From the White House, the president addressed an area of his anti-terror approach that he has suffered a setback in the courts.
Military lawyers have urged a system patterned on the existing system of military courts martial.
But Attorney General Alberto Gonzales has objected to rules that would give terror suspects the right to remain silent or challenge hearsay evidence.
The administration proposes legislation to create a new military code to try enemy combatants.
President Bush has said the U.S. needs new tactics to combat terrorism.
On Tuesday he mentioned Osama Bin Laden 17 times, and he quoted Al Qaeda’s chief as himself tying Iraq to a bigger war.
President George Bush states, "For Al Qaeda, Iraq is not a distraction from their war on America. It is the central battlefield, where the outcome of this struggle will be decided."
Democrats had none of it, holding up a study claiming Al Qaeda has doubled in size.
Senate Minority Leader Harry Reid of Nevada said, "The report is a stunning indictment of the Bush foreign policy."
Retired Army General Wesley Clark comments, ""Invading Iraq was a mistake, a strategic blunder."
But senate republicans came to the president's defense.
Senate Majority Leader Bill First of Tennessee said, "The bottom line is that there have been no terrorist attacks in the United States since 9-11."
Republican Senator Mitch McConnell of Kentucky said, "It's been because we've been on offense going after these people in Afghanistan and in Iraq."
But republican senators reportedly split from the president on military trials.
They support existing law and more rights for defendants than the white house wants and could introduce their own legislation next week.