STATEMENT

BEFORE THE

HOUSE L/HHS APPROPRIATIONS SUBCOMMITTEE

TOMMY G. THOMPSON

SECRETARY

DEPARTMENT OF HEALTH AND HUMAN SERVICES

MARCH 6, 2002

(RELEASE UPON DELIVERY)

I am

Good Morning Chairman Regula, Congressman Obey and members of the Committee. honored to appear before you today to discuss the President's FY 2003 budget for the Department of Health and Human Services. I am confident that a review of the full details of our budget will demonstrate that we are proposing a balanced and responsible approach to ensuring a safe and healthy America.

Before I discuss the FY 2003 budget, I would like to thank the committee for its hard work and dedication to the programs at HHS. Over the past year, I have come to really appreciate your support and interest in the issues and health needs of the American people. Like you, I believe in the services HHS programs provide including our commitment to the war against bioterrorism. I look forward to furthering our relationship and building on the successes achieved during the

past year.

The budget I present to you today fulfills the promises the President has made and proposes creative and innovative solutions for meeting the challenges that now face our nation. Since the September 11th attacks we have dedicated much of our efforts to ensuring that the nation is safe. HHS was one of the first agencies to respond to the September 11th attacks on New York City, and began deploying medical assistance and support within hours of the attacks. Our swift response and the overwhelming task of providing needed health related assistance made us even more aware that there is always room for improvement. The FY 2003 budget for the Department of Health and Human Services builds on President Bush's commitment to ensure the health and safety of our nation.

The FY 2003 budget places increased emphasis on protecting our nation's citizens and ensuring safe, reliable health care for all Americans. The HHS budget also promotes scientific research, builds on our success in welfare reform, and provides support for childhood development while delivering a responsible approach for managing HHS resources. Our budget plan confronts both the challenges of today and tomorrow while protecting and supporting the well being of all

Americans.

Mr. Chairman, the total HHS request before this committee for FY 2003 is $312.1 billion in outlays. The discretionary component of the HHS budget totals $59.5 billion in budget authority, which is an increase of $2.3 billion, or +4.1 percent over FY 2002. The mandatory component before this committee totals $252.7 billion, which is an increase of $19.4 billion or +8.3 percent. Let me now discuss some of the highlights of the HHS budget and how we hope to achieve our goals.

PROTECTING THE NATION AGAINST BIOTERRORISM

Mr. Chairman, as you know, the Department of Health and Human Services is the lead federal agency in countering bioterrorism. In cooperation with the States, we are responsible for preparing for, and responding to, the medical and public health needs of this nation. The FY 2003 budget for HHS bioterrorism efforts is $4.3 billion, an increase of $1.3 billion, or 45 percent, above FY 2002. The amount before this committee totals $4.1 billion. This budget supports a variety of activities to prevent, identify, and respond to incidents of bioterrorism. These activities are administered through the Centers for Disease Control and Prevention (CDC), the

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Services Administrator, HRSA, and the Food and Drug Administrator FDA These efforts will be directed by the newly estabushed Othce of Pubuc Healt: Preparedness "OPHP;

On January 31.202 HHS anualet plans for making $11 baloon, avaliaber States Thas funding is avalace for buspita preparednes. laboratory capacity, epidemiology, and energent medica. response Approximately 20 percent of this total ertner has already beer, provided (or wu be provided witfur the next few weeks for immediate expenditure to al eligros entities I best awarts that will be used to establist core programs and address current needs for bioterronam preparedness. The remaining 81 percent wil of made available to expenditure unce the Secretary has approved the States' work plans for thear awarded fimus. States wil submit plate whice w be reviewed by the HHS staff to ensure thar funding is used wise's for

In order to create a basket of preparedness against bioterrorism, the FY 2003 budget provides funding to State and local organizations to improve Laboratory capacity, enhance epidermological expertise in the identification and control of diseases caused by bioterronsm, provide for better electronic communication and distance learning, and support a newly expanded focus on cooperative trailing between public health agencies and local hospitais.

Funding for the Laboratory Response Network enhances a system of over 80 public health labs specifically developed for identifying pathogens that could be used for bioterrorism. Funding

will also support the Health Alert Network, CDC's electronic communications system that will link local public health departments in covering at least ninety percent of our nations' population. Funding will be used to support epidemiological response and outbreak control, which includes funding for the training of public health and hospital staff. This increased focus on local and state preparedness serves to provide funding where it best serves the interests of the nation.

An important part on the war against terrorism is the need to develop vaccines and maintain a National Pharmaceutical Stockpile. The National Pharmaceutical Stockpile is purchasing enough antibiotics to be able to treat up to 20 million individuals in a year for exposure to anthrax and other agents by the end of 2002. The Department is purchasing sufficient smallpox vaccines for all Americans. The FY 2003 budget proposes $650 million for the National Pharmaceutical Stockpile and costs related to stockpiling of smallpox vaccines, and nextgeneration anthrax vaccines currently under development.

Another important aspect of preparedness is the response capacity of our nation's hospitals. Our FY 2003 budget provides $518 million for hospital preparedness and infrastructure to enhance biological and chemical preparedness plans focused on hospitals. The FY 2003 budget will provide funding to upgrade the capacity of hospitals, outpatient facilities, emergency medical services systems and poison control centers to care for victims of bioterrorism. In addition, CDC will provide support for a series of exercises to train public health and hospital workers to work together to treat and control bioterrorist outbreaks.