With unflagging confidence despite a major budgetary defeat only three days earlier, President George W. Bush released the details of his $1.96 trillion 2002 budget April 9.

On April 6, the Senate showed a strong streak of independence when it slashed Bush's much-touted tax-cut plan from $1.6 trillion over 10 years down to $1.289 trillion. Under his 2002 budget plan, now under congressional review, Bush has set a cap of 4 percent for increases in discretionary spending over 2001 levels. Whether and how Congress heeds that proposed total-increase cap of $660.7 billion will keep political pundits gainfully employed for months to come. It is important to note now, however, that because of the 4 percent cap, several programs that affect the design community are marked for cuts or elimination.

Education: The Department of Education has an allocation of $44.5 billion under the Bush plan. This would be an increase of $4.6 billion, or 11.5 percent over 2001, the largest increase of any Cabinet-level agency, which is consistent with the priority the president has placed on education. Under the Bush proposal, however, the $1.2 billion School Renovation Grant Program approved by Congress late last year would be eliminated. This program—for which the AIA lobbied successfully—was earmarked specifically to help states modernize, renovate, and construct schools. Bush's shift away from specific federal support for improving school facilities could contribute to the continuing deterioration of today's schools even as our student population is ballooning.

Environment: The proposed 2002 Environmental Protection Agency (EPA) funding level of $7.3 billion would be $56 million more than the year before. Under the department's jurisdiction, Bush would increase funds for brownfields development from $92 million to $97.4 million. EPA Administrator Christine Todd Whitman has placed the administration's support behind the "Brownfields Revitalization and Environmental Restoration Act of 2001" (S. 350), sponsored by Senator Lincoln Chafee (R-R.I.) and Senator Bob Smith (R-N.H.). If enacted, S. 350 would provide $50 million to the states to support state cleanup programs. The president has also expressed a desire to save money by making cleanup easier through liability reform and by streamlining procedures. In all, this should be a successful year for brownfields legislation. Architects will have the opportunity to play an integral part in redeveloping communities.

Housing and Urban Development (HUD): HUD would receive a total of $30 billion for FY02. This represents an additional $1.9 billion over FY01. The Bush budget for HUD has a mixed bag of programs affecting the design community. Brownfields, for instance, still get support in the HUD budget. The president would maintain the current funding level of $25 million in HUD's budget for restoration of abandoned or underused industrial sites. Other proposal items of interest include:

• Community Development Block Grants (CDBG)—Bush's budget proposal would reduce the CDBG from its current level of $5.1 billion to $4.8 billion. This HUD program provides federal dollars to communities for investment in housing, healthy living conditions, and economic opportunities.
• HOPE VI—Bush has proposed to maintain the current funding level of HOPE VI, which is $575 million. The HOPE VI program was developed as a result of recommendations by the National Commission on Severely Distressed Public Housing, which was charged with proposing a national action plan to eradicate such housing.
• Community Technology Centers Initiative—The president's budget proposal would provide $80 million in competitive grants to create and expand community technology centers in high-poverty areas.

Transportation: The Department of Transportation would receive $59.5 billion, a 6 percent increase over last year's funding level. According to a recent report by the U.S. Conference of Mayors, highways would receive $31.6 billion; aviation, $13 billion; transit, $6.6 billion; and Amtrak would receive $521 million for capital projects and maintenance. The money allocated is based on guaranteed spending levels set forth in the TEA-21 law.

In accordance with the Aviation Investment and Reform Act for the 21st Century (AIR 21), the budget includes $3.3 billion for the Airport Improvement Program, the main grant program for airport construction, and $2.9 billion for facilities and equipment.

The president has proposed a new initiative, the "New Starts Program," to provide $1.1 billion in capital funds for local agencies to construct local and regional rail and other fixed guide-way transit projects. In addition, Bush requested that beginning in 2004, the nonfederal match for new-start rail projects be increased from 20 to 50 percent to spread federal funds further. This change in matching requirements, however, would put more strain on localities interested in developing light rail.

Under the President's "New Freedom Initiative," $145 million would be provided to improve transportation choices for people with disabilities.

New Markets Initiative: The proposed budget would drastically reduce funding for the Community Development Financial Institutions (CDFI) Fund, from $118 million to $68 million. CDFI seeks to promote economic revitalization and community development in distressed areas through programs like the New Markets Tax Credit. The recently enacted tax credit provides incentives to draw investors to designated "empowerment zones." It was expected to stimulate $15 billion in new private capital investment over the next 10 years.

Federal Emergency Management Agency (FEMA): FEMA's core operations would remain at its current $2.2 billion level under Bush's proposal. However, several programs within FEMA could see severe cuts or termination. The president proposes eliminating the popular Project Impact, which awards grants to communities for creating projects that help mitigate potential threats before a disaster strikes—such as retrofitting buildings, roads, and bridges; planning and training for local emergency personnel—and public education campaigns to make people aware of potential hazards. Bush expects to save $25 million by ending the program. The president also proposed reserving $3.9 billion in an emergency fund for major natural disasters.

Copyright 2001 The American Institute of Architects. All rights reserved.