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Bush Proposes 36% Funds Hike for Head Start

President Bush, in a surprise announcement, disclosed Friday that he will seek a $500-million increase in government funding next year for Head Start, a 25-year-old program intended to help disadvantaged youngsters prepare for elementary school.

Bush said the proposed 36% jump in federal spending is intended to expand the program–one of the few remaining elements of Lyndon B. Johnson’s War on Poverty–so it can reach 70% of the disadvantaged 4-year-olds in the nation.

Elsewhere in the draft $1.23-trillion federal budget for the fiscal year that begins next Oct. 1, Bush is expected to propose $37 billion in spending cuts and revenue increases to meet a congressionally mandated deficit-reduction target of $64 billion next year.

The budget–Bush’s first full-scale statement of his priorities for the federal government–will include a renewed call for a lower capital gains tax rate, tax credits for adoptions and for child care, and a proposed “family savings account” that would allow people to accumulate tax-free earnings on up to $5,000 put away each year.

Although the package contains no general tax hikes, it is expected to include as much as $12 billion in various revenue increases that would take money out of people’s pockets, including $5 billion in proposed user fees.

The plan calls for further cuts in Pentagon spending after adjusting for inflation, but Congress is expected to demand even deeper savings. Bush’s spending blueprint will call for modest savings of about $3.8 billion from holding defense outlays to $292 billion next year, compared to the $286 billion total for this fiscal year.

Deputy Defense Secretary Donald J. Atwood, who briefed congressional staff members Friday, called the Pentagon’s budget request “realistic” and said its efforts to scale back its budget in the next five years deserve support.

In tentative spending plans for the next five years, the Pentagon has proposed to reduce its budget by 2% annually after accounting for inflation, which would allow only a gradual rise from $292 billion next year to $311.8 billion in fiscal 1995.

Congressional sources said that Defense Secretary Dick Cheney had slated a long list of relatively small weapons and ordnance programs for termination. None of the Pentagon’s most costly programs, including the B-2 Stealth bomber–for which $5.5 billion will be sought in 1991–were killed or scaled back significantly.

Cheney is certain to raise hackles on Capitol Hill with decisions not to seek additional funds for production or development of the Marine Corps’ V-22 Osprey tilt-rotor aircraft and the Navy F-14 fighter jet. The Pentagon last year proposed to terminate both programs, prompting angry lawmakers to restore some funds to keep the programs alive.

The budget also contains about $5 billion in proposed Medicare savings, along with another $2.5 billion from yet another Administration attempt to require state and local workers to pay for Medicare coverage.

Altogether, about 18 or 19 programs would be terminated.

On the other side of the ledger, Bush is expected to call for increased spending on the environment, particularly a stepped-up program to combat global warming, and a boost in spending on space, drug enforcement and treatment, and AIDS research and prevention.

The overall education budget would rise by $500 million, but not enough to keep up with inflation. As a result, some college students would lose their eligibility for Pell Grants, and others would be required to accept smaller stipends.

The 1,592-page budget document was in its final press run on Friday, said Donna Alexander, a spokeswoman for the Government Printing Office. Some 24,000 of the blue-jacketed documents are being printed, and they will go on sale Monday at government book shops for $38 each.

Bush, his aides, and other government officials have carefully disclosed most of the key elements on his agenda this year. He will be free in the State of the Union address Wednesday evening to focus on the overall direction he would like to see the country take this year, rather than having to present a “laundry list” of problems and programs.

In disclosing the Head Start funding proposal to an audience of adopted children and parents taking part in a White House program on adoption, Bush said he would seek “the largest increase ever–half a billion additional dollars–for Head Start.”

“This new funding will increase the Head Start enrollment to 667,000 children and bring us to the point where we can reach 70% of this nation’s disadvantaged 4-year-olds through Head Start,” he said.

Bush said “every American child with special needs, whether physical, emotional, or material, deserves the opportunity for a full and happy life.”

The increase is approximately 10 times as big as the additional amount sought for the program by the Department of Health and Human Services, White House Press Secretary Marlin Fitzwater said.

The President’s announcement surprised advocates of assistance for children and Democratic politicians, with one Democratic political adviser remarking: “That’s smart politics.”

Bush, who said frequently during the 1988 political campaign that he wanted to become the “education” President, had come under increasing pressure to move toward that goal by increasing federal funding for a variety of education programs.

Such pressure emerged at the meeting Bush led at the University of Virginia last September, where he conferred with the nation’s governors on education needs across the country. Fitzwater said the Head Start proposal stemmed directly from that conference.

The Head Start program grew steadily during the Ronald Reagan Administration from about $800 million in 1981 to about $1.2 billion when he left office. In 1990, the Head Start program is receiving $1.386 billion. It provides early educational skills, health care and social counseling for preschool children from families living at or below the poverty level. Staff writer Melissa Healy contributed to this story.

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South Korea to send delegation to U.S. after Trump’s tariff hike

SEOUL, Jan. 27 (UPI) — South Korea will dispatch a delegation of senior trade and industry officials to Washington after U.S. President Donald Trump announced a sharp increase in tariffs on Korean goods, the Ministry of Trade, Industry and Resources said Tuesday.

Trade Minister Yeo Han-koo and Industry Minister Kim Jung-kwan will travel to the United States to meet their counterparts for talks on the tariff hike, the ministry said in a press release.

The decision was made at an emergency interagency meeting chaired by presidential chief of staff for policy Kim Yong-beom, convened hours after Trump’s surprise announcement on social media.

Trump said he was raising his so-called “reciprocal” tariffs on South Korea from 15% to 25%, accusing Seoul’s National Assembly of failing to act quickly enough to implement a bilateral trade deal finalized late last year.

“South Korea’s Legislature is not living up to its Deal with the United States,” Trump wrote earlier Tuesday on his Truth Social platform.

He said the higher tariffs would apply to automobiles, lumber, pharmaceuticals and other goods covered by the agreement.

The legislation to implement the deal was submitted to the National Assembly by the ruling Democratic Party in November but has yet to be passed.

Kim, who is currently in Canada, will travel to Washington as soon as his schedule allows to meet with U.S. Commerce Secretary Howard Lutnick, according to the ministry. Yeo will depart from Seoul to hold talks with U.S. Trade Representative Jamieson Greer.

Trump and South Korean President Lee Jae Myung finalized trade negotiations on the sidelines of the Asia-Pacific Economic Cooperation forum in Gyeongju on Oct. 29.

The two sides released a fact sheet in November detailing the terms of the deal, under which Trump’s tariffs on South Korean goods, including automobiles, would be reduced from 25% to 15%.

In exchange for the lower tariffs, South Korea pledged to invest $350 billion in the United States, including $150 billion in the U.S. shipbuilding sector and $200 billion for strategic industries under a memorandum of understanding to be signed by the two governments.

The fact sheet also formalized Washington’s approval of Seoul’s long-sought plan to build nuclear-powered submarines, a capability South Korean officials have framed as part of broader industrial and security cooperation with the United States.

The tariff move comes amid a dispute involving a South Korean regulatory probe into Coupang, a U.S.-listed e-commerce company, following a large-scale data breach.

On Friday, South Korean Prime Minister Kim Min-seok said he addressed the matter directly in talks with U.S. Vice President JD Vance, stressing that American firms had not been unfairly targeted.

“I made it clear that there has been no discriminatory treatment against U.S. companies,” Kim told Korean correspondents in Washington, D.C.

Following Tuesday’s emergency meeting, South Korea’s presidential office said it would react “calmly” to the announced tariff increase.

“Since the tariff increase will only take effect after administrative procedures such as publication in the Federal Register, the Korean government plans to calmly respond while conveying its commitment to implementing the tariff agreement to the U.S. side,” presidential spokeswoman Kang Yu-jung said in a written briefing.

South Korean stocks initially fell on the tariff news, with the benchmark KOSPI dropping by 0.84% in the first 15 minutes of trading before reversing early losses to gain 2.73% and close at an all-time high of 5,084.85.

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Ryanair to hike plane fares this summer

RYANAIR flights are about to get more expensive – after the airline reported a drop in profits.

The budget airline was fined £222million by Italian regulators for blocking travel agencies from accessing their flights.

A Ryanair passenger jet on the tarmac at Dublin Airport.
Ryanair fares are set to go up this yearCredit: AFP

This has since resulted in a drop of profits, with pre-tax reports of £21.2million in the three months to December – a drop of 83 per cent in the previous year.

In response fares are likely to now go up by as much as nine per cent, more than their predicted seven per cent.

With the average fare costing around £50, this means it could go up to £54.50.

However, Ryanair has said they will be appealing the Italian case, and were “confident” it would be overturned.

PLANE MAD

Ryanair launches ‘big idiot’ seat sale in attack on Elon Musk with £14.59 flights


GROUNDED

European islands losing ALL their Ryanair flights – affecting 400,000 passengers

The airline has scrapped millions of seats across Europe in recent months, citing high airport costs and taxes.

Across Spain, Tenerife North, Santiago and Vigo have seen all UK flights cancelled.

This leaves the city of Vigo with no direct UK flights.

For France, Bergerac, Brive, and Strasbourg all had their flights cut, although Bergerac flights are set to return this summer.

And all flights to and from the Azores have been axed, citing high ATC fares in Portugal.

Instead, the budget airline is launching more flights at “cheaper” destinations such as Albania and Morocco.

More than 100 new routes are being launched across the UK this year.

It comes after a public spat between Ryanair boss Michael O’Leary and Elon Musk earlier this month.

The fight broke out between the two millionaires came after O’Leary said he would not be installing Musk’s Starlink Wi-Fi on Ryanair planes.

This was due the cost it would result in, with as much as $250million per year due to a “fuel drag” caused by the antennas”.

In response, Ryanair launched a “Big Idiot” seat sale, with cheap fares for £15.

Ryanair has since said they are “not ruling out” installing Starlink on planes, depending on the cost factors.

Multiple grounded Ryanair planes lined up on the tarmac at Stansted Airport.
The airline is also scrapping thousands of flights across Europe due to high airport taxesCredit: Alamy

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