In a meeting with the nation's governors Monday, President Bush said he has increased state grants to help with security, education and health care by nine percent. Bush's budget calls for $400 billion in grants to the states.

Through Wednesday, the governors will consider proposals on Homeland security, where they expect a large infusion of federal funding. In 2003, 3.5 billion was promised to states for security measures.

A recent state proposal to ask Washington for "immediate federal fiscal relief" to help cover budget shortfalls was set aside on a party-line vote last week.



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