On Monday, February 7, 2005, the Bush Administration sent to Congress its budget request for fiscal year 2006. Under the proposed budget, discretionary spending would increase overall

by 2%.Within
that increase, Pentagon spending would increase by 5% ($19 billion), homeland
security by 3% ($1 billion), and
all other federally-funded services would be cut by 1%, before taking inflation
into account. The Department of
Defense increase does not include funding for the wars in Iraq or
Afghanistan.

Discretionary spending is the part of the budget which
Congress decides on each year. Mandatory spending is guided by funding rules set up by Congress
periodically.

Total federal spending (including mandatory) would increase
by 2% ($70 billion) under this budget request, before taking inflation into
account. Large increases include
health ($33 billion), Medicare ($51 billion), and net interest payments on the
debt ($33 billion). Cuts include
natural resources and the environment; education, training, employment, and
social services; community and regional development; and transportation.

Discretionary federal grants to state and local government
would be cut by almost 7% (almost 9% after taking inflation into account). Total federal grants (including
mandatory) would increase slightly under the budget proposal, but this increase
is primarily due to the increases in Medicaid grants to states, driven by
rising health care costs.

Federal grants that would be cut include vocational and
adult education, a number of programs associated with community development,
environmental protection agency grants, low-income home energy assistance,
disease control, substance abuse, OSHA, and public safety.

The tables below breakdown the impact of the budget request
by state across a variety of issues. The first one indicates the cuts in total
discretionary federal grants by state, and the other tables take a look at a
particular program or group of programs.

Tables
Discretionary Federal Grants to State and Local Governments
Clean Water State Revolving Fund
No Child Left Behind
Low-Income Home Energy Assistance Program
Community and Economic Development
Charts
Proposed Total Federal Budget, FY2006
Proposed Discretionary Budget, FY2006
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