President Bush will seek an additional $87 billion to spend over the next year trying to stabilize Iraq and Afghanistan, and warned that more time and sacrifice would be required in the war against terrorism.
The request, outlined in a nationally televised address Sunday night, comes about two weeks after the Congressional Budget Office estimated this year's
federal deficit at about $400 billion and warned of trillion-dollar gaps over the next 10 years if spending weren't cut.
"We will do what is necessary, we will spend what is necessary, to achieve this essential victory in the war on terror, to promote freedom, and to make our own nation more secure," Bush said. "We are fighting that enemy in Iraq and Afghanistan today, so that we do not meet him again on our own streets and in our own cities."
Of the $87 billion, about $66 billion would be earmarked for military and intelligence activity in Iraq and Afghanistan; the rest would be for rebuilding the countries. Bush said he would send Secretary of State Colin Powell to the U.N. Security Council to seek international assistance, both financial and military, for the U.S. initiatives.
Government bonds were lower following the address, with the 10-year Treasury down 10/32 to yield 4.39% and the 30-year off 21/32 to yield 5.23%.
About 140,000 U.S. troops are currently in Iraq along with about 24,000 foreign soldiers. The government is currently paying for the occupation under a $79 billion authorization that expires Sept. 30.