Feb. 6 (Bloomberg) -- President George W. Bush's request for record U.S. military spending and cuts in the growth of entitlement programs met stiff criticism from Democrats in Congress, who vowed to reorganize his spending priorities.

Democratic lawmakers, who hold majorities in the House and Senate, denounced the president's $2.9 trillion budget, saying it emphasizes the Pentagon at the expense of health care and research on alternative and renewable fuels.

Senate Budget Committee Chairman Kent Conrad said Bush's budget was ``filled with debt and deception.'' House Speaker Nancy Pelosi said it would ``mortgage our children's future to the president's misguided policies in Iraq.''

Under Bush's plan, core defense spending would rise to a record $481 billion in the fiscal year starting Oct. 1, an increase of 12 percent over what Congress authorized for the current year. In addition, the president is seeking an extra $100 billion this year and $145 billion next year for the conflicts in Iraq and Afghanistan and the war against terrorism.

At the same time, Bush wants to trim the growth in Medicare and Medicaid, the health care assistance programs for the elderly and poor, by $78 billion over five years and cut a program that provides health insurance for children in low-income families.

Ike Skelton, the Missouri Democrat who is chairman of the House Armed Services panel, called the military funding request ``staggering'' and vowed it would get close scrutiny.

`Due Diligence'

``We cannot provide an adequate national defense on the cheap, but neither can we afford to simply ratify the president's request without performing the due diligence and oversight our Constitution requires,'' Skelton said.

Interest groups and lobbyists for industries that will be pinched by the budget also were lining up in opposition. Chip Kahn, chairman of the Federation of American Hospitals, said Bush's latest budget is ``the wrong budget at the wrong time and would harm those seniors who depend upon America's hospitals.''

Even some Republicans said Congress won't easily accept Bush's proposal. ``The final document may look very different,'' said Senator Mike Enzi of Wyoming, the ranking Republican on the Senate Health, Education, Labor and Pensions Committee.

To address the critics, Bush is dispatching his economic team to the Capitol. White House Budget Director Rob Portman, a former congressman from Ohio, will testify before the House Budget Committee at 10 a.m. Washington time. Treasury Secretary Henry Paulson is scheduled to appear before the Senate Finance Committee at 2:45 p.m.

Balancing Priorities

Portman said the budget meets the country's need to strengthen national security and at the same time starts to address the financial crisis looming for entitlements.

``This will be an important test to see whether we can move beyond talking about sitting down and move beyond talking about the need to discuss reform of these important programs,'' Portman said yesterday at the White House.

Senator Judd Gregg, the senior Republican on the Senate Budget Committee, said the administration's plan to hold down the growth of Medicare and Medicaid has merits.

``We cannot tax our way out of this problem, nor will economic growth alone alleviate the pressure these entitlement programs will place on our children and grandchildren's resources,'' Gregg said.

Energy

Also dividing along partisan lines was reaction to Bush's energy plans. The president made cutting U.S. dependence on oil a key part of his last two State of the Union addresses and he has been touting research on renewable fuels as a way to cut both pollution and oil use.

Still, the increase in nuclear power programs, for example, was $308 million, compared with a $188 million boost for wind and solar energy research. The $9 billion in loan guarantees for low- emission energy supplies includes $4 billion for large power plants, including nuclear and coal-fired power facilities. Projects that promote biofuels would get $4 billion.

Senator Jeff Bingaman, a New Mexico Democrat and chairman of the Energy and Natural Resources Committee, lauded some energy measures. ``Others appear to reflect the wrong priorities if we are to build an effective energy future,'' he added.

Like Bush, Democrats vow to balance the budget by 2012. Budget Committee Chairman Conrad, of North Dakota, declined to say how the party intended to reach its goal, saying they are still hashing out their spending plan.

``We're not here to discuss our budget,'' he said at a news conference at the Capitol.

Election Debate

The budget fight draws Bush and lawmakers into debates that will play prominently in next year's presidential campaign: the length of the U.S.'s wars Iraq and Afghanistan; how best to cut the unsustainable growth of Medicare, Medicaid and Social Security; and how the country diversifies its energy use.

Michael Franc, vice president of government relations with the Heritage Foundation in Washington, said the battle is forming along partisan lines the same way it did in the 1980s when Republican Ronald Reagan was in the White House.

``The Democrats will talk about more spending on domestic issues, less spending on national security issues and higher taxes to pay for the domestic spending increases,'' Franc said. That strategy may allow Republicans ``to reestablish the brand that they use to have as the party of less government, lower taxes and strong national defense,'' Franc said.

To contact the reporter on this story: Brendan Murray in Washington at brmurray@bloomberg.net

Last Updated: February 6, 2007 00:03 EST