He urged Congress to pass a war supplemental funding bill, extend the Protect America Act electronic monitoring law and confirm his choice for U.S. attorney general, retired judge Michael Mukasey.

"By any measure, Judge Mukasey is eminently qualified to be the next attorney general," he told the conservative think tank, urging the Senate to work quickly to "confirm this good man."

Regarding wiretapping legislation, Bush said the intelligence community needed "effective" tools in the Protect America Act to monitor communications.

The war supplemental bill would provide equipment to U.S. troops in Iraq, Bush said.

"Congress should not go home for the holidays while men and women in uniform are waiting for the funds they need," he said to a round of applause.

"The only way to defeat the terrorists is to advance freedom," he said. "We are standing for those who yearn for liberty in the Middle East because the desire for freedom is universal."

With support of U.S. allies, Bush said, "we're keeping the pressure on the enemy."