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Bush, George W.

Bush's Budget Cuts Hit Hard on Agriculture, Transport and Environmental Protection

Strategic Insights

— 2 min read

President George W. Bush's attempts to rein back on spending in the budget have resulted in significant cuts to various departments, particularly agriculture, transport and environmental protection. The commitment to a 7% rise in defence spending has led to a squeeze on other spending departments, with the Department of Agriculture suffering the biggest cut of any of the larger departments. The budget also proposes cuts to transport, with plans for spending to fall by 3.9% to $13.3 billion, and funds available to the Environmental Protection Agency would fall by 7.2% to $7.8 billion.

Key Takeaways:

  • The Department of Agriculture will suffer an 8.1% fall in proposed spending from $20.7 billion to $19.1 billion.
  • The crop insurance fund, which subsidises premiums for coverage against drops in crop prices, will be cut by 6.9% to $3.7 billion.
  • Resources allocated to the forest service will be cut by 7.6% to $4.2 billion.
  • Transport plans will be cut by 3.9% to $13.3 billion, despite a proposal to increase spending on highways and transit over the next six years from $247 billion to $256 billion.
  • The Environmental Protection Agency will have its funds cut by 7.2% to $7.8 billion.
  • All justice programs will be cut by 3.1% to $18.7 billion, despite a 19% rise in counterterrorism spending to $2.6 billion.
  • President Bush has never vetoed a spending plan by Congress and some are doubtful that he will be prepared to do so during an election year.

Statistics:

  • Defence spending has already risen by $150 billion (€121 billion, £82 billion) over the past three years.
  • defence spending is set to increase by 7% from the current budget to $150 billion (€121 billion, £82 billion).
  • The deficit is expected to be halved over the next five years.
  • Crop insurance fund will be cut by 6.9% to $3.7 billion.
  • Resources allocated to the forest service will be cut by 7.6% to $4.2 billion.
  • Transport plans will be cut by 3.9% to $13.3 billion, in spite of a proposal to increase spending on highways and transit over the next six years from $247 billion to $256 billion.
  • Environmental Protection Agency funds will be cut by 7.2% to $7.8 billion.
  • Justice programs will be cut by 3.1% to $18.7 billion.

Sources:

  • The Washington Post
  • The Wall Street Journal
  • The New York Times
  • President George W. Bush's Budget Proposal
  • Chris Edwards, director of fiscal studies at the Cato Institute
  • Alison Fraser, director of economic policy research at the Heritage Foundation

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