Negotiators reach deal on supplemental spending bill
Senate appropriators agree to trim $14.4 billion from their version of bill to meet Bush's demands.
House-Senate negotiators reached agreement Thursday on a $94.5 billion fiscal 2006 supplemental spending bill for Iraq and Afghanistan and hurricane relief, ending a weeks-long standoff over funding levels and avoiding a veto fight with the White House.
The Appropriations committees were preparing to file the conference report Thursday night, although the measure will not be sent to President Bush until early next week. The House is expected to act Monday, with the Senate to follow Tuesday.
Senate appropriators agreed to shave $14.4 billion from their version to meet Bush's demands. Republican leaders won support from two Democratic conferees -- Sen. Mary Landrieu of Louisiana and Defense Appropriations ranking member Daniel Inouye of Hawaii -- enough to offset the loss of two Republicans, Sen. Mike DeWine of Ohio and Labor-HHS Appropriations Subcommittee Chairman Arlen Specter of Pennsylvania.
Specter and DeWine opposed the conference report, arguing its $873 billion spending cap for Senate consideration of FY07 appropriations underfunds education and health programs by at least $7 billion. "It's insufficient as it is, but I want the $7 billion," Specter said.
Landrieu was able to secure a White House commitment to fund Louisiana community development projects at $4.2 billion, within $5.2 billion in total Community Development Block Grant funds to Gulf Coast states. The bill contains $19.8 billion overall for Katrina relief and reconstruction, including $550 million to rebuild the New Orleans VA hospital and $3.7 billion to rebuild and strengthen levees and floodwalls in and around the city.
Inouye initially planned to sign the conference report, but with an exception to a decision by GOP leaders to drop language blocking the Transportation Department from relaxing foreign ownership requirements for U.S. airlines. But that caveat would not pass muster with House rules for conference reports.
Inouye dropped his reservation after lobbying by Defense Appropriations Subcommittee Chairman Ted Stevens, R-Alaska, and House Defense Appropriations ranking member John Murtha, D-Pa.
Altogether, the supplemental provides $4.3 billion for foreign assistance, international peacekeeping activities and overseas food aid. That includes $2.7 billion for State Department operations and reconstruction projects in Iraq.
A $21.3 billion fiscal 2007 Foreign Operations bill on the House floor Friday cuts Bush's Iraq request by $227 million; House appropriators argued the supplemental makes up for the cut. The bill cuts $2.4 billion overall from Bush's foreign aid request to finance increases in domestic spending.
Egypt was a winner in both the supplemental and in the regular foreign aid bill. Supplemental negotiators dropped a Senate-proposed $47 million economic aid rescission, to go instead to victims of Hurricane Stan in Guatemala and drought relief in East Africa. The shift was rejected by the White House and House Republicans.
During initial debate on the foreign aid bill Thursday, the House voted down an amendment by Appropriations ranking member David Obey, D-Wis., and International Relations Chairman Henry Hyde, R.-Ill., that would have slashed $100 million from $1.7 billion in FY07 Egypt aid and instead funded aid to Darfur and global HIV/AIDS programs. The amendment was defeated 225-198.
The underlying supplemental bill funds military activities in Iraq and Afghanistan at $65.8 billion, and $50 billion more is contained in the House's fiscal 2007 Defense spending bill. Another installment will likely be needed next year.
Most of the money, $37.9 billion, is for day-to-day operations and maintenance costs. Another $15 billion is included for procurement and $10.3 billion is for military pay and allowances. The measure adds funds above the Bush request for Army tracked combat vehicles and armored Humvees, but cuts by $1 billion funds requested to train and equip Iraqi and Afghan security forces.
The measure also provides $1.9 billion to support President Bush's border control proposals, including funds to hire 1,000 new Border Patrol agents, provide 4,000 detention beds, and deploy National Guard troops to the Southern border. There is also $2.3 billion for pandemic flu preparedness.