$142 Billion to Make U.S. More Competitive

Feb. 2, 2006 — -- President Bush hit the road following his State of the Union address on Tuesday to promote his 2006 agenda.

As part of that plan, the president unveiled a series proposals on Thursday that call for spending $5.9 billion in 2007 and $136 billion over the next 10 years on programs intended to keep America competitive in the changing world economy. The administration has called the $142 billion spending package the American Competitiveness Initiative.

"It's important for us not to fear competition but welcome it," Bush said in a speech to workers at the 3M Corp. in Maplewood, Minn.

The Small Print

Here are some of the numbers behind the American competitiveness initiative.

Research

"Innovation is a vital part of the future of the USA," the president told the Maplewood audience. "And a fundamental question is how do we keep our society innovative?"

The initiative asks Congress to increase funds for research and development in the sciences and engineering. The White House fact sheet says, "The centerpiece of the American Competitiveness Initiative is the president's strong commitment to double over 10 years investment in key federal agencies that support basic research programs in the physical sciences and engineering."

But in a conference call with reporters, Secretary of Commerce Carlos Gutierrez said that of the $5.9 billion the president has requested for the program in next year's budget, only $910 million would support research. Most of the money would go to private industry in the form of tax breaks.

In 2007 alone, industry would get $4.6 billion in tax breaks for research and development. Over 10 years, that would become an $86 billion tax break.

According to the administration, the tax break is necessary to encourage "bolder private sector investment in technology." And it pointed out that an earlier research and development tax break had expired.

Education

The program also wants to encourage a "well-educated and skilled work force." As part of the initiative, the president outlined a plan to train an additional 70,000 advanced placement teachers in math and science over the next five years. And over the course of the next eight years, the initiative would encourage 30,000 people trained in math and science to become adjunct high school teachers. In his comments in Minnesota today, the president said he would ask Congress to appropriate the money necessary to train these teachers.

But Secretary of Education Margaret Spellings said Wednesday that only $380 million would be earmarked for the education component of this effort. And the plan outlined no funding for the president's ambitious education goals beyond 2007.

"The education program funding in this ... has not been included in the out years. That doesn't mean it will go back to zero," said Spellings.

Immigration

The plan also asked for Congress increase the number of highly skilled immigrants allowed to stay and work in the United States.

"I encourage Congress to be reasonable and realistic," Bush said in Minnesota. "We ought to be wise about letting kids come here who have the skill sets to do the jobs that allow us to be one of the leaders in the world."

It's a potentially contentious issue for a Congress already divided on the question of the president's proposed guest worker program for low-skilled workers.

The details of the initiative will be released in next week's budget proposal.

You can read the full American Competitiveness Initiative by clicking here.