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Good afternoon, I'm Naamua Delaney at the CNN center in Atlanta. Here is a look at what's happening NOW IN THE NEWS.

President Bush is sending Congress the biggest budget in US history, a 3.1-trillion-dollar plan. The proposal would support increases in military spending while squeezing most government programs outside of national security. The budget projects deficits¹ of more than 400 billion dollars for each of the next two years, but predicts a balance budget by 2012. Democrats² say the full cost is based on faulty math that included only 70 billion dollars for the wars in Iraq and Afghanistan in 2009.

A suicide attack in Israel today is the first one there in a year. Police say the bomber³ killed one person and wounded 11 others at a shopping mall in southern Israel. Israeli police shot and killed a second potential bomber. A militant⁴ spokesman says the two bombers⁵ entered Israel through Egypt after fleeing across the breached⁶ Rafah border crossing which is now being sealed. Hours later Israel carried out an air strike north of Gaza City. Palestinian medical sources say a senior militant was killed.

The US Geological Survey says a powerful 6.3-magnitude earthquake has hit Chile. It struck the northern part of the country near its borders with Bolivia and Peru. In November a 7.7-magnitude earthquake hit the same region. The next day three large aftershocks destroyed thousands of homes.

There's been a shooting at a high school in Memphis, police say one student was shot and that student's injuries are described as not life threatening. The school is still on lockdown but one male student is in custody⁷. There is no word yet on why it happened.

New York Yankee's pitcher⁸ Andy Pettitte is talking to House Committee lawyers again today to explain what he knows about steroids in baseball. It's part of his preparation for a public hearing set for next week. That's when he may talk about findings in the Michell report on drug use in baseball. Two days after that report was released, Pettitte admitted he took human growth-hormone for two days in 2002 to deal with an elbow injury.

Well, those are the headlines this hour. Stay with CNN for more on these stories and the other news of the day.