OMB head cheers Senate passage of war-funding bill

Office of Management and Budget Director James Nussle said Friday President Bush will sign a war supplemental spending package cleared by the Senate late Thursday, praising the legislation as "a victory for our men and women in uniform."

He said Bush will decide when to sign the package once he receives it from House leaders. "Lawmakers ultimately passed a bill that achieved the president's three principles: meeting the needs of our troops, not tying the hands of military commanders, and not exceeding his requested discretionary spending levels." The Senate approved the measure late Thursday night, 92-6.

Senate action on the bill follows approval of the package by the House last week, after Democratic and Republican House leaders struck a deal with the White House.

The package is made up of two amendments. The first includes $165.4 billion for the wars, which provides funding through the summer of 2009. That figure is reduced to $161.8 billion in the second amendment to provide an additional $3.6 billion for other needs. The Senate considered only the second amendment Thursday night because they had passed the first amendment providing the war funding, 70-26, in May.

The second amendment provides domestic funding, including a boost in veterans' education benefits that can be transferred to spouses and children. The Blue Dog Coalition had asked House Democratic leaders to offset the cost of the increased veterans' benefits, estimated at $62.8 billion over 11 years. But the idea was dropped in the negotiations with the White House.

The second amendment also includes a 13-week extension of unemployment insurance, which is expected to cost $8.2 billion over 11 years. The legislation would retain a requirement under current law that beneficiaries work at least 20 weeks to be eligible for benefits, which was kept in at the behest of Republicans. Democrats had sought to remove the requirement. Democrats also dropped a proposal to provide another 13 weeks of unemployment insurance to states with high unemployment rates.

In addition, the supplemental contains language to block implementation of six of seven White House-proposed regulations for Medicaid and provides $2.65 billion for Midwest flood relief and other disaster recovery. The package would also ensure Israel would get $170 million in aid for fiscal 2009 if Congress does not finish work on the appropriations bills by the end of the fiscal year. After approval of the bill, Senate Appropriations Committee Chairman Robert Byrd, D-W.Va., late Thursday underscored the need for a second supplemental package that would fund domestic priorities that were not included in the war supplemental. Byrd led an effort to increase domestic spending in the bill, but was rebuffed by the White House.

"There is more to do," Byrd said in a statement. "I am disappointed that the White House blocked our efforts to add funding to help the Gulf States recover from Hurricane Katrina, to provide additional Low Income Home Energy Assistance, and to invest in our infrastructure. I have consulted with the Leadership, and next month, the committee will consider a second supplemental to deal with the Midwest floods, Hurricane Katrina, and to make critical investments in America."