President Bush unveiled his $3.1 trillion proposal on Monday. The plan calls for major cuts to health spending while leaving a $400 billion deficit. The budget would extend Bush’s tax cuts beyond their expiration date for 2011 at a cost of $635 billion.

President Bush: “In order for this economy to grow, it’s important to make the tax relief permanent, and that’s what this budget reflects. It’s a budget that boosts monies for education and health and housing. It helps deal with the issue of making the tax code more fair for individuals who want to buy health insurance in the individual market.”

The budget proposes spending cuts or freezes for most government agencies. The Homeland Security and Pentagon budgets would be among the few seeing increases, with the military getting a seven percent boost. Including the wars in Iraq and Afghanistan, US military spending would reach at least $690 billion. The White House budget plan estimates the wars will cost $70 billion this year, a figure widely seen as far too low. Bush’s plan would meanwhile cut billions from healthcare.

President Bush: “This budget is one that keeps spending under control. Discretionary spending is held to less than one percent. It elements 151 wasteful or bloated programs, saving the taxpayers $18 billion. It also takes a hard look at entitlement growth over the next five years and provides specific recommendations to save $208 billion over those five years.”

The $208 billion cited by the President would come from deep cuts to Medicare and a freeze on new Medicaid spending. Among the other programs on the President’s chopping block: food assistance for poor children, grants for career and technical education, community development and revitalizing public housing.