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of the to koszykrz' dollars, and we have launched a regulatory reform protsatsen to partice the paperwork burden on popsicians, hospitais, ** wall other health prov.ders,

As we make sure we are working efficiently, we are also prowong the resources our health care system demands. The total HII peuple et for fiscal year 2003 is $488.8 billion. This is an intream of $29 2 billion, or 6.3 percent over the comparable 2002 blynt.

The therretionary component of the HHS budget totals $64 bil1oon in beert authority, an increase of $2.4 billion or 3.9 percent. The fiscal year 2003 budget further strengthens our ability to deal with the threat of bioterrorism. In total, we are asking the Coneines to give us an additional $4.3 billion, an increase of 45 percent pover the current fiscal year. This funding will support a variety of ortivitise to prevent and respond to the incidence of bioterrorism.

Right now. we are providing $1.1 billion to State governments to help them strengthen their capacity to respond to bioterrorism and other public health emergencies. The money is part of the bioter1011011 appropriation bull, and I want to thank all of you on a biparhean basis for what you did, that Congress passed and the Presidont aigned into law on January 10th. Most of the money has already been sent to the States.

We are working to hook up every major county and State health ayatın in the Nation electronically through the Health Alert networla The Network is developing communications, the Network Hard loy the (DC, to be able to communicate with State and local health departments regarding possible disease outbreaks. We are provudung moun than a half a billion dollars for our hospital preparis11091918 pe veram, which will strengthen the ability of local hospale to prepare for biological and chemical attacks. We are also lowking at the opportunity to develop regional hospitals for surge ****p**%'att444 it'in fact we really have a serious bioterrorism attack.

The NIH is also researching for better anthrax, plague, botulism and henorthugie fiver vaccines. We have purchased 154 additional talles dues vf smallpox vaccine that we should have all in store by the end it this vear, so that we will have one vaccine for every 124, Women and child in unerica.

When it comes tu brolerrorism, we are growing stronger in our proper diens vach and every day. We are also advancing important bomoured research and preventive health extures the X will get

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And Mr. Chairman, we are also helping to prepare low-income Americans for the future. That is why welfare reform remains so important. The good news is that since 1996, welfare reform has exceeded expectations, resulting in millions moving from dependence on AFDC to the independence of work. Nearly 7 million fewer individuals are on welfare today than in 1996, and 2.8 million fewer children are in poverty, in large part because welfare has been transforming.

I also would like to quickly point out that the article in the Washington Post today is incorrect. There is nothing in this proposal on TANF to abrogate the minimum wage laws or the Fair Labor Standards. I want to make that crystal clear to everybody.

The President's budget boldly takes the next step, which requires us to work closely with States to help those families that have left welfare to climb the career ladder and become more secure in the work force. The foundation of the welfare reform's success remains work, which is the only way to climb from poverty to independence.

The President's budget allocates $16.5 billion for block grant funding, provides supplemental grants to address historical disparities in welfare spending among States, and strengthens work participation requirements. The budget provides another $350 million in Medicaid benefits for those in the transition from welfare to work.

We are also calling for a continued commitment to child care, including $2.7 billion for entitlements, as well as $2.1 billion for discretionary funding. We are going to require States to engage everyone in the TANF program in work or work preparation activities. States will have to develop and implement self sufficiency plans for every family and regularly review the progress each family is making.

We are giving States the flexibility also they need to mix effective education and job training programs with work, as well as money to strengthen families and reduce illegitimacy. Our budget also includes resources for programs targeted at protecting our most vulnerable and at-risk children, including significant funding for foster care and adoption assistance.

Modernizing Medicare is another key component of our across the board effort to broaden and strengthen our country's health care system. Since becoming Secretary, I have begun to modernize the very structures of the centers for Medicare and Medicaid seryices. These reforms are essential to the continued success of Medicare, which is why the 2003 budget is a significant step forward. It dedicates $190 billion over 10 years for immediate targeted improvements and comprehensive Medicare modernization, including a subsidized prescription drug benefit, better insurance protection and better private options for all beneficiaries.

While we will not agree on the overall cost, I am confident that as we come together in good faith, we can reach a fiscally responsible and effective conclusion about what the funding should be. This Administration recognizes the need to act now to help seniors obtain prescription drug coverage. Our budget provides $8 billion through the year 2006 for a new program for States to be able to

ents, whauist ilcoine in 151 peront of tre federa poverty level or itse.

fus we react out to thouse sil revine uf welfare. and work to strengthen vitailare. We callino: ignore zne rougnis 41 milion Americalis WGG Lack healt wurance. Since January 25, we have approvec Satt par amenamenie. jadies and gentleman. On Vica.ca.dala SEP Wavers that now have expanded opportumitits for health coverage und Americans and improve existing benefle U 4.5 W0L OVQWELS.

The 23 buaget stere $1.5 or to support the President's plan to Il pact 1.21) communities who sew or expanded bearth centers by 276. Tos is a 24 m 120 nrease orar Esca rear 2002, and ward support 170 new and expanded deatens to provide services to 1 m...I rew patients. The President's becget pendes $09 billion in new death credits to hep Arencan arases buy health insurance in.mediate y. The program will support purchase of health insurance as well as affordat, ie expansions in State and Federal programs, and will provide States the flexibility to set up State-sponsored purchasing pools to harness the economies of group purchasing

Mr. Chairman, this comprehensive, aggressive budget addresses the most pressing public health challenges facing our Nation, from bioterrorism preparedness to coverage for the uninsured. What binds this proposal together is a commitment and a passion to ensure a safe and healthy America, and to improve the lives of the American people, while fostering the discipline the State of our economy demands. And I know this is a commitment that all of us share.

Thank you again for letting me come before you today. I look forward to your questions and the opportunity to work with you on improving the quality of health and human services in America.

[The justification follows:)

STATEMENT

BEFORE THE

HOUSE L/HHS APPROPRIATIONS SUBCOMMITTEE

TOMMY G. THOMPSON

SECRETARY

DEPARTMENT OF HEALTH AND HUMAN SERVICES

MARCH 6, 2002

(RELEASE UPON DELIVERY)

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And it**** *, *** ***14 uns u ins (ne the past year, I have come to really appreciate you ***** & samlet sa te **-:es 24 health weds of the American pesole. Like you, I bebeve is le tavuus 11116 pg atas pernde sracudira sur commitment to the war against bioterrorism I

Wonde lauad to furths, tmg trur relationshup 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 11" alla ks we have dedicated much of our efforts to ensuring that the nation is safe.

Hitis 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

tesponse 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

watoty of our nation

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