House chairman may slow Homeland bill in customs fee dispute

House Ways and Means Committee Chairman Bill Thomas, R-Calif., is threatening a procedural maneuver known as a "blue slip" that could slow action on the fiscal 2005 Homeland Security appropriations bill, according to sources familiar with ongoing discussions.

The Senate added about $784 million during floor debate on the measure, offset by an extension of Customs Service user fees. Revenue measures must originate in the House under the Constitution -- and Thomas has already included about $19 billion in revenue raisers for his foreign sales corporation/extraterritorial income exclusion bill from new Customs fees.

"We're aware that it could be an issue and we're looking at what our options are," a Senate Appropriations Committee aide said. The Senate approved its version of the Homeland Security appropriations bill Tuesday night, while the House passed its bill in June.

Thomas has the constitutional authority to invoke a "blue slip" on the entire Homeland Security bill -- effectively killing the measure -- unless conferees strip the Senate amendment. "The committee is examining it now, but it's premature to make that decision," a Ways and Means spokeswoman said.

House sources said Thomas has made his concerns known to GOP leaders, although they said it is too soon to say if the amendment would have to be dropped in conference with the Senate. They noted strong support for the amendment from, among others, Senate Homeland Security Appropriations Subcommittee Chairman Thad Cochran, R-Miss.

The $784 million in add-ons include $200 million for the Northern Border air wing to provide security at five bases along the Canadian border; $128 million for rail security; $56 million for emergency management performance grants; $50 million each for federal air marshals, fire grants, non-profit security grants, radiation detection equipment, customs and border inspections, border patrol agents, customs and immigration investigative staff, and detention and removal operations. The underlying bill would provide $32 billion in fiscal 2005 discretionary spending.

Aside from the blue slip issue, conferees will have to negotiate a level of supplemental agricultural assistance acceptable to the White House, as a bipartisan group of farm-state lawmakers in both chambers and members of the Florida delegation are insisting on additional aid.

The Senate added $3 billion in drought aid for farmers and ranchers, and Florida lawmakers are seeking at least $700 million more in conference for aid to nurseries, citrus and sugar growers and others who have suffered as a result of recent hurricanes.

Appropriators are also awaiting estimates from the Federal Emergency Management Agency, Small Business Administration and other agencies about damage related to Hurricane Ivan, which is expected to add to the $3.1 billion package President Bush has already submitted to Congress.

Appropriators are expected to add additional hurricane aid to the Homeland Security bill, after Congress approved an initial $2 billion last week.