Bush Seeks to Recast Federal Ties to the Poor; States Would Gain Control Over Services; Funds for Some Programs Would Be Cut
President Bush has embarked on a far-reaching campaign to transform the federal government's relationship with the nation's poor, seeking to tip control over social services to the states, reduce the funding of some programs, and require more proof that low- income people are eligible for public help.</br></br>The $2.23 trillion budget that Bush proposed to Congress last week would loosen federal standards and hand states vast new authority, if they want it, over housing subsidies, unemployment benefits, health insurance and a preschool program for children from disadvantaged families, which is known as Head Start. It would also make outright cuts in some poverty programs, such as a reduction by a fourth in the amount the government devoted last year to "community services" grants for dispossessed neighborhoods.</br></br>At the same time, the president is seeking nearly $1.5 trillion in tax cuts that would largely benefit the wealthy while potentially squeezing social spending for years to come. White House officials contend that such cuts would ultimately help the poor more than direct government aid because they are supposed to spur faster economic growth, which would raise wages and pull more people into the workforce. In effect, they say, pro-investment tax policy is Bush's boldest anti-poverty program.</br></br>"Small changes in long-term growth have very large effects on our standards of living," said R. Glenn Hubbard, chairman of the White House's Council of Economic Advisers. "Once you realize that, everything else is secondary."</br></br>Affecting many federal agencies, the changes Bush wants to make in anti-poverty efforts reveal a bold aspect of his vision of government that he seldom discusses publicly. The proposals were not among the positions he staked out during the 2000 presidential campaign.