
In the election of 2000, Bush lost the popular vote, and for a time it looked as if he had lost the Electoral vote as well. The election came down to the state on Florida, and on election night no one was sure who had won the state. At one point it had been reported that Democratic candidate Al Gore had been awarded the state, but the networks soon reversed this prediction. It would take a series of recounts, and a controversial Supreme Court decision to stop the recount (with Bush leading by a margin of 537 votes) to decide the election. Bush's opponents questioned the legitimacy of the result, but on January 20, 2001, George Walker Bush was sworn in as the 43rd President of the United States.
Bush appointed a number of key advisors who who had worked under him when he was the Governor of Texas. These included Senior Counselor Karen Hughes, Senior Adviser Karl Rove, legal counsel Alberto Gonzales, and Staff Secretary Harriet Miers. As his White House included National Security Adviser he appointed Stanford University Professor Condoleezza Rice, and he selected former Transportation Secretary Andrew Card as his Chief of Staff. Paul H. O'Neill, who had served as Deputy Director of the Office of Management and Budget, was appointed Secretary of the Treasury, while former Missouri Senator John Ashcroft was appointed Attorney General. Secretary of State Colin Powell had served as Chairman of the Joint Chiefs of Staff under the first President Bush. Secretary of Defense Donald Rumsfeld had served in the same position during the Ford administration.
Two days after his inauguration, Bush hosted the swearing in ceremony for new White House staff. In his remarks he referenced the prayer of John Adams that was being inscribed in a mantle piece in the White House: "I pray Heaven to bestow the best of Blessings on this House and on all that shall hereafter inhabit it. May none but honest and wise Men ever rule under this roof."
On his first day in office, Bush moved to block federal aid to foreign groups that offered counseling or any other assistance to women in obtaining abortions. Days later, he announced his commitment to channeling more federal aid to faith-based service organizations. He rejected the argument made by critics that this would dissolve the traditional separation of church and state in the United States. Bush later created the White House Office of Faith-Based and Community Initiatives to assist faith-based service organizations.
Bush began his administration with an appeal to bi-partisanship. On February 4 he held a meeting with Democrats at a retreat that the Democratic legislators were holding. He spoke to reporters after the meeting, saying of the Democrats, "These are professionals who want to serve their nation."
That same month, he set to work on what would become known as the "Bush Tax Cuts". On February 5 Bush appeared at a White House event, with four families that he described as being potential beneficiaries for his new tax rate system. The next day he made several public appearances in support of a tax relief within Washington and northern Virginia. He also acknowledged that it was the birthday of former President Ronald Reagan and he issued a public statement praising Reagan. On February 8, Bush released a blueprint for his tax relief package of $1.6 trillion. Bush's promise to cut taxes had been the centerpiece of his 2000 campaign, and true to his word, upon taking office, he made tax cuts his first major legislative priority. There had been a budget surplus left from the presidency of Bill Clinton. With the support of Federal Reserve Chairman Alan Greenspan, Bush argued that the best use of the surplus was to lower taxes. Bush did not have the complete support of his Treasury Secretary Paul O'Neill, who expressed concerns over the size of the tax cut and the possibility of future deficits. Bush handed off the writing of the tax cut bill to Vice-President Dick Cheney. The bill was put before Congress in March 2001. Bush rejected the idea of so-called "triggers" which would phase out the tax reductions if the government ran deficits. He argued that the tax cuts were the best way to stimulate the economy regardless of deficits.
The Economic Growth and Tax Relief Reconciliation Act of 2001 won the support of congressional Republicans and a minority of congressional Democrats. Bush signed the bill into law in June 2001. The act lowered the top income tax rate from 39 to 35 percent and also lowered the estate tax. The narrow Republican majority in the Senate necessitated some changes to the final bill, including a provision that the tax cuts would phase out in 2011 barring further legislative action. After the tax bill was passed, Senator Jim Jeffords of Vermont left the Republican Party and began caucusing with the Democrats, giving them control of the Senate.
On February 13, Bush called Prime Minister Yoshiro Mori of Japan to apologize for the unintended sinking of a Japanese fishing trawler with high school students aboard by a U.S. nuclear submarine.
On February 15 Bush announced that he would meet with the President of South Korea Kim Dae-jung on March 7th. The two men met as scheduled and Bush expressed his concerns about the government of North Korea, which he considered to be a threat. North Korea had developed nuclear weapons several years previously, and the Clinton administration had sought to trade economic assistance for an end to the North Korean WMD program. Secretary of State Powell urged the continuation of the rapprochement, but other administration officials, including Vice President Cheney, were more skeptical of the good faith of the North Koreans. Bush instituted a plan to isolate North Korea in the hope that the regime would eventually collapse.
Bush wanted to become "the education president" and on February 20, 2001, he participated in an education round table with his wife, Laura Bush, and Rosa Smith, Superintendent of the Columbus School district at Sullivant Elementary School in Columbus, Ohio. The next day, on February 21, he announced that the budget for the following year would include federal support of another $1.6 billion for both primary and secondary education programs.
On February 26, Bush addressed the National Governors' Association Meeting. He told his audience that he predicted that history will record him as being "a faithful friend" to the United States governors. He reminded his audience that he was a governor once himself and understood the responsibility governors had. He announced a new federalism imitative, and expressed an interest in having a close relationship with the Governors' Association.
On March 6, Bush announced that he would nominate John Negroponte for US Ambassador to the United Nations. Two days later, he was pleased that the House of Representatives had passed the cornerstone of his tax-relief plan, calling it a "victory" for American families, people and entrepreneurs. He travelled to Sioux Falls, South Dakota for a speech on March 9th, and three days later he spoke at the Youth Activities Center while in Panama City, Florida. He told his audience that his administration wants to make sure service members are housed properly during their service. That same day he announces his plans for the nomination of Paula J. Dobriansky as Under Secretary of State for Global Affairs and Dale Cabaniss for Chairman of the Federal Labor Relations Authority.
Environmentalists were dismayed when on March 13 Bush met with Congressmen, and reversed a campaign pledge of his to impose mandatory emission reductions on carbon dioxide on US power plants. On March 15 he sent a letter to Capital Hill outlining his views on campaign reform in hopes of reaching an agreement.
Later that month, on March 20, Bush met with the Prime Minister of Israel, Ariel Sharon. It was their first meeting since both took office. He pledged support for the Israelis and said that he would continue to work towards peace in the middle east. He also said that he intended to follow through on a campaign promise to move the US embassy in Israel from Tel Aviv to Jerusalem. On March 23 he made a statement on another international incident, that of an attempt by rebels to topple the government of Macedonia. Bush said: "The United States joins its allies and the United Nations in strongly condemning the violence perpetrated by a small group of extremists determined to destabilize the democratic, multi-ethnic government of Macedonia. The United States and its allies have a long-standing commitment to the sovereignty and territorial integrity of Macedonia."
April began with another international incident, that being the collision of a Chinese jet and an American Spy Plane that took place on April 1st. The Navy spy plane was forced to make an emergency landing on Chinese soil and the Chinese government were holding the crew members in custody. Bush issued a statement in which he said: "We have allowed the Chinese government time to do the right thing, but now it is time for our service men and women to return home, and it is time for the Chinese government to return our plane. This accident has the potential of undermining our hopes for a fruitful and productive relationship between our two countries. To keep that from happening, our service men and women need to come home." The next day Secretary of State Powell expressed regret for the death of a Chinese pilot after the collision. On April 6, Bush reported that the detained US service members were "just fine". He received a letter from the wife of the Chinese pilot, which criticized him for not apologizing for the collision. He replied to her on April 8.
The crew returned home on April 11th. Speaking at the White House Rose Garden, Bush said the U.S. "did nothing to cause the accident" between the U.S. EP-3 spy plane and a Chinese F-8 fighter jet over the South China Sea on April 1. The 24-member crew of the spy plane arrived back in the United States when their C-17 transport touched down at Hickam Air Force Base in Hawaii. Bush said U.S. and Chinese representatives would discuss the accident and related matters at a meeting on April 18. He said: "I will ask our United States representative to ask the tough questions about China's recent practice of challenging United State aircraft operating legally in international air space." Bush had spoken by phone with crew members of the spy plane. He told the media that the crew represented "the best of American patriotism and service to their country. They did their duty with honor and with great professionalism."

The year 2001 would end with Bush receiving record high approval ratings of 92% in October. These would remain steady within the 80–90% range for about four months after the September 11th attacks. As his Presidency continued however, his ratings steadily declined as the economy suffered and the Iraq War initiated by his administration appeared to have no end in sight and as the premise for going to war, the presence of weapons of mass destruction in Iraq, was not proven. By early 2006, his average rating was averaging below 40%, and in July 2008, a poll indicated a near all-time low of 22%. Upon leaving office the final poll recorded his approval rating as 19%, a record low for any U.S. President.