Mr. Bush, in a year-end news conference, said that a $555 billion measure passed by Congress before breaking for the holidays contains some 980 in so-called "earmarks," or projects usually benefiting only one state or congressional district.
"So I am instructing Budget Director Jim Nussle to review options for dealing with the wasteful spending in the omnibus bill," Mr. Bush said.
However, without holding line-item-veto powers, Mr. Bush's ability to block spending on specific projects appears limited.
The president did praise Congress for sending him "a spending bill to fund the day to day operations of the federal government. They passed this bill without raising taxes." But he complained that the measure was done so late in the year that it could slow the processing of tax returns to millions of Americans.
He said his administration would "work hard to minimize" such a delay.
Mr. Bush did not get specific when asked about proposals to stimulate the economy but said "we'll consider all options."
After the wide ranging news conference, CBS News chief Washington correspondent Bob Schieffer noted that Mr. Bush will have trouble getting much done ahead of the 2008 elections and that his main goal will be on the economy.
"What the president has to do is keep the economy from sliding into a recession," he said.
The Commerce Department reported Thursday that the economy sprinted ahead at its fastest pace in four years during the summer, although it is expected to limp through the final three months of this year as the housing and credit crises weigh on individuals and businesses alike.
"Like many Americans, I am concerned," Mr. Bush said. "I am concerned about the fact that Americans see their costs going up. I know Americans are concerned about whether or not their neighbor may stay in their house. So we're dealing with these issues."
Mr. Bush also said he will reserve judgment about his administration's destruction of CIA interrogation tapes until several inquiries are finished. "Let's wait and see what the facts are," he said.
The destruction in 2005 of the tapes, showing harsh interrogation treatment of two terrorism suspects, is being investigated by the Justice Department, the CIA itself and by several congressional panels.
Mr. Bush stuck to the White House line that he personally did not know about either the existence of the tapes or their destruction until he was briefed earlier this month by CIA Director Michael Hayden.
"Sounds pretty clear to me when I say I have - the first recollection is when Mike Hayden briefed me. That's pretty clear," Mr. Bush said.
He also said that he believed the ongoing investigations by his administration, "coupled with oversight provided by the Congress, will end up enabling us all to find out what has happened."
"Until these inquiries are complete, I will be rendering no opinion from the podium," Mr. Bush said.
Mr. Bush spoke cautiously about the state of democracy in Russia under President Vladimir Putin, who has tightened control of the courts and the media and maneuvered to retain power as his term ends. Putin has agreed to serve as prime minister if his protégé, Dmitry Medvedev, is elected as president as expected.
Putin was just named Time magazine's "Person of the Year" for imposing stability that restored Russia as a world power.
"I presume they put him on there because he was a consequential leader," Mr. Bush said. "And the fundamental question is, consequential to what end? What will the country look like 10 years from now? My hope, of course, is that Russia is a country that understands there needs to be checks and balances."
Mr. Bush said he hasn't talked to Putin about his serving as prime minister. "I think we better just watch and see," Bush said.
Turning to Iraq, where Mr. Bush's military buildup is generally agreed to have helped reduce violence on the ground both against U.S. forces and Iraqi citizens, Mr. Bush said work remains to be done, especially in terms of political improvements in the country.
"Are we satisfied with progress in Baghdad? No, but to say nothing is happening is not the case," Mr. Bush said. And while the government of Prime Minister Nouri al-Maliki has come under considerable criticism from various quarters, "There is a functioning government."
Mr. Bush suggested that people were feeling better about their lives both in Iraq and Afghanistan, even though thousands of combat troops remain in both countries to provide security.
The president also:
This is Mr. Bush's second news conference this month. According to CBS News White House correspondent Mark Knoller, this will be his 40th news conference since taking office.