FISCAL YEAR 2002 BUDGET BUDGET OF THE UNITED STATES GOVERNMENT THE BUDGET DOCUMENTS Budget of the United States Government, Fiscal Year 2002 A Citizen's Guide to the Federal Budget, Budget of the contains the Budget Message of the President and information on United States Government, Fiscal Year 2002 provides general the President's 2002 proposals by budget function. information about the budget and the budget process. Analytical Perspectives, Budget of the United States Govern- Budget System and Concepts, Fiscal Year 2002 contains an ment, Fiscal Year 2002 contains analyses that are designed to high- explanation of the system and concepts used to formulate the Presi- light specified subject areas or provide other significant presentations dent's budget proposals. of budget data that place the budget in perspective. The Analytical Perspectives volume includes economic and account- Budget Information for States, Fiscal Year 2002 is an Office ing analyses; information on Federal receipts and collections; analyses of Management and Budget (OMB) publication that provides proposed of Federal spending; detailed information on Federal borrowing and State-by-State obligations for the major Federal formula grant pro- debt; the Budget Enforcement Act preview report; current services grams to State and local governments. The allocations are based estimates; and other technical presentations. It also includes informa- on the proposals in the President's budget. The report is released tion on the budget system and concepts and a listing of the Federal after the budget. programs by agency and account. Historical Tables, Budget of the United States Government, AUTOMATED SOURCES OF BUDGET INFORMATION Fiscal Year 2002 provides data on budget receipts, outlays, sur- pluses or deficits, Federal debt, and Federal employment over an The information contained in these documents is available in extended time period, generally from 1940 or earlier to 2006. To electronic format from the following sources: the extent feasible, the data have been adjusted to provide consist- CD-ROM. The CD-ROM contains all of the budget documents and ency with the 2002 Budget and to provide comparability over time. software to support reading, printing, and searching the documents. The CD-ROM also has many of the tables in the budget in spread- Budget of the United States Government, Fiscal Year 2002Ð Appendix contains detailed information on the various appropria- sheet format. tions and funds that constitute the budget and is designed primarily Internet. All budget documents, including documents that are for the use of the Appropriations Committee. The Appendix contains released at a future date, will be available for downloading in several more detailed financial information on individual programs and ap- formats from the Internet. To access documents through the World propriation accounts than any of the other budget documents. It Wide Web, use the following address: includes for each agency: the proposed text of appropriations lan- http://www.whitehouse.gov/omb/budget guage, budget schedules for each account, new legislative proposals, explanations of the work to be performed and the funds needed, For more information on access to electronic versions of the budget and proposed general provisions applicable to the appropriations of documents (except CD±ROMs), call (202) 512±1530 in the D.C. area entire agencies or group of agencies. Information is also provided or toll-free (888) 293±6498. To purchase a CD±ROM or printed docu- on certain activities whose outlays are not part of the budget totals. ments call (202) 512-1800. GENERAL NOTES 1. All years referred to are fiscal years, unless otherwise noted. 2. Detail in this document may not add to the totals due to rounding. U.S. GOVERNMENT PRINTING OFFICE WASHINGTON 2001 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: (202) 512±1800 Fax: (202) 512±2250 Mail: Stop SSOP, Washington, DC 20402±0001 1 TABLE OF CONTENTS Page I. The Budget Message of the President ............................................................. 3 II. Budget Highlights ................................................................................................. 7 III. Creating a Better Government 1. Improving Government Performance .................................................. 11 2. National Defense ................................................................................... 19 3. International Affairs ............................................................................. 23 4. General Science, Space, and Technology ............................................. 29 5. Energy .................................................................................................... 37 6. Natural Resources and Environment .................................................. 45 7. Agriculture ............................................................................................. 53 8. Commerce and Housing Credit ............................................................ 61 9. Transportation ....................................................................................... 69 10. Community and Regional Development .............................................. 77 11. Education, Training, Employment, and Social Services .................... 83 12. Health .................................................................................................... 97 13. Medicare ................................................................................................. 105 14. Income Security ..................................................................................... 109 15. Social Security ....................................................................................... 115 16. Veterans Benefits and Services ............................................................ 121 17. Administration of Justice ..................................................................... 129 18. General Government ............................................................................. 137 19. Net Interest ........................................................................................... 143 20. Allowances ............................................................................................. 147 21. Undistributed Offsetting Receipts ....................................................... 149 22. Detailed Functional Tables .................................................................. 151 IV. Summary Tables .................................................................................................... 221 V. List of Charts and Tables .................................................................................... 245 VI. OMB Contributors to the 2002 Budget ............................................................ 249 i I. THE BUDGET MESSAGE OF THE PRESIDENT 1 THE BUDGET MESSAGE OF THE PRESIDENT To the Congress of the United States: This budget also retires the maximum amount of debt possible by providing the On February 28, 2001, I submitted A fastest, largest debt reduction in history, Blueprint for New Beginnings, which provided $2 trillion over 10 years. Debt held by the Congress with my budget plan to fund the public will be reduced to its lowest America's important priorities, reduce the share of the economy since World War I. debt by a historic amount, and provide fair After funding important priorities and retir- and responsible tax relief for the American ing all Government debt possible, my budget people. Today I am sending to the Congress uses the remaining portion of the surplus more details on my proposed budget. to provide fair and reasonable tax relief A budget is much more than a collection to every American who pays income taxes. of numbers. A budget is a reflection of My budget uses roughly one-fourth of the a nation's priorities, its needs, and its promise. budget surplus to provide the typical family This budget offers a new vision of governing of four $1,600 in tax relief. The American for our Nation. people have been overcharged for Government, and they deserve a refund. My budget strengthens and reforms edu- cation; preserves and protects Medicare and My budget does all these things, and Social Security; strengthens and modernizes more. I believe America's best days are our military; improves health care; and pro- yet to come, and I look forward to working tects our environment. Importantly, this budg- with the Congress in a bipartisan fashion et creates an unprecedented $1 trillion reserve to ensure that our Nation reaches its full for additional needs and contingencies. potential as we begin a new century. GEORGE W. BUSH April 9, 2001 3 II. BUDGET HIGHLIGHTS 5 II. BUDGET HIGHLIGHTS A New Approach to Budgeting Moderate Growth in Government and Fund National Priorities: • Moderates recent rapid growth in spending, while funding national priorities, paying down the debt, and providing tax relief. • Strengthens and reforms education, granting the Education Department the largest percentage spending increase of any Department (11.5 percent in- crease in 2002). • Saves the entire Social Security surplus ($2.6 trillion) and commits to reform- ing the program. • Spends every penny of Medicare tax and premium collections over next 10 years only on Medicare. Modernizes and reforms Medicare. • Restores commitment to military personnel and begins transition to a 21st Century force structure. • Champions compassionate