of the taxpayers' dollars, and we have launched a regulatory reform mutuature to reduce the paperwork burden on physicians, hospitais. 44 well 44 other health providers.

As we make sure we are working efficiently, we are also providing the resources our health care system demands. The total HHS request for fiscal year 2003 is $488.8 billion. This is an inerhase of $29 2 billion, or 6.3 percent over the comparable 2002 budget

The discretionary component of the HHS budget totals $64 billion in budget 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 Congress to give us an additional $4.3 billion, an increase of 45 percent over the current fiscal year. This funding will support a variety of activities 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 bioterforism appropriation bill, and I want to thank all of you on a bipartisan basis for what you did, that Congress passed and the President signed 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 system in the Nation electronically through the Health Alert network The Network is developing communications, the Network used by the CDC, to be able to communicate with State and local health departments regarding possible disease outbreaks. We are providing more than a half a billion dollars for our hospital preparedness program, which will strengthen the ability of local hospitala to prepare for biological and chemical attacks. We are also looking at the opportunity to develop regional hospitals for surge capacities if in fact we really have a serious bioterrorism attack.

The NIH is also researching for better anthrax, plague, botulism and hemorrhagic fever vaccines. We have purchased 154 additional million doses of smallpox vaccine that we should have all in store by the end of this year, so that we will have one vaccine for every man, woman and chi'd in America.

When it comes to bioterrorism, we are growing stronger in our preparedness each and every day We are also advancing important biomedical research and preventive health efforts. The NIH will get agunicant funding for new research into new vaccines and proboring the security of its facilities,

The budget provides $0.3 billion for research on cancer throughout NM, and a weal of $2.3 bilhon for HM JCDS related researen, the CDC will diso receive $940 million or is Stair and ovai progruna y úngrove local laboradores, tam physicians, and expand GOOPOĽALVŲ (Pruning betweeur pubie bedito agencies and dear hus

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 services. 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, whose income is 150 percent of the Federal poverty level or less.

As we reach out to those stil reiving or welfare. and work to strengthen Medicare, we cannot ignore the rougny 40 million Americans who lack health insurance. Since January 2002, we have approved State piar amendments, ladies and gentleman, on Medicaid and SCHIP waivers that now have expanded opportunities for health coverage to 1.8 million Americans and improve existing benefits to 4.5 million individuais.

The 2003 budget seeks $1.5 billion to support the President's plan to impact 1.209 communities with new or expanded health centers by 2006. This is a $114 million increase over Escal year 2002, and will support 170 new and expanded centers to provide services to 1 million new patients. The President's budget includes $89 billion in new health credits to help American familles buy health insurance immediately. The program will support purchase of health insurance as well as affordable 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)

Before 1 dvar oss the F✅ 2563 budget, I would like to thank the committee for its hard work and dadu ation to the pervej urns at HHS. Over the past year, I have come to really appreciate your expport 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 11" 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