nonproliferation, and resolves nuclear waste disposal
issues through an international framework.
• Advanced Battery Research: $42 million to accelerate research on advanced battery technologies
for “plug-in” hybrid vehicles that can be recharged at night.

Accelerating deployment of advanced coal technology: EPAct 2005 authorizes the allocation of $1.65
billion in tax credits to foster more than $9 billion in private investments to construct highly efficient and low
emission coal power facilities. $1 billion in tax credits were awarded in 2006.

Accelerating scientific progress through the American Competitiveness Initiative (ACI): ACI is
designed to support basic research and world-leading facilities in the physical sciences to enable future
breakthroughs and provide economic security benefits.
• Department of Energy's Office of Science: $4.4 billion, to strengthen research and cutting edge
facilities, such as new bio-energy research centers; increase contributions toward a major international
fusion energy program; expand supercomputing facilities and related research; and support design and
construction activities for world-leading light sources.
o $160 million for the United States’ contribution to the International Thermonuclear
Experimental Reactor.

Maintaining the Nations Nuclear Weapons Stockpile and Strengthening Nuclear Nonproliferation:
To ensure the Nation’s nuclear stockpile is safe, secure, and reliable and that our Nation’s enemies do not
acquire nuclear materials or nuclear weapons capabilities.
• National Nuclear Security Administration: $6.5 billion to extend the life of existing warheads, accelerate
the dismantlement of weapons declared excess, and continue to make the nuclear weapons
infrastructure more responsive.
• Non-Proliferation Program: $1.7 billion to detect, secure, eliminate, or dispose of dangerous nuclear
material and radiological sources around the world to deny terrorists and rogue states the materials,
technology, and expertise needed to acquire and use a nuclear weapon.
 JUSTICE & LAW ENFORCEMENT
The President’s 2008 Budget will enhance anti-terrorism, intelligence, and law
enforcement efforts and promote greater public safety by:
• Strengthening critical counterterrorism, intelligence and other national security
programs;
• Assisting States and local communities by more effectively meeting their needs for law
enforcement grants and assistance;
• Enhancing efforts to protect our children from abuse and exploitation;
• Including funding to reduce violent crime and combat the spread of illegal drugs; and
• Providing funding for additional prison capacity to reduce overcrowding and ensure that
dangerous and violent criminals can be appropriately incarcerated upon conviction.

Strengthening critical counterterrorism, intelligence and other national security programs:

Supports key initiatives at the FBI and the National Security Division to improve the Department’s
ability to prevent, investigate and prosecute acts of terrorism and other threats to our national
security. These initiatives include:
• $52 million for 150 new counterterrorism and counterintelligence agents and 50
surveillance personnel.
• $91 million for an expansion of the FBI’s data collection and exploitation programs.
• $22 million for the continued development of human intelligence management and source
validation programs.
• $7 million for the National Security Division for the prevention and prosecution of terrorism.

Assisting States and local communities by more effectively meeting their needs for law
enforcement grants and assistance:
• $1.2 billion in discretionary funding for law enforcement assistance, including a proposal to
consolidate more than 70 distinct and fragmented programs into four flexible and
competitive grants.
• All funds to be allocated based on a competitive, need-based process. More than 1300
earmarks totaling $544 million in the last Justice appropriations bill will be eliminated.
• Violent Crime Reduction Partnership Initiative: $200 million to help States and
communities form partnerships with Federal law enforcement agencies to address spikes
in violent crime.
• Byrne Public Safety and Protection Program: $350 million for methamphetamine cleanup
and enforcement, drug courts, firearms crime prosecution assistance, efforts to combat
domestic trafficking, and other priorities based on local needs.
• Violence Against Women Program: $370 million to curb domestic violence and related
crimes against women.
• Child Safety and Juvenile Justice Program: $280 million to help communities address child
predators, school safety, and juvenile justice needs.
• $625 million in mandatory funding is provided for crime victims’ assistance programs.
Protecting our children from abuse and exploitation:
• $12 million in enhancements for the Project Safe Childhood Initiative to protect our children
from exploitation on the internet.
• $13 million in enhancements to implement the Adam Walsh Act , including apprehending
sexual predators and better managing sexual offenders in the Federal prisoner population.

Reducing violent crime and combating the spread of illegal drugs:

• $39 million to help the Drug Enforcement Administration (DEA) stem the flow of illegal
drugs by targeting the production, distribution and sale of methamphetamine and other
precursor drugs and help stop illegal drugs from entering the US through the US
Southwest border. Additional funding also will increase DEA’s ability to share intelligence
information.
• $19 million to help the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATFE)
combat violent crime by reducing illegal firearms trafficking and gang and gun-related
violence in our nation’s most at-risk communities.

Enhancing Federal incarceration and detention:

• $142 million for two additional prisons to help meet population growth and reduce
overcrowding at the BOP’s most critical security levels. Two additional prisons, in Pollock,
LA and Mendota, CA, will add a total of 2,432 beds and will begin receiving inmates in
2008 and 2010, respectively.
• $27 million to expand BOP’s use of State, local and private prison space to accommodate
lower security prisoners. The 2008 Budget increases the number of contract prison beds
by 1,100.
 COMPASSION
The President’s 2008 Budget reaches out to individuals, families and communities by promoting
initiatives that offer assistance to those in need, care for the sick and a more comfortable life
with better opportunities for the future by:
• Supporting homeownership and housing assistance through increased resources and program
innovations;
• Housing more low-income families:
• Working to end chronic homelessness;
• Supporting Faith-Based and community programs;
• Supporting community service;
• Providing health care coverage to low-income, uninsured children;
• Promoting nutrition assistance programs; and
• Preventing and responding to global and local health challenges and humanitarian needs.

Supporting homeownership through increased resources and program innovations:

• HOME Investment Partnership Program: The Budget provides nearly $2 billion for the HOME block
grant program – an increase of over $150 million – to expand the supply of affordable rental and
owner-occupied housing and provide rental assistance to low-income families and individuals.
o American Dream Downpayment Initiative (ADDI): As part of the HOME program, ADDI
increases the number of minority and first-time homebuyers by helping low-income people
overcome barriers to homeownership, such as down payment and closing costs.
• Federal Housing Administration (FHA) Mortgage Program: The Budget proposes changes to FHA’s
Mortgage Program to help increase homeownership, particularly among minorities and first-time
homebuyers, by expanding access to mortgage credit.

Housing more low-income families:

• Section 8 Vouchers: The Section 8 program provides rental support to 2 million low-income families
and individuals, offering stability and the opportunity to move toward self-sufficiency.
o In addition to the proposed $16 billion for the program – an increase of over $900 million over
the current 2007 level – the Budget would release unused excess balances at public housing
authorities (PHAs) enabling approximately 180,000 additional low-income families to receive
housing assistance.
o Proposed reforms will align incentives for PHAs to utilize their funds and assist more low-
income families

Working to end chronic homelessness: By creating new supportive housing options, the Administration
continues its commitment to end chronic homelessness and its causes by expanding:
• Homeless assistance grants: $1.6 billion, a $200 million increase, to house the long-term homeless,
treat their addictions and provide assistance for a physical or mental condition.
Supporting Faith-Based and community programs:
• Compassion Capital Fund: $75 million to provide training for capacity-building and technical assistance
for grassroots Faith-Based and Community-Based Organizations (FBCOs). This includes funding for
Communities Empowering Youth, an anti-gang initiative which aims to build the capacity of faith-based
and community coalitions that work to reduce gang involvement and youth violence.
• Abstinence education: $204 million will fund abstinence education that is designed to reduce
pregnancies among adolescents and the incidence of sexually transmitted diseases among
adolescents.
• Mentoring children of prisoners: $50 million to establish enduring, quality mentoring relationships for
children of arrested and/or incarcerated parents.
• Access to Recovery (ATR): $98 million to fund 20 competitive grants that expand access to treatment
and recovery support services.
• Helping America’s Youth: A Presidential initiative led by the First Lady to raise awareness about the
challenges facing America’s youth. This initiative also promotes a community and family based
approach to find new partnerships and creative solutions to improve the lives of boys and girls.

Supporting community service:

• Corporation for National and Community Service: $829 million for the Corporation for National and
Community Service to continue its core national service programs and generate service opportunities
for more than 3.1 million Americans. The Budget supports the President’s goal of enrolling 75,000
AmeriCorps members.
o AmeriCorps: A network of local, state, and national service volunteers that participate in
intensive community service programs and address our country’s critical needs in education,
public safety, health, and the environment.
o Learn and Serve America: Supports and encourages service-learning throughout the United
States, and enables over one million students to make meaningful contributions to their
community while building their academic and civic skills.

• Providing health care coverage to low-income, uninsured children: State Children’s Health
Insurance Program (SCHIP) has provided $40 billion over the last 10 years to States to provide health
care coverage to low-income, uninsured children who were not eligible for Medicaid. The 2008 Budget
proposes to:
o Reauthorize SCHIP for five years;
o Increase funding by approximately $5 billion over next five years; and
o Refocus the program on children below 200 percent of poverty levels as was originally
intended.

Promoting nutrition assistance programs:

• Food Stamp reauthorization:
o Excluding all retirement savings when determining eligibility for food stamps will expand the
number of food stamp eligible individuals and allow recipients to save more of their earnings
for retirement.
o Protects service members and their families by ensuring that food stamps are not lost due to
combat-related military pay.
• Special Supplemental Nutrition Program for Women Infants and Children (WIC):
o $5.4 billion to serve an estimated 8.3 million low-income American postpartum women and
their children under five per month. The Department of Agriculture is issuing updated WIC food
packages that reduce maximum allowances of certain foods and increase the intake of fresh
fruits and vegetables.

Preventing and responding to global and local health challenges and humanitarian needs:
• The President’s Emergency Plan for AIDS Relief (PEPFAR): $5.4 billion to HIV/AIDS programs
worldwide. $4.2 billion to AIDS/ HIV treatment, prevention and care activities for two million people in
15 focus countries. An additional $1.2 billion will fund worldwide HIV/AIDS bilateral programs, research,
and contributions to multilateral organizations.
• President’s Malaria Initiative for Africa (PMI): $300 million to assist national malaria control programs to
advance the program’s goal to cut malaria-related deaths by 50 percent in 15 target countries in Africa.
Aid from the American people has already reached five million Africans through partnerships working in
the first three focus countries,
• Humanitarian needs:
o Responding to needs in Sudan: Continues to be the world’s leader in providing food, water,
shelter and sanitation and other assistance to support the victims of violence in the Dafur
region of Sudan.
o Protecting refugees: Providing protection and basic life support assistance for and protecting
refugees, conflict victims and internally displaced persons overseas. Continues to lead the
international community in refugee resettlement.
 CHILDREN

The President’s 2008 Budget ensures children have access to a quality education while
promoting healthy lifestyles in an environment free of crime and predators by:
• Building on the Success of No Child Left Behind Act (NCLB);
• Making college more affordable;
• Providing health care coverage to low-income, uninsured children;
• Promoting nutrition assistance programs; and
• Ensuring that our children are protected from exploitation and continuing efforts to reach out to
at-risk children.

Building on the success of the No Child Left Behind Act (NCLB): NCLB is already raising student
achievement for millions of children in schools nationwide. And it is working to ensure all students perform
at or above grade level in reading and math by 2014. In 2007, the President will work with Congress to
reauthorize NCLB so that we can:
• Prepare high school students for the future: Establish the national expectation that all high school
students graduate on time with a diploma that prepares them for college and the workplace.
o $1.2 billion increase for Title I Grants to Local Educational Agencies, which will primarily be
used to increase funding for high schools that serve low-income students.
o $412 million will go to States for administration of tests that assess students, high school
achievement and college readiness.
o $100 million for Striving Readers to expand the development and implementation of
research-based interventions to improve the skills of secondary school students who are
reading below grade level.
• Ensure Future Competitiveness: $365 million in new funding as part of the President’s American
Competitiveness Initiative (ACI) to improve student learning in mathematics and science, including:
o Math Now: $250 million to prepare elementary and middle school students for more
rigorous high school math classes.
o Adjunct Teacher Corps: $25 million to recruit professional mathematicians, scientists, and
engineers over the next eight years to share their expertise with high school and middle
school classes.
o Advanced Placement/ International Baccalaureate: A $90 million increase to train more
teachers to teach AP/ IB courses, and expand low-income students access to them.
• Improve Schools and Expand Choices:
o Helping schools in need of improvement: $500 million in new funding for School
Improvement Grants, along with over $500 million reserved from Title I, to help improve
the performance of schools that struggled the most to meet NCLB standards.
o Providing new choices for families: $300 million to create the Promise and Opportunity
Scholarships that will offer education alternatives to low-income students in low-performing
schools.
Making college more affordable: In 2008, the Budget will provide nearly $91 billion in financial aid to 11
million students to help pay for college. The Secretary of Education’s Commission on the Future of Higher
Education offered recommendations to improve student access to and quality of postsecondary education,
The Budget includes several reforms aligned with these recommendations, including:
• An increase in the Pell Grant maximum award from $4,050 to $4,600 in 2008 and $5,400 over five
years.
• A 50 percent increase in Academic Competitiveness Grants for low-income students in their first
two years of college who complete a rigorous high school curriculum.
• $25 million for a voluntary pilot initiative that will collect and analyze student data to measure
outcomes such as graduation rates. This initiative will help ensure accountability and
transparency in higher education.

• Providing health care coverage to low-income, uninsured children: SCHIP has provided $40
billion over the last 10 years to States to provide health care coverage to low-income, uninsured
children who were not eligible for Medicaid. The 2008 Budget proposes to:
o Reauthorize SCHIP for five years;
o Increase funding by approximately $5 billion over the next five years;
o Refocus the program on children at or below 200 percent of poverty levels as was originally
intended;
o Target SCHIP funds more efficiently to States with the most need.

Promoting nutrition assistance programs:

• Special Supplemental Nutrition Program for Women Infants and Children (WIC):
o $5.4 billion to serve per month an estimated 8.3 million low-income American postpartum
women and their children under five years old. The Department of Agriculture is issuing
updated WIC food packages that reduce maximum allowances of certain foods and increase
the intake of fresh fruits and vegetables.
• Adolescent Health Promotion Initiative: $17 million to support an effort to address increasing rates of
obesity in children through proven, school-based prevention activities.
• National School Breakfast and Lunch Programs: $11.1 billion to highlight the continuing importance of
providing America's children with access to nutritious meals.

Ensuring that our children are protected from exploitation and continuing efforts to reach out to at-
risk children:
• Our children should be protected from predators and abuse. That’s why the Budget includes $31 million
to reduce the number of children that are exploited and abused at home and at school as well as over
the internet.
o Adam Walsh Act: $13 million to aggressively pursue and punish sexual predators and to
continue to keep the National Sex Offender Registry active.
o Project Safe Childhood: Provides $84 million to combat the proliferation of technology-
facilitated sexual exploitation crimes against children by partnering with existing national public
awareness and educational programs, in order to raise national awareness about the threat of
online sexual predators and to provide the tools and information to parents and youngsters
seeking to report possible violations.
o Protect Act: Strengthens laws that prosecute child pornographers, makes punishments against
them more severe and gives judges more discretion in deciding on how long to supervise sex
offenders upon their release from prison.
 o Operation Predator: Seeking to protect children worldwide, the Department of Homeland
Security/U.S. Immigration and Customs Enforcement (ICE) will use ICE's unique investigative
and enforcement authority to safeguard children from foreign national pedophiles, human
traffickers, international sex tourists, and other predatory criminals.
• Child Safety and Juvenile Justice Programs: $280 million for grants that address violence against
children, including expanded efforts to prevent crimes against children and investigate sexual predators
and child prostitution rings.
o Consolidates existing juvenile justice programs.
o Eliminates formulas and earmarks -- creating a single, flexible, and competitive grant program.
o Can address multiple child safety and juvenile justice needs depending on local need or
national priority.
o Expands efforts to prevent crimes against children, and investigate sexual predators, child
prostitution rings, and others who seek to harm children.
• Nurse Home Visitation: $10 million for grants to encourage States to adopt nurse home visitation
programs which have proven effective in reducing incidents of child abuse and neglect, as well
as improving other outcomes such as health and school readiness.
• Helping America’s Youth: A Presidential initiative led by the First Lady to raise awareness about the
challenges facing America’s youth. This initiative also promotes a community and family based
approach to find new partnerships and creative solutions to improve the lives of boys and girls.
 SCIENCE & SPACE

The President’s 2008 Budget will continue America’s commitment to gain a deeper
understanding of space and the sciences through:
• The President’s Vision for Space Exploration;
• Continued leadership in space, science and aeronautics;
• Accelerating scientific progress with the American Competitiveness Initiative;
• Enhancing the ability to observe, protect, and manage Earth’s resources; and
• The Advanced Energy Initiative (AEI).

The President’s Vision for Space Exploration:

• $951 million for the National Aeronautics and Space Administration (NASA) to design and develop
Orion – a crewed spacecraft that will return humans to the Moon.
o Orion will replace the Space Shuttle, which will be retired in 2010 after completing
construction of the Space Station.
• $1.2 billion for NASA to develop a new rocket that will launch Orion, the Ares I.
o The Ares I will require less launch preparation than the Space Shuttle, generating savings
in operating costs.
• $436 million over three years in award money for developers who build privately operated space
vehicles that would re-supply the International Space Station.
• $352 million over five years to maximize scientific gain from robotic exploration of the Moon.
• $345 million to develop the Mars Science Laboratory, scheduled to launch in 2009, to increase our
knowledge of the Martian environment and test technologies that may assist human exploration.

Continued leadership in space, science and aeronautics:

• $1.6 billion for NASA to conduct astronomy research, upgrade the Hubble telescope, and build new
space telescopes to be named for 17th century astronomer Johannes Kepler and former NASA
Administrator James E. Webb.
• $804 million over five years for NASA to develop and launch no later than 2013 the Global
Precipitation Measurement satellite system, along with interagency and international partners, to
better understand rainfall and improve our ability to track major weather events.
• $396 million over five years to support long-term aeronautics research at university and industry
labs.

Accelerating scientific progress through the American Competitiveness Initiative: ACI is designed to
support basic research and world-leading facilities in the physical sciences to enable future breakthroughs
and provide economic security benefits. The 2008 Budget increases funding for the ACI research agencies
by 7.1 percent to $11.4 billion in order to advance knowledge and technological capabilities with broad
scientific impact to maximize economic gains. Over 10 years, the ACI proposed an increase of nearly $50
billion in innovation-enabling research in the National Science Foundation, the Department of Energy, and
the Department of Commerce's National Institute of Standards and Technology.
• National Science Foundation: $6.4 billion, to address specific priorities in physical sciences,
nanotechnology, information technology, and oceans; further the fields of science and engineering
 broadly; and support many more researchers and students contributing to the innovation
enterprise.
• Department of Energy's Office of Science: $4.4 billion, to strengthen research and cutting edge
facilities, such as new bio-energy research centers; increase contributions toward a major
international fusion energy program; expand supercomputing facilities and related research; and
support design and construction activities for world-leading light sources.
• The Department of Commerce's National Institute of Standards and Technology: $594 million, to
enhance nanotechnology manufacturing capabilities; expand a neutron facility to help characterize
novel materials; construct new, high-performance laboratories; and improve our understanding of
quantum information science that may dramatically improve computer processing speeds and
enable more secure communications.

Enhancing the ability to observe, protect, and manage the Earth’s resources: Supports key programs
in the National Aeronautics and Space Administration (NASA), the National Science Foundation (NSF), the
National Oceanic and Atmospheric Administration (NOAA) and the US Geological Survey (USGS) that
observe and predict changes in the Earth’s environment and manage our ocean and coastal resources
including:
• $1.6 billion to develop new sensors and conduct research that will expand scientific understanding
of the Earth system.
• Over $800 million to improve weather forecasting capabilities by developing and acquiring
geostationary and polar-orbiting weather satellites and unmanned aircraft systems to improve
forecasting and our understanding of the climate.
o Tsunami Warning and Mitigation System: An additional $2 million to strengthen tsunami
detection and warning capabilities.
• Climate Change Research Initiative: Research on water vapor processes will refine climate models
and developing an integrated drought early warning system will provide earlier and more accurate
forecasts of drought conditions.
• Ocean Action Plan: Enhancing our understanding of oceans and coasts with $80 million in
new funding to advance ocean science and research.
o Advancing Ocean Science and Research ($80M): The Budget provides a total of $40
million to address near-term ocean research priorities established by the Ocean Research
Priorities Plan and Implementation Strategy. New funding to address these priorities is
provided to NOAA, NSF, and USGS. These interagency efforts will build upon and include
on-going activities at multiple agencies. The Budget also proposes $8 million to define the
outer limits of the U.S. continental shelf (areas beyond 200 miles from the U.S. coast that
meet certain geological criteria). Defining those limits will allow the U.S. to confirm its
resource rights, which contain an estimated $1.2 trillion worth of resources. In addition,
$32 million is included for NOAA to develop an operational ocean monitoring network, for
technology and other infrastructure to support ocean science, for International Polar Year
activities, and for research on protected species and commercial fisheries. The Budget
also continues funding for NSF’s Oceans Observations Initiative, which will provide
important infrastructure to support sustained ocean observations and research.
• International Polar Year: $60 million for researching environmental changes in the Arctic and the
impact of polar ice sheets on global phenomena.
The Advanced Energy Initiative (AEI): The AEI is accelerating breakthroughs in how we power our
homes, cars, and businesses and will help the U.S. to diversify its sources of energy, reduce dependence
on foreign sources of oil and increase our energy security.
• Coal Research Initiative: $385 million completes the President’s commitment to invest $2 billion
over 10 years – three years ahead of schedule – in order to tap into America’s huge coal reserve
for continued use as a clean and viable energy source.
o FutureGen Program: $108 million will fund tests on deriving power from coal and facilitate
demonstrations as to how power could be generated from coal.
o EPAct 2005: Authorizes the allocation of $1.65 billion in tax credits to foster more than $9
billion in private investments to construct highly efficient and low emission coal power
facilities.
• Solar America Initiative: $148 million toward the goal of making solar technology cost competitive
with conventional electricity by 2025.
• Biofuels Initiative: $179 million to research production of cellulose ethanol from corn, and to make
other organic materials available as a practical energy alternative by 2012.
• Hydrogen Fuel Initiative: $309 million will complete the President’s five-year, $1.2 billion
commitment to support the development of commercially viable hydrogen technologies and fuel
cell vehicles by 2020.
o Developing more efficient vehicles: $81 million to accelerate research that would lead to
advanced battery technologies that would power “plug-in” vehicles that are simply
recharged at night.
 AGRICULTURE
The President’s 2008 Agriculture Budget will:
• Ensure the continuation of a strong farm economy;
• Protect the Nation’s food supply;
• Develop sustainable forests;
• Promote nutrition assistance programs; and
• Encourage development in rural America.

Ensuring the continuation of a strong farm economy: The Administration is proposing changes
to the current Farm Bill to ensure the farming economy stays strong and that our Nation’s farm
policy is more equitable, predictable, and protected from challenge.

Protecting the Nation’s food supply from agriculture threats:

• Food and Agriculture Defense Initiative: $341 million to continue efforts to protect the Nation’s
food supply and agriculture from threats, whether intentional or unintentional, by enhancing the
Department of Agriculture’s ability to detect, respond to and recover from incidents of disease,
pest or poisonous agents.
• Protecting against Avian Influenza: $57 million for domestic surveillance and diagnostics of
wild and domestic birds, emergency preparedness and response, and technical assistance to
other countries.

Developing sustainable forests:

• Healthy Forests Restoration Act: $291 million to fund projects that will clear accumulated fire
fuels to help prevent catastrophic wildfires.
• Northwest Forest Plan: Strengthen cooperation between the Federal government and the
public to boost rural economies by harvesting 800 million board feet of timber in 2008.
• Forest Planning Rule: Employs an Environmental Management System to improve
performance and accountability and which is compliant with the National Environmental Policy
Act.

Promoting nutrition assistance programs:

• Food Stamp Reauthorization: Excluding all retirement savings when determining eligibility for
food stamps will expand the number of food stamp eligible individuals and allow recipients to
save more of their earnings for retirement.
o Protect service members and their families by ensuring that food stamps are not lost
due to combat-related military pay.
• Special Supplemental Nutrition Program for Women Infants and Children (WIC): Provides $5.4
billion to serve an estimated 8.3 million low-income American postpartum women and their
children under five years old per month. The Department of Agriculture is issuing updated WIC
food packages that reduce maximum allowances of certain foods and increase the intake of
fresh fruits and vegetables.
Encouraging development in rural America:
• Developing Renewable Energy:
o $20 million in research to develop new feed stocks for energy production on a region-
by-region basis.
o $402 million in financial assistance for rural businesses, researchers, and producers to
develop and use renewable energy systems.
• Supporting Housing for Rural Residents:
o $4.8 billion in loan guarantees to increase single family homeownership opportunities.
o $28 million for a voucher program that assists tenants to pay for housing when USDA-
financed properties are paid off and no longer available as subsidized housing.
 ENVIRONMENT
The President’s 2008 Budget protects and preserves the environment:
• Launching the National Parks Centennial Initiative;
• Enhancing the ability to observe, protect, and manage the Earth’s resources;
• Securing critical water infrastructure;
• Improving our nation’s water quality and supplies;
• Working with States and other nations to reduce air pollution; and
• Partnering for cooperative conservation.

Launching the National Parks Centennial Initiative: Our national parks are American icons; they
embody a national commitment to conservation, preservation and family enjoyment. The President’s 2008
Budget will provide funding for:
• National Parks Centennial Initiative: Up to $3 billion in new funds over 10 years to improve and
protect national parks for the next century.
o A commitment of $100 million to achieve new levels of excellence in our parks.
o A challenge for the public to donate at least $100 million in support of our parks.
o A match of up to $100 million for donations to signature projects and programs.
• For Park Operations: $250 million more than requested in 2006 and 40 percent higher than
when President Bush took office -- the largest increase ever.

Enhancing the ability to observe, protect, and manage the Earth’s resources
• Ocean Action Plan and the Ocean Research Priorities Plan and Implementation Strategy:
Conserving ocean and coastal resources with $143 million in new funding to advance ocean
science and research ($80 million), protect and restore coastal and marine areas ($38 million),
and end overfishing and ensure sustainable use of ocean resources ($25 million).
• Advancing Ocean Science and Research:
The Budget provides a total of $40 million to address near-term ocean research priorities
established by the Ocean Research Priorities Plan. New funding to address these priorities is
provided to NOAA, NSF, and USGS. These interagency efforts will build upon and include on-
going activities at multiple agencies. The Budget also proposes $8 million to define the outer
limits of the U.S. continental shelf (areas beyond 200 miles from the U.S. coast that meet
certain geological criteria). Defining those limits will allow the U.S. to confirm its resource
rights, which contain an estimated $1.2 trillion worth of resources. In addition, $32 million is
included for NOAA to develop an operational ocean monitoring network, for technology and
other infrastructure to support ocean science, for International Polar Year activities, and for
research on protected species and commercial fisheries. The Budget also continues funding
for NSF’s Oceans Observations Initiative, which will provide important infrastructure to support
sustained ocean observations and research.
• Protecting and Restoring Coastal and Marine Areas:
The Budget includes $8 million to support the management of the Northwestern Hawaiian
Islands Marine National Monument, which the President designated in June 2006. The
Monument, which protects over 4,500 square miles of coral reefs and over 7,000 marine
species, is the largest single conservation area in the world. An additional $30 million is
 provided to work with State and local partners to protect valuable coastal and marine habitat,
including a project to eventually restore nearly 1000 stream miles of habitat for endangered
Atlantic salmon and other fish species, critical projects in the Klamath Basin, and projects in
the Gulf of Mexico identified as priorities by the Gulf of Mexico Regional Alliance articulated in
the Governors' Action Plan for Healthy and Resilient Coasts, released by the Governors of
Florida, Alabama, Mississippi, Louisiana, and Texas.
• Ending Overfishing and Ensuring Sustainable Use of Ocean Resources:
Following the historic bipartisan commitment to end overfishing with reauthorization of the
Magnuson Stevens Fisheries Conservation Act, the President requests $20 million to
implement requirements of the legislation. This includes funding ($6M) to facilitate market-
based approaches to fisheries management such as Limited Access Privilege (LAP) programs
that provide exclusive privileges to harvest a quantity of fish. The Administration has set a goal
of doubling the number of LAP systems in use by the year 2010. The President requests $3
million to ensure sustainable access to seafood through offshore aquaculture. The
Administration has proposed legislation to establish clear regulatory authority and permitting
processes for offshore aquaculture in order to encourage and facilitate development of
environmentally sustainable commercial opportunities. Funding is also provided for NOAA to
meet the management challenges of assessing and mitigating the impacts of sound from
human activities, such as national defense readiness and energy exploration and development
on marine mammals ($2M).

Securing critical water infrastructure: The adoption of surveillance systems by drinking water utilities in
high threat cities is a critical component of water infrastructure protection.
• The Water Security Initiative: A joint Federal and state project that will work to reduce the risk
of contamination, plan emergency responses to drinking water crises and provide water
security training to local officials.

Improving our nation’s water resources and supplies: The Administration has made it a priority to
ensure that America’s water sources meet safety standards for clean and drinkable water.
• The Great Lakes Legacy Act: $35 million to clean up harmful industrial pollutants dumped into
the Great Lakes that could harm food sources and human health.
• Chesapeake Bay Program: $29 million to help restore the water quality of the Chesapeake
Bay.
• Drinking Water State Revolving Fund: $842 million in new capitalization to improve access to
safe drinking water.
• Long Term 2 Enhanced Surface Water Treatment Rule: Uses an innovative risk-based
cryptosporidium monitoring approach to target the most vulnerable drinking water systems.
• Water 2025 Initiative: $11 million to improve water management through water conservation,
efficiency and water marketing efforts, while securing reliable water sources in the West.
• Private activity bonds for water infrastructure: Expands the availability of tax-exempt capital to
municipalities that implement full-cost pricing for water services, helping drinking water and
wastewater systems become self-financing like other utilities and reducing the need for future
Federal financing.
Working with States and other nations to reduce air pollution:
• Clean Air Interstate Rule (CAIR): Reduces power plant emissions of sulfur dioxide by more
than 70 percent and nitrogen oxides emissions by more than 60 percent from 2003 levels in
the Eastern U.S.
• Clean Air Mercury Rule (CAMR): The CAMR builds on the progress of CAIR and, when fully
implemented, these rules will reduce utility emissions of mercury nearly 70 percent.
• Highway Diesel Rule: Makes highway diesel engine emissions up to 95 percent cleaner than
current models starting in 2007.
• Non-Road Diesel Rule: Reduces sulfur in off-highway diesel fuel by more than 99 percent by
2010 and reduces non-road diesel engine emissions by more than 90 percent starting in 2008.
• The Asia-Pacific Partnership (APP): Works with international partners, Australia, China, India,
Japan and South Korea, to promote U.S. and partner exports in the field of clean energy and
environmental goods and services.
• Methane to Markets Partnership: Advances the recovery and use of methane as a clean
energy source.

Partnering for cooperative conservation: Conserving our native fishes, migratory birds, at-risk species
and marine environments is a shared goal among federal, state and local governments.
• Conservation Tax Incentive: Permanently extend the deductions for lands donated for
conservation purposes, thereby helping “land-rich, cash-poor” land owners, such as farmers
and ranchers, that donate lands for open space and other conservation goals.
• North American Wetlands Conservation Act: Conservation program designed to protect
wetlands and upland habitats that waterfowl and other migratory birds need for survival.
• Open Rivers Initiative: $12 million to repair river ecosystems and enhances populations of key
species by removing small, obsolete dams and river barriers.
• Penobscot River Restoration: Provides federal funding for a Federal-State-private project to
restore nearly 1,000 miles of habitat for endangered Atlantic salmon and several other species,
by purchasing and removing or modifying three dams along the Penobscot River.
 COMMERCE
The President’s 2008 Budget will strengthen and support the foreign and domestic commerce of
the United States by:
• Enhancing the ability to observe, protect, and manage Earth’s resources;
• Accelerating scientific progress through the American Competitiveness Initiative;
• Gathering the most accurate demographic and economic data;
• Protecting Intellectual Property Rights; and
• Opening new markets.

Enhancing the ability to observe, protect, and manage the Earth’s resources: Supports key programs
in the National Oceanic and Atmospheric Administration (NOAA), the National Aeronautics and Space
Administration (NASA), National Science Foundation (NSF), and U.S. Geological Survey (USGS) that
observe and predict changes in the Earth’s environment and manage our ocean and coastal resources
including:
• $1.6 billion to develop new sensors and conduct research that will expand scientific understanding
of the Earth system.
• Over $800 million to improve weather forecasting capabilities by developing and acquiring
geostationary and polar-orbiting weather satellites and unmanned aircraft systems to improve
forecasting and our understanding of the climate.
o Tsunami Warning and Mitigation System: An additional $2 million to strengthen tsunami
detection and warning capabilities..
• The Asia-Pacific Partnership (APP): Works with international partners, Australia, China, India,
Japan and South Korea, to promote U.S. and partner exports in the field of clean energy and
environmental goods and services.
• Ocean Action Plan: Protecting ocean and coastal resources with $143 million in new projects to
advance ocean science ($80M), protect and restore sensitive coastal areas ($38M), and ensure
sustainable use of ocean resources ($25M).
o Curbing Over-fishing: Following the historic bipartisan commitment to end overfishing with
reauthorization of the Magnuson Stevens Fisheries Management and Conservation Act,
the President requests $20 million to implement the requirements of the legislation. This
includes funding to facilitate market-based approaches to fisheries management such as
Limited Access Privilege (LAP) programs that reduce cumbersome and inefficient
regulation that can lead to lengthened fishing seasons, improve product quality and
provide safer conditions for fishermen.

Accelerating scientific progress through the American Competitiveness Initiative: ACI is designed to
support basic research and world-leading facilities in the physical sciences to enable future breakthroughs
and provide economic security benefits. The President’s 2008 Budget increases funding for the ACI
research agencies by 7.1 percent to $11.4 billion in order to advance knowledge and technological
capabilities with broad scientific impact to maximize economic gains. Over 10 years, the ACI proposed an
increase of nearly $50 billion in innovation-enabling research in the National Science Foundation, the
Department of Energy, and the Department of Commerce's National Institute of Standards and Technology.
• National Nanotechnology Initiative: $1.45 billion, a 4.2 percent increase, to continue to support
discovery, development and application of nanotechnology through investigator-led fundamental
 and applied research; multidisciplinary centers of excellence; education and training of
nanotechnology researchers, teachers, workers, and the public; and infrastructure development,
including user facilities and networks that are broadly available to support research and innovation.
• Networking and Information Technology Research Program: $3.1 billion to plan and coordinate
agency research efforts in high-end computing systems, cyber security, large-scale networking,
software development, high-confidence systems, information management, and other information
technologies.
• The Department of Commerce's National Institute of Standards and Technology: $594 million, to
enhance nanotechnology manufacturing capabilities; expand a neutron facility to help characterize
novel materials; construct new, high-performance laboratories; and improve our understanding of
quantum information science that may dramatically improve computer processing speeds and
enable more secure communications.

Gathering the Most Accurate Economic and Demographic Data: Accurate information about U.S.
economic and demographic conditions compiled by the Bureau of Economic Analysis (BEA) and the
Census Bureau is necessary for well-informed business and government decisions. The President’s 2008
Budget provides:
• $797 million, a $285 million increase over the 2007 Budget, to continue preparations for a re-
engineered, short-form only 2010 Census, including the 2008 Dress Rehearsal, continued
development of handheld computers and the opening of regional offices;
• $128 million, $46 million over the 2007 Budget, for the data collection phase of the Economic
Census;
• An $8 million initiative in BEA and Census to improve the accuracy and comprehensiveness of
statistics on the U.S. economy by closing the gap in service sector coverage and better
incorporation of research and development investments in GDP.

Protecting Intellectual Property Rights: The President’s 2008 Budget furthers intellectual property
protection through the issuance of patents and registration of trademarks by:
• Providing PTO full access to its fees and a $72 million increase over the 2007 Budget in order to
continue to improve the processing times and quality of patents and trademarks;
• Supporting the work of the National Intellectual Property Law Enforcement Coordinating Council in
coordinating the intellectual property protection efforts across the Government and the Strategy
Targeting Organized Piracy (STOP!) initiative’s efforts against global piracy and counterfeiting.

Opening New Markets: The Budget supports the International Trade Administration’s efforts to help open
and expand foreign markets for U.S. goods and services. Since 2001 the Administration has actively
promoted a free-trade agenda that opens new markets for American farmers, manufacturers, and service
providers.
 VETERANS

The President’s 2008 Budget increases funding for and expands the services provided to our
veterans by:
• Expanding access to health care for veterans;
• Improving benefits for veterans and their families; and
• Ensuring an easy transition for veterans leaving the military.

Veterans have helped to shape the American character, and their service represents the highest form of
patriotism. The President’s Budget provides additional resources to build upon the significant benefit
enhancements and modernization achieved since 2001.

Expanding access to health care for veterans:

• $36.6 billion to provide medical care to America’s veterans, an increase of 83 percent since the
President took office in 2001.
• $1.3 billion to provide veterans from all combat eras with more prosthetics and sensory aids.
• $3 billion addresses the increased need for mental health care services for veterans.
• $750 million for the construction of medical facilities located where veterans need them the most.

Improving benefits for veterans and their families:

• $37 billion in tax free disability benefits for veterans and their beneficiaries and increased
administrative funding to reduce the processing time of veteran’s claims so they can receive
benefits more quickly.
• National Cemetery Expansion Act: Establish six new national cemeteries to advance the
President’s goal of ensuring most veterans have a final resting place within 75 miles of their home.
The Greatest Generation of Americans who served our Nation in WWII and the Korean conflict
deserve a hallowed resting place.

Ensuring an easy transition for veterans leaving military service:

• Veterans Affairs outreach programs will ensure that returning combat veterans access care quickly
and with minimal paperwork.
• Decreasing the time it takes for the Defense Department to provide Veterans Affairs with a
servicemember’s deactivation and separation data. This lessens the burden on a veteran for
providing this information and will allow them to receive benefits and services more quickly.
 HOUSING
The President’s 2008 Budget provides housing assistance to millions of Americans by
continuing to support the Administration’s top housing priorities, including:
• Meeting America’s most critical housing needs;
• Supporting homeownership through increased resources and program innovations; and
• Working to end chronic homelessness.

Meeting America’s most critical housing needs:

• Overall Housing Assistance: The Budget continues to provide housing assistance to over 5 million
low-income families across HUD’s programs.
• Section 8 Vouchers: The Section 8 program provides rental support to 2 million low-income
families and individuals, offering stability and the opportunity to move toward self-sufficiency.
o In addition to the proposed $16 billion for the program – an increase of over $900 million
over the current 2007 level – the Budget would release unused excess balances at public
housing authorities (PHAs) enabling approximately 180,000 additional low-income families
to receive housing assistance.
o Proposed reforms will align incentives for PHAs to utilize their funds and assist more low-
income families.

Supporting homeownership through increased resources and program innovations:

• HOME Investment Partnership Program: The Budget provides nearly $2 billion for the HOME block
grant program – an increase of over $150 million – to expand the supply of affordable rental and
owner-occupied housing and provide rental assistance to low-income families and individuals.
o American Dream Downpayment Initiative (ADDI): As part of the HOME program, ADDI
increases the number of minority and first-time homebuyers by helping low-income people
overcome barriers to homeownership, such as down payment and closing costs.
• Federal Housing Administration (FHA) Mortgage Program: The Budget proposes changes to FHA’s
Mortgage Program that will help increase homeownership, particularly among minorities and first-
time homebuyers, by expanding access to mortgage credit.

Working to end chronic homelessness:

• Homeless Assistance Grants: By creating new supportive housing options, the Administration
continues its commitment to end chronic homelessness. The Budget proposes $1.6 billion, an
increase of more than $200 million, to address the housing and service-related needs of the entire
homeless population.
 LABOR

The President’s 2008 Budget will support America’s workers and their communities by:
• Protecting workers;
• Reforming the job training system and training workers for high-growth jobs as part of the
American Competitiveness Initiative;
• Safeguarding workers’ pensions; and
• Reducing improper unemployment insurance benefit payments.

Since the President’s tax relief took effect in mid-2003, the economy has created more than 7 million new
jobs. The President’s 2008 Budget provides additional resources to protect workers and proposes reforms
to train more workers, strengthen the pension system, and reduce improper payments in the unemployment
insurance system.

Protecting workers:
• The Budget includes $1.5 billion to enforce labor laws that protect workers’ wages, benefits, and
working conditions, including:
o Miner Act: $36 million increase for the Mine Safety and Health Administration, to ensure
safe conditions in the Nation’s mines.
o Paycheck Protection: $11 million increase for the Office of Labor Management Standards
to ensure the proper, legal, and transparent use of union members’ dues and assets

Reforming the job training system and training workers for high-growth jobs as part of the
American Competitiveness Initiative:
• The 2008 Budget proposes significant reforms to the Department of Labor’s major job training
grant programs that will give States more flexibility, reduce bureaucracy, and increase individual
choice through Career Advancement Accounts.
o These reforms will save almost half a billion dollars while significantly increasing the
training opportunities available to workers to over 600,000.
• The Budget includes $150 million to continue the Community-Based Job Training Grants program,
which helps community and technical colleges train more workers for jobs in demand in local and
regional economies.

Safeguarding workers’ benefits:

• The 2008 Budget reflects the President’s continued commitment to restoring the solvency of the
pension insurance system and avoiding a future taxpayer bailout by proposing to adjust premiums
paid by companies under funded pension plans.

Reducing improper unemployment insurance benefit payments and enhancing unemployment tax
integrity:
The Budget proposes a package of legislative changes that would reduce Unemployment Insurance (UI)
improper payments by $4.8 billion and reduce employer tax evasion by almost $400 million over 10 years.
The legislative proposal would:
• Impose a penalty for UI benefit overpayments resulting from fraud;
• Enlist private collection agencies in the recovery of fraud overpayments;
• Penalize employers when their repeated inaction leads to overpayments to former employees;
• Collect delinquent benefit overpayments and unemployment taxes through garnishment of Federal
income tax refunds;
• Allow States to use a portion of recovered funds on fraud and error reduction; and
• Decrease benefit overpayments by providing more accurate date-of-hire information in State and
national new hire directories so that States can quickly stop unemployment benefit payments to
those people who have gone back to work.
 TRANSPORTATION

The President’s 2008 Budget will facilitate safer and faster transportation by:
• Building a more efficient air traffic control system to meet the air travel demands of the future;
• Exploring new ways to reduce highway congestion and increase fuel efficiency; and
• Focusing Amtrak’s spending priorities.

Building a more efficient air traffic control system to meet the air travel demands of the future:
• Federal Aviation Administration’s (FAA) Reauthorization: The Administration will soon transmit a
reauthorization proposal that would change the FAA current excise tax financing into a more cost-
based system by 2009. By moving away from excise taxes based on ticket prices, the new system
would charge commercial users a user fee calibrated to the cost of providing air traffic control
services to those aircraft, and would charge general aviation users a fuel tax calibrated to cover
their costs.
• Next Generation Air Transportation System (NextGen): $175 million to support multi-agency effort
to transform air traffic management to accommodate demand and improve air transportation safety
and security.

Exploring new ways to reduce highway congestion and increase fuel efficiency:
• Highway Congestion Initiative: $175 million would be made available to demonstrate innovative
ways to reduce traffic congestion. Successful programs will be the blueprints for future larger scale
efforts to reduce traffic in other municipalities. Also included is the Corridors of the Future program
that will provide innovative financial assistance to fund congestion reduction projects in DOT
selected high-growth corridors.

• Reforming And Modernizing Corporate Average Fuel Economy (CAFE) Standards For Cars And
Extending The Current Light Truck Rule: To support the President’s "Twenty In Ten" Plan to
reduce U.S. gasoline usage by 20 percent in the next ten years, DOT will propose to reform CAFE
standards for cars, as has been done for light trucks. These reforms will reduce projected annual
gasoline use by up to 8.5 billion gallons. In combination with increasing the supply of renewable
and alternative fuels, reforming fuel economy standards will bring the total reduction in projected
annual gasoline use to 20 percent.

• Both these efforts will also help address climate change concerns by potentially stopping the
projected growth of carbon dioxide emissions from cars, light trucks, and SUVs.

Focusing Amtrak’s spending priorities:

• $900 million to improve the nation’s inter-city passenger rail system -- only $800 million is for
Amtrak directly.
• Of the $800 million for Amtrak:
o $300 million is requested for operating costs, which is part of a multi-year plan to reduce
operating subsidies. The Budget insists that Amtrak reduce its reliance on Federal
operating assistance and be more accountable in its spending and management.
 o $500 million is for capital expenses, including primarily the Northeast Corridor rehabilitation
program.
• $100 million is requested for a new matching grant program to help States fund intercity passenger
rail infrastructure projects.