The demonstration project began in March 2008 and will last for two years.
Demonstration projects within the military began in the early 1990s.
He suggested that the program be tried first in a demonstration project.
The Senate measure calls for similar demonstration projects in other states.
Officials said the program would be increased if the demonstration project succeeded.
Some in his party are willing to settle on a demonstration project.
The Administration has now approved 30 such demonstration projects in 27 states.
But he said the President was open to the idea of a limited "pilot or demonstration project."
There will be no limit on the number of demonstration projects, they said.
"Why do we have demonstration projects if we're going to ignore the results?"