1. Fiscal Year 2003 Budget

2. Overview of the HHS Budget Total Outlays = $488.8 Billion

3. Ensuring A Safe and Healthy America Invests in Biomedical Research Strengthens Medicare Supports Healthy Communities Protects the Nation Against Bio-terrorism Improves the Management & Performance of HHS Programs Provides Access to Health Care Builds Upon the Success of Welfare Reform

4. Protects the Nation Against Bio-terrorism Biomedical Research: +$794 million Food Safety & Regulatory Work: +$7 million State & Local Preparedness: +$408 million HOSPITAL Facilities & Security: +$498 million Total of $4.3 Billion; +$1.3 billion over FY 2002 Medical & Public Health Response: +$140 million

5. Invests in Biomedical Research Includes the final installment of the funds needed to fulfill the President’s commitment to double the FY 1998 NIH budget.

6. Provides Access to Health Care Community Health Centers +$114 million to support 90 new & 80 expanded sites Drug Treatment +$127 million to provide treatment services to an additional 52,000 individuals National Health Service Corps +$44 million to support 1,800 providers in under- served areas Patient Safety +$10 million to reduce medication errors & adverse events; support “evidence- based” interventions Medicaid +$350 million to extend Transitional Medical Assistance for one year.

7. Builds Upon the Success of Welfare Reform Re-authorizes Temporary Assistance for Needy Families ($16.7 billion) Includes Supplemental Grants ($319 million) & Contingency Fund ($2 billion) Proposes More Child Support to Families & Stronger Enforcement Tools Supports Family Formation Initiative ($100 million) Continues Commitment to Child Care Funding for States ($4.8 billion) Provides Education Assistance for Older Foster Children ($60 million)

8. Strengthens Medicare MEDICARE Improve Medicare Provide Prescription Drug Benefit Expand Medigap Options Dedicates $190 Billion Over Ten Years for Targeted Improvements & Comprehensive Medicare Modernization Enhance Medicare+ Choice

9. Supports Healthy Communities Healthy Communities Innovation Fund Supports tightly coordinated public/private partnerships between medical, social, educational, business, religious, and civic groups Provides $20 million for new interdisciplinary, community-based approaches to prevention of diabetes, asthma, & obesity

10. Improves Management & Performance MANAGEMENT AGENDA Supports Workforce Planning & Restructuring Improves Budget & Performance IntegrationEnhances Financial AccountabilityExpands Information Technology & E-GovEnsures Competitive Sourcing of Commercial Activities Budgets for the Accrued Costs of Health & Retirement Benefits Reflects HHS’ Commitment to the President’s Management Agenda & the Secretary’s Vision of “One- Department”

11. Other Initiatives FHead Start (+$130 Million): Maintains current enrollment levels, supports competitive salaries for teachers, and strengthens training and technical assistance. FPromoting Safe & Stable Families: (+$130 million): Helps States to increase child abuse prevention, family preservation and adoption services with the paramount goals of promoting child safety, permanence, and well-being. FNew Freedom Initiative ($16 million): Supports community based models of care and support that help remove the barriers to equality that face individuals with disabilities. FStrengthening Families (+$125 million): Supports targeted efforts to engage community and faith-based organizations in helping people and changing lives; includes Compassion Capital Fund, Mentoring Children of Prisoners, Responsible Fatherhood, and Maternity Group Homes.