Senate OKs $81 billion supplemental spending bill

The Senate Thursday approved an $81.26 billion fiscal 2005 supplemental spending bill that is significantly different in some respects from the House version and the Bush administration request, particularly in the area of domestic appropriations. The vote was 99-0.

The measure primarily would fund military operations in Iraq and Afghanistan, as well as relief for Indian Ocean countries recovering from the Dec. 26 tsunami.

The White House is pressing for a swift agreement, but perhaps more difficult than reconciling funding priorities will be how GOP leaders handle divisive immigration matters. Talk of horse-trading already has begun.

The House and Senate Appropriations committees also want to put the supplemental behind them to focus on fiscal 2006 appropriations. New chairmen in both chambers have pledged a more efficient and transparent process than in previous years. House Appropriations Committee Chairman Jerry Lewis, R-Calif., is prepared to begin the markup process in early May under a target of $843 billion, with or without a budget resolution.

Nonetheless, GOP leaders have set a deadline for a budget resolution by the end of April, when the Senate begins a weeklong recess.

The budget provides an overall discretionary spending cap for the appropriations panels, as well as entitlement spending and tax cut targets for inclusion in a filibuster-proof reconciliation package.

Republican leaders are committed to passing a budget this year after failing last year; this year the stakes are higher, as they have increased majorities in each chamber.

Republican leaders and the White House want to find more than $40 billion in savings from a range of entitlement programs over five years.

At least $10 billion of that would likely have to come from Medicaid. Health and Human Services Secretary Michael Leavitt met Thursday with Sen. Gordon Smith, R-Ore., who has led opposition to squeezing savings from Medicaid. "We're working on it," Leavitt said. People familiar with the meeting said the talks were positive.

Leavitt had been dispatched to try to get Smith to back down from an amendment he pushed through the Senate blocking cuts in Medicaid and creating a commission to examine the future of the program. "We need a budget, and everyone knows there needs to be reform in Medicaid, but how you do that is sensitive," Smith said.

Also sensitive is the issue of funds for overseas troops. During debate over the supplemental, Democratic senators seized on the opportunity to paint the Bush administration, and especially the Pentagon, as unresponsive to force protection needs.

The Senate approved, 61-39, an amendment by Democratic Sens. Evan Bayh of Indiana and Edward Kennedy of Massachusetts to add $213 million for armored Humvees.

Crossing the aisle to support the amendment were 16 Republicans, including Conrad Burns of Montana, who switched his vote to back the increase.

Also approved en route to final passage was a $147 million increase for border protection. That means a total homeland security increase of $536 million was approved on the floor, which would pay for 1,468 additional border patrol agents, immigration and customs officers and enforcement agents, as well as 2,000 additional detention beds.

The funds would be offset by reductions in funding for State Department diplomatic and peacekeeping activities. Secretary of State Rice is expected to weigh in during the House-Senate conference.

The Senate bill would provide about $74.8 billion for military operations, which is about what the administration requested, but $2 billion less than the House.

Overall, the Senate measure would provide $243.4 million for non-homeland security domestic items, including funds for flood relief in Utah and Hawaii and forest road repair in Southern California that neither the House nor administration requested.

But in order to swallow tough new standards on illegal immigrants the House bill would impose, senators will be more inclined to stand firm on including their favored projects. Emily Heil contributed to this report.