Some agencies would win big under President Bush's fiscal 2008 budget proposal, while others would be slashed.

WINNERS

DEFENSE DEPARTMENT: $624.6 billion, a 4.1 percent increase over 2007. The Army would get $130.1 billion, a 20.4 percent increase. An additional $37.6 billion would go to fix or replace equipment destroyed in battle.

VETERANS AFFAIRS: $84.4 billion, a 13.3 percent increase over 2007. The VA will treat nearly 263,000 Iraq and Afghanistan war veterans; the budget seeks $36.6 billion for medical care, including $3 billion for mental health.

STATE DEPARTMENT: $37.4 billion, a 12.9 percent increase over 2007. Seeks to triple funding for the Millennium Challenge Corp., to $3 billion. Millennium provides aid to 11 fledgling democracies.

INTERIOR DEPARTMENT: $10.1 billion, a 4.1 percent increase over 2007. Seeks $1.9 billion for national parks, a 13 percent increase, including 40 percent more for daily park operations than when Bush took office.

LABOR DEPARTMENT: $50.4 billion, a 7.9 percent increase over 2007.

LOSERS:

AMTRAK: Seeks $800 million, $500 million less than fiscal 2007.

ENVIRONMENTAL PROTECTION AGENCY: $7.1 billion, a 4.9 percent cut.

LOW INCOME HOME ENERGY ASSISTANCE: Seeks $1.8 billion, down from $3.2 billion, a 56 percent cut.

CORPORATION FOR PUBLIC BROADCASTING: Seeks $350 million, down from $460 million in fiscal 2007.

EDUCATION DEPARTMENT: Seeks $62.6 billion, a 5 percent cut.

LABOR DEPARTMENT'S BUREAU OF INTERNATIONAL LABOR AFFAIRS: Would cut from $73 million to $14 million, nearly 81 percent.

OFFICE OF DISABILITY EMPLOYMENT POLICY: Cut from $28 million to $19 million, or 32 percent.

CENTERS FOR DISEASE CONTROL AND PREVENTION: Cut by $550 million.

McCLATCHY NEWSPAPERS

Several big proposals in President Bush's fiscal 2008 budget are lightning rods for controversy, among them:

EXTENDING HIS FIRST-TERM TAX CUTS: This would cost the Treasury about $1.6 trillion over 10 years. Newly empowered Democrats in Congress have made it clear that they intend to let tax reductions for the very wealthy expire in 2010. The question is where they'll draw the line on income: $500,000? $250,000? This conflict will color the politics of budget-making until 2010, at least.

PAYING FOR WAR: Bush's request would drive the total cost of the wars in Afghanistan and Iraq to $661.9 billion through fiscal 2008. Democrats say the president asks too much. They promise rigorous oversight and may put strings on what money they do grant in a bid to end the Iraq war.

HEALTH-CARE FUNDS: Bush proposes to trim the growth rate of spending on Medicare to save $66 billion over five years and $25 billion from Medicaid. Democrats defend both programs and talk of "investing" more in health care.

CHILDREN'S HEALTH INSURANCE PROGRAM: The president proposes to increase spending by $1 billion a year for five years. Democrats say that's not nearly enough. This program is an early battleground in coming partisan warfare over overhauling national health insurance.

SQUEEZING DOMESTIC PROGRAMS. Bush proposes to eliminate or slash spending on 141 federal programs, mostly domestic, to save $12 billion over five years. Congress rejected virtually all these cuts the past two years, and Congress now is run by Democrats, who are even less likely to reduce them.

BALANCING THE BUDGET BY 2012. Both the president and the Democratic-led Congress set this goal, but offer very different means. Bush wants low taxes, high spending on the military and belt-tightening everywhere else. Democrats want to end some of his high-end tax cuts, give the military smaller increases and direct more spending into health care, education and other domestic needs. Reaching a balanced budget by 2012 would require large compromises on taxes and spending, unusual spending discipline from both sides, a healthy economy and luck.

McCLATCHY NEWSPAPERS

President Bush's proposed fiscal 2008 budget's main points:

* $2.9 trillion total, a 4.2 percent increase over this year.

* $93.4 billion more for war costs in Iraq and Afghanistan in fiscal 2007; $141.7 billion for war costs in fiscal 2008. To date Congress has enacted $426.8 billion for war costs. This request would drive the total to $661.9 billion through fiscal 2008. For fiscal 2009, $50 billion is marked as a placeholder .

* $624.6 billion for defense.

* $36.6 billion for medical care for U.S. veterans, up 83 percent since 2001. Includes $3 billion for improved mental health services.

* Making his first-term tax reductions permanent, costing the Treasury $1.6 trillion over 10 years.

* Cutting $66 billion from projected Medicare costs over five years by slowing the growth of payments to health-care providers and charging wealthy beneficiaries higher premiums. Medicare spending still would grow at a 6.7 percent annual rate rather than a now-projected 7.4 percent annual rate.

* Cut projected Medicaid spending by $25 billion over five years.

* Eliminate or sharply reduce funding for 141 other programs to save $12 billion over five years.

* Deficits of $239 billion in fiscal 2008, down from $244 billion this year and $248 billion in 2006.

* Balancing the budget by fiscal 2012.

McCLATCHY NEWSPAPERS