Text 2114, 201 rader
Skriven 2006-02-08 23:33:12 av Whitehouse Press (1:3634/12.0)
Ärende: Press Release (0602088) for Wed, 2006 Feb 8
===================================================
===========================================================================
President Signs S.1932, Deficit Reduction Act of 2005
===========================================================================

For Immediate Release
Office of the Press Secretary
February 8, 2006

President Signs S.1932, Deficit Reduction Act of 2005
The East Room


˙˙˙˙˙Fact Sheet: President Bush Signs Deficit Reduction Act
˙˙˙˙˙In Focus: 2007 Budget
˙˙˙˙˙In Focus: Jobs and Economy

3:31 P.M. EST

THE PRESIDENT: Thanks for coming. Welcome to the White House. In a few
moments, I will sign the Deficit Reduction Act of 2005. This important
piece of legislation restrains federal spending -- and it will leave more
money in the pockets of those who know how to use it best, the American
people.

I appreciate the Vice President being here. Mr. Speaker, welcome. Leader
Frist, thank you all for coming. Senator McConnell and Senator Santorum,
Senator Judd Gregg, Chairman of the Senate Budget Committee, Congressman
John Boehner, the House Majority Leader, Roy Blunt, House Majority Whip,
Congressman Nussle, Chairman of the House Budget Committee, I want to thank
you all for coming. I appreciate the members of the Cabinet who are here,
as well as all the members of the United States Congress and the Senate who
have come for this important bill signing.

Our economy is strong and it's getting stronger. We're now entering our
fifth year of uninterrupted economic growth, and last year our economy grew
at a healthy 3.5 percent. Real after-tax income is up nearly 8 percent per
American since 2001. Productivity growth is high, small businesses are
thriving. America has added 4.7 million new jobs over the last
two-and-a-half years, and the unemployment rate is down to 4.7 percent --
the lowest level since July 2001.

Our economy leads the world, yet we cannot be complacent. To keep our
economic momentum, we need to look at the challenges down the road and
respond with wise policies now. And one of the most important policies we
need to pursue is spending restraint in Washington, D.C.

Earlier this week, I sent Congress a disciplined federal budget for 2007,
and this morning, I traveled to New Hampshire with Chairman Gregg, Senator
Sununu, Congress Bass and Congressman Bradley to discuss the new budget
proposal in detail. The budget strategy begins with keeping taxes low, so
that Americans can spend, save, and invest more of their own money -- and
that will help keep our economy growing and creating jobs. My budget funds
our priorities -- starting with funding the United States military,
promoting alternative sources of energy, investing in math and science
education and basic research, and helping to care for the poor and the
elderly.

At the same time, my budget tightens the belt on government spending. Every
American family has to set priorities and live within a budget -- and the
American people expect us to do the same right here in Washington, D.C.

The federal budget has two types of spending -- discretionary spending and
mandatory spending. Discretionary spending is the kind of spending Congress
votes on every year. Last year, Congress met my request and passed bills
that cut discretionary spending not related to defense or homeland security
-- and this year, my budget again proposes to cut this spending. My budget
also proposes again to keep the growth in overall discretionary spending
below the rate of inflation, so we can stay on track to cut the deficit in
half by 2009.

In the long run, the biggest challenge to our budget is mandatory spending
-- or entitlement programs like Medicare and Medicaid and Social Security.
Entitlement spending is determined by a specific formula, and it rises
automatically year after year unless the Congress intervenes. Together,
Medicare, Medicaid, and Social Security are now growing faster than the
economy, faster than the population, and nearly three times the rate of
inflation. And the retirement of baby boom generation will put even more
strains on these programs. By 2030, spending for Medicare, Medicaid, and
Social Security alone will be almost 60 percent of the entire federal
budget. And that will leave future generations with impossible choices --
staggering tax increases, immense deficits, or deep cuts in every category
of spending.

Bringing entitlement spending under control is a critical priority of our
government. We need to slow the annual growth of entitlement programs to
levels that we can afford -- we do not need to cut those programs. There is
an important distinction -- it is the difference between slowing your car
down to the speed limit, or putting your car into reverse. By making wise
reforms that will reduce the annual growth of mandatory spending, the
Deficit Reduction Act will save taxpayers nearly $40 billion over the next
five years -- that's about $300 per taxpayer.

The Deficit Reduction Act is estimated to slow the pace of spending growth
in both Medicare and Medicaid. Medicare is a federal program that provides
health care for older Americans. Medicaid is a program administered in
conjunction with the states that provides health care for low-income
Americans, family with children, and some seniors. These programs are
providing vital services to millions of Americans in need -- yet the costs
of Medicare and Medicaid are straining budgets at both the state and
federal level. The bill I sign today restrains spending for entitlement
programs, while ensuring that Americans who rely on Medicare and Medicaid
continue to get the care they need.

The Deficit Reduction Act is estimated to reduce the growth in Medicare
spending by more than $6 billion over the next five years. The bill,
together with the Medicare act of 2003, requires wealthier citizens to pay
higher premiums for their Medicare coverage. The savings created by this
reform and others will make it possible to increase federal funding for
important areas like kidney dialysis and rural hospitals. With this bill,
we're showing that we can keep the promise of Medicare and be good stewards
of the taxpayer's money at the same time.

The Deficit Reduction Act will also reduce the growth in Medicaid spending
by nearly $5 billion over the next five years. The bill helps restrain
Medicaid spending by reducing federal overpayment for prescription drugs.
Taxpayers should not have to pay inflated markups for the medicine that the
people on Medicaid depend. The bill gives governors more flexibility to
design Medicaid benefits that meet the needs of their states efficiently
and affordably. The bill tightens the loopholes that allowed people to game
the system by transferring assets to their children so they can qualify for
Medicaid benefits. Along with governors of both parties, we are sending a
clear message: Medicaid will always provide help for those in need, but we
will never tolerate waste, fraud, or abuse.

The Deficit Reduction Act's reforms in Medicare and Medicaid are a step on
the road to long-term stability for these important programs. Now we need
to continue finding ways to make Medicare and Medicaid more efficient. My
budget next year proposes another $36 billion in savings on Medicare, and
more than a billion dollars in savings on Medicaid. My budget proposals
will slow the average annual growth in Medicare over the next five years
from 8.1 percent to 7.7 percent. That seems reasonable. And together with
the bill I sign today, my budget will slow the average annual growth of
Medicaid over the next five years from 6.9 percent a year to 6.6 percent a
year. This is progress in the right direction, but these growth rates are
still unsustainable.

In the long run, ensuring the stability of Medicare and Medicaid requires
structural reform. So I have proposed a bipartisan commission to examine
the full impact of baby boomer retirements on Medicare and Medicaid, as
well as Social Security. The commission will include members of Congress
from both political parties. It will recommend long-term solutions that
will keep the promise of these vital programs while addressing their
growing costs. I look forward to working with Congress to get this problem
solved for generations to come.

As the Deficit Reduction Act delivers savings in mandatory spending, it
also shows the compassion of America. This bill provides new resources for
programs that serve some of our citizens with the greatest needs --
including hurricane victims, children, and low-income families struggling
to pay their heating bills.

The Deficit Reduction Act makes important improvements to federal student
loan programs. The bill cuts excess government subsidies to lenders and
makes other reforms that will help us reduce overall student loan costs by
about $22 billion. With that money, we will save taxpayers $12 billion --
because we intend to increase student aid by 10 additional billion dollars.
What I'm telling you is, the students are getting the money, and we're
making the program a lot more efficient for the taxpayers.

The Deficit Reduction Act also reauthorizes welfare reform for another five
years. Welfare reform has proved a tremendous success over the past decade.
By insisting on programs that require work and self-sufficiency in return
for federal aid, we have helped cut welfare cases by more than half since
1996. Now we're building on that progress by renewing welfare reform with a
billion dollar increase in child care funding, and new grants to support
healthy marriage and responsible fatherhood programs.

One of the reasons for the success of welfare reform is a policy called
charitable choice -- which allows faith-based groups that provide social
services to receive federal funding without changing the way they hire. Ten
years ago, Congress made welfare the first federal program to include
charitable choice. The bill I sign today will extend charitable choice for
another five years, and expand it to the new healthy marriage and
responsible fatherhood programs. I appreciate the hard work of all who
supported the extension of charitable choice -- including the good-hearted
men and women of the faith-based community who are here today. By
reauthorizing welfare reform with charitable choice, we will help millions
more Americans move from welfare to work -- and find independence, and
dignity, and hope.

The message of the bill I sign today is straightforward: By setting
priorities and making sure tax dollars are spent wisely, America can be
compassionate and responsible at the same time. Spending restraint demands
difficult choices -- yet making those choices is what the American people
sent us to Washington to do. One of our most important responsibilities is
to keep this economy strong and vibrant and secure for our children and our
grandchildren. We can be proud that we're helping to meet that
responsibility today.

Now I ask the members of Congress to join me as I sign the Deficit
Reduction Act of 2005.

(The Act is signed.) (Applause.)

END 3:43 P.M. EST

===========================================================================
Return to this article at:
http://www.whitehouse.gov/news/releases/2006/02/20060208-8.html

 * Origin: (1:3634/12)