If approved by Congress as expected, it would be the largest increase in military spending since former president Ronald Reagan's Cold War-era buildup 20 years ago.
Daniels said the Pentagon may need even more money because the US$10 billion contingency "might not last more than a few months."
Bush also proposes more than doubling spending on homeland security to US$37.7 billion in 2003, including US$5.9 billion to combat bioterrorism and US$10.6 billion to help stop would-be terrorists at the border.
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