Bush sends Congress $3.1 trillion budget

Winners

defense ($35 billion increase)
homeland security (11% increase)
FDA (6% increase)

Losers

domestic appropriations (many services will likely be cut)
medicare and medicaid ($200 billion in cuts over the next 5 years)
education (frozen at $60 billion with no increase to account for inflation)

The story
President Bush introduced a $3.1 trillion budget on Monday that supports sizable increases in military spending to fight the war on terrorism and protects his signature tax cuts.
The spending proposal, which shows the government spending $3 trillion in a 12-month period for the first time in history, squeezes most of government outside of national security, and also seeks $196 billion in savings over the next five years in the government's giant health care programs -- Medicare for the elderly and Medicaid for the poor.
Even with those savings, Bush projects that the deficits, which had been declining, will soar to near-record levels, hitting $410 billion this year and $407 billion in 2009.

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