FACTBOX: Congress under attack for "earmark" money

(Reuters) - "Earmark" has become a dirty word in Washington, but for decades these spending measures have been the bread-and-butter of U.S. lawmaking for Democrats and Republicans alike.

In his State of the Union speech on Monday, President George W. Bush is calling for a reduction in the measures targeted to lawmakers' home states or congressional districts that find their way into annual appropriations bills passed by Congress.

Following is a description of earmarks, along with some examples:

* To supporters, an earmark is a way for members of Congress to get funding for a specific hometown project, such as a new bridge, a university research grant or weapons system production that will bring jobs to a congressional district.

* To critics, an earmark is nothing more than government waste -- sometimes corrupt, sometimes frivolous -- that gets inserted into annual appropriations bills by members of the House of Representatives or Senate, usually without congressional hearings or other oversight.

* For all of the controversy, earmarks represent a small portion of U.S. government spending, less than 1 percent of the federal budget.

* Two years ago, in fiscal 2006, earmarks were estimated to have grown to more than $16 billion, not counting some major projects run by the Army Corp of Engineers and Pentagon. In fiscal 2007, the new Democratic-run Congress put a moratorium on earmarks pending a review of procedures. This year, they total just over $9 billion, according to the House Appropriations Committee. Defense spending bills attract more earmarks than any of the other 11 individual spending bills.

* Democrats in Congress accuse the Bush administration of using its own form of earmarks with no-bid contracts and in other day-to-day decisions by agencies on how project money is spent.

* Earmarks gained attention after it was disclosed that former Rep. Randy "Duke" Cunningham, a California Republican, used his position on the House Appropriations Committee to funnel millions of dollars to a defense contractor by using them. Cunningham pleaded guilty to bribery in 2005.

* Some notable recent earmarks: Funds for the "bridge to nowhere" in Alaska to connect Ketchikan to a small island airport that already had ferry service; money to help build a Woodstock Museum in New York to memorialize the 1969 rock concert; funding for a teapot museum in Sparta, North Carolina. An earmark also established the Iraq Study Group to examine ways out of the war.

* Under congressional reforms, sponsors of earmarks now must be identified, along with other details on who would get the money.

(Reporting by Richard Cowan, editing by Vicki Allen)