Presidential Pledges to Cut Federal Programs Often Prove Tough to Fulfill

Strategic Insights -

Despite President Bush's claims to be committed to eliminating unneeded or wasteful federal programs, the administration has struggled to cut spending in recent years. In each of the past three years, the President has proposed axing the Advanced Technology Program, but Congress has restored the funding. The program, which provides grants to corporations for cutting-edge research, is this year 24% smaller than in 2004 but still manages to secure $136 million in funding.

Key Takeaways:

  • The Advanced Technology Program, which provides grants for cutting-edge research, has been proposed for elimination by President Bush three years in a row, but Congress has consistently restored the funding.
  • Despite the President's claims, the program still received $136 million in funding this year, down 24% from 2004.
  • The program's backers argue that the grants help U.S. companies remain competitive in world technology markets, with over 40% of the funding going to Fortune 500 companies such as IBM, General Electric, and General Motors.
  • The program has cost U.S. taxpayers over $2 billion since its creation in 1989, with many arguing that the corporations involved could have afforded to finance their research themselves.
  • The program's proponents point to several high-tech products developed with ATP funding, such as the world's first digital mammography machine and the world's first laser-guided boring machine used to make engines.
  • The program's survival highlights the challenges of cutting federal spending, with the government running a $412 billion deficit last year.
  • The proposed elimination of 65 programs by President Bush last year was widely unsuccessful, with only one program, a $14 million grant program for developing new information technologies, being cut.

Statistics:

  • The Advanced Technology Program received $136 million in funding this year.
  • The program is 24% smaller than in 2004.
  • The program has cost U.S. taxpayers over $2 billion since its creation in 1989.
  • More than 40% of the program's funding has gone to Fortune 500 companies such as IBM, General Electric, and General Motors.
  • The proposed elimination of 65 programs by President Bush last year would have saved $4.9 billion, but only one program was actually cut.

Sources:

  • "Washingtion Post"
  • "Financial Dynamics"
  • "Heritage Foundation"
  • "USA TODAY"
  • "Gannett News Service"
  • "AP"