WASHINGTON – U.S. Sen. Olympia J. Snowe of Maine pressed Tuesday for an immediate economic stimulus package and more federal spending for domestic programs that benefit Maine while renewing her push for a “trigger mechanism” that would control the level of government spending and taxes.

Snowe spoke at a Senate Budget Committee hearing at which Office of Management and Budget Director Mitchell E. Daniels outlined President Bush’s “two-front budget” that focuses on homeland security and the war on terrorism, a focus Snowe said she endorsed.

Snowe said it’s “essential to pass an economic stimulus package, especially as so many economists and the [Bush] administration have projected that we could double the rate of growth and produce thousands more jobs.”

Addressing Daniels, Snowe advocated an immediate economic stimulus package to revive a sluggish economy. Snowe is putting forth a proposal that would provide “in excess of $17 billion through a displaced worker credit [$13 billion] to cover health costs and national emergency grants to states [$4 billion],” Dave Lackey, Snowe’s press secretary, said in a press release.

Snowe also discussed with Daniels a budget “trigger mechanism” that would suspend the tax cuts Congress approved last year if the government slides into deficit spending. The trigger idea is supported by Federal Reserve Chairman Alan Greenspan and was a major issue last year. Snowe, in collaboration with Sen. Evan Bayh, D-Ind., intends to press for inclusion of the trigger in next year’s budget.

“Last year, we based our budget on 10-year projections and then saw $4 trillion evaporate in just one year,” Snowe said. “The circumstance could not be anticipated. We can take a proactive, responsible stance that would control spending as well as tax cuts. I think it’s an approach we should revisit.”

Snowe said she agrees with the president’s budget proposal for the most part, but she disagrees with the lack of federal funds for programs affecting Maine, such as Medicare, education and transportation.

Bush’s budget allocates $190 billion to Medicare, but Snowe said she wants to raise that number to $300 billion, especially to cover prescription drug programs.

“I intend to continue my efforts … to set aside $300 billion or more for a new [drug] benefit, and will do all within my authority to ensure this is the year Congress passes a new benefit,” Snowe said. “Seniors can’t defer their prescription drug bills – and Congress should not delay any longer on passing a new benefit.”

Snowe also said she was “disappointed” that the $11.4 billion Bush’s budget proposes for special education “falls short of the federal commitment to fund 40 percent of special education costs. States such as Maine are staggering under the additional burden of special education.”

Snow also expressed concern about the Treasury Department’s projection of a substantial decline in national highway trust fund revenues that she said would hurt Maine’s highway plans. Current estimates of the impact on Maine project a loss of about $37 million for highway projects and the loss of about 1,670 jobs.

Snow said she wanted to look at ways the highway fund, financed by taxes on highway users, could be augmented out of the general budget.