Headline: Bush tries to rescue reputation
President George W. Bush, facing an image crisis, admitted Thursday he failed Americans in the response to hurricane Katrina, pitched an anti-poverty plan and promised to pay the bulk of one of the world's largest reconstruction projects
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While Bush directed his Homeland Security Department to conduct an immediate review of emergency plans in every major city in America, he left many wondering why that hadn't already been done after 9-11.

And the president is facing Republican legislators anxious about the daily $2-billion US price tag for the Katrina cleanup, a cost that could eventually surpass the $300 billion US that's already been spent in Afghanistan and Iraq.

Big spending on the costliest natural disaster in U.S. history has raised serious questions about the finances of a country waging war and grappling with a huge deficit.
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Despite three trips to the ravaged coast and declaring Friday a national day of prayer and remembrance, his words have lacked the punch and impact of the moments that became iconic following the terrorist attacks Sept. 11, 2001.

Opinion surveys peg Bush at his lowest-ever approval rating. And they routinely suggest most blacks think the botched response is directly related to the poverty and race of area residents, a view most whites don't share.

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Bush took particular care Thursday to address the racial divide that has split wide open again in the aftermath of Katrina, noting that the poverty exposed to the world "has roots in a history of racial discrimination which cut off generations from the opportunity of America."

"We have a duty to confront this poverty with bold action," he said.
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Democrats are focused on the gains they might make in next year's congressional elections if the catastrophe nudges Americans toward a new level of social consciousness they advocate and away from a decades-long trend toward lower taxes, small government and a fend-for-yourself mentality.

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Recent surveys suggest most Americans now want Bush to focus on domestic priorities, rather than the terrorism fight that has long been his strong suit. Nearly two-thirds said he does not share their priorities for the United States.

(CNN) -- President Bush said Friday his plan for federal projects to rebuild the Gulf Coast following Hurricane Katrina will be expensive, "but I'm confident we can handle it and our other priorities."

The nation will "have to cut unnecessary spending," he said.

He added, "We should not raise taxes."

The president commented on the budget during a joint press conference with Russian President Vladimir Putin.

Congress has already approved $62 billion in aid for the hurricane-damaged region. Analysts estimate reconstruction costs will be at least $200 billion. But two top White House officials, during a briefing with reporters Friday, refused to estimate the total cost of Bush's proposals.

Before Katrina hit, the non-partisan Congressional Budget Office estimated the 2006 budget deficit at $314 billion, down from $331 billion for the current fiscal year. Those annual deficits add to the historic federal deficit.