PRESIDENT Bush will hold the most lavish and expensive inauguration celebration in American history when he is sworn in for his second term next month. But he hopes to temper the four-day extravaganza by holding special events to honour US troops in Iraq.

Mr Bush’s inaugural committee is hoping to raise more than $40 million (£20 million) for the event, a record. It announced yesterday that the theme for inauguration week, Washington’s equivalent of the Oscars, will be “celebrating freedom, honouring service”.

It is seen as a valiant effort amid the frenzy of black-tie balls, fireworks, corporate donors and cocktail parties to remind revellers that America is a nation at war.

Mr Bush is intimately involved in the details of his second inauguration, the traditional celebration centred on the January 20 ceremony when US presidents take the oath of office. He is anxious that US troops be constantly honoured.

Mr Bush appointed Mercer Reynolds, the man who headed the President’s record-breaking $273 million re-election fundraising effort, and perhaps the biggest beast in the Republicans’ prodigious money-raising machine, to mastermind the inauguration’s funding. The results have been spectacular.

The committee has just sent out hundreds of letters to Mr Bush’s biggest campaign contributors, offering packages of inauguration benefits and access to the President for an extraordinary amount of money.

At $250,000, the “underwriter” package being offered by the committee, will get the donor four seats to Mr Bush’s swearing-in ceremony; ten VIP seats at the inaugural parade; two tickets to an “exclusive” underwriters’ lunch featuring Mr Bush and Vice-President Cheney; and twenty seats at candlelit dinners that will take place simultaneously at three locations in Washington, with special appearances by the President, the First Lady, and Mr Cheney and his wife, Lynne.

The package also includes ten seats at the “America’s heroes: a salute to those who serve” gala; four tickets to a youth concert hosted by the Bushes’ twin daughters; ten seats to the inaugural kick-off celebration and fireworks; six passes to their home-state black-tie ball, with appearances by the President and vice-President; and four passes to any of the nine official inaugural balls.

Those who donate $100,000 will be feted at a sponsors’ reception featuring the President and Vice-President, with two tickets to the President’s swearing-in, along with tickets to the candlelit dinners, youth concert, salute to soldiers, balls and other events.

Unlike presidential campaigns, inaugurations can receive unlimited corporate donations. But even for America’s most successful fund-raising President, some restraint has been imposed: a $250,000 cap has been placed on single donations, to avoid the appearance of greed and brazen corporate influence.

For the first time in any of America’s 55 inaugurations, Mr Bush will hold a “Commander-in-Chief’s” ball, with 2,000 free tickets for active troops who have served in Iraq or Afghanistan, or who are about to deploy there.

The committee’s chairman, Jeanne Johnson Phillips, said: “We recognise this time that we are a nation at war.”

Also prominent in a week when anti-war protesters have promised to descend on Washington, along with hundreds of thousands of citizens hoping to cheer on their President, will be thousands of police, Secret Servicemen and FBI agents. The first post-September 11 inauguration is a security man’s nightmare.

Like previous Presidents, Mr Bush will take the oath of office outdoors, on the steps of the US Supreme Court.

Most hotels in Washington are already fully booked for the week. The Ritz-Carlton came up with a $150,000, package which includes four nights in a luxury suite, first-class air travel, a pair of seats at the inaugural parade, and a butler who travels to their home to pack their belongings in new Louis Vuitton luggage. The Hay-Adams Hotel has sold a $25,000 package, which buys four nights in the Federal Suite.

For Mr Bush’s 2001 inauguration, his team raised nearly $40 million, a record at the time. Bill Clinton’s 1993 event was funded by $33 million of donations, and in 1997 by $23.7 million.

FIRST NIGHTS

Abraham Lincoln, a future president, lost his hat at Zachary Taylor’s inauguration in 1849.

Explore World News

• World Agenda

• Iraq News

• US & Americas News

• Europe News

• Middle East News

• Asia News

• Africa News

• Ireland News

Times Recommends

• Michael Jackson: Not the final chapter
• Indian Army spends10m rupees on golf buggies
• Sacha Baron Cohen forced to tone down Brüno