House, Senate prepare $40 billion supplemental spending bill

Struggling to adhere to the imperative of unity after Tuesday's tragedies, House and Senate negotiators reached tentative agreement late Thursday to adopt a $40 billion emergency supplemental appropriations measure, doubling the amount that had been discussed earlier in the day.

As of late Thursday night, House leaders were hoping to take the measure directly to the floor, but Senate action was not expected before today. At the same time, negotiators were trying to reach agreement on a resolution authorizing the president to use force against those found responsible for the attacks Tuesday in New York and Washington.

The White House quickly assented to the second $20 billion in requested spending. "The President is pleased to support a total of $40 billion in aid in addressing the needs and consequences created by this week's tragedies," said White House spokeswoman Claire Buchan.

Sen. Charles Schumer, D-N.Y., said President Bush immediately agreed to the extra $20 billion in disaster relief during a White House meeting with legislators from the areas affected by the terrorist acts. The vast majority of money will go to New York, according to Schumer, who said he was left "speechless" by Bush's swift response. But the senator was apparently unaware that Bush had already made up his mind and conveyed his acceptance of the new spending to Senate Majority Leader Tom Daschle, D-S.D.-- who was told first, according to one White House official.

Senate Republican Conference Chairman Rick Santorum of Pennsylvania said after the meeting with Bush that he had not requested extra funding from the President, noting that GOP Pennsylvania Gov. Tom Ridge had indicated that the state--where one of the hijacked planes crashed--would seek to handle the catastrophe on its own.

House Appropriations Committee Chairman Bill Young, R-Fla., and ranking member David Obey, D-Wis., briefed reporters on the tentative agreement reached with Senate counterparts--Appropriations Chairman Byrd and ranking member Ted Stevens, R-Alaska.

The $40 billion emergency supplemental would provide $20 billion up front and require that the second $20 billion be allocated in subsequent legislation, most likely in the regular FY02 appropriations process.

Of the first $20 billion, $10 billion would be available to the administration in consultation with Congress, but with no formal strings attached. To get the second $10 billion, OMB would be required to submit a detailed, account-by-account plan about how the money would be allocated. Congress would be given 15 days to review and express any concerns about the spending plan.

The supplemental language also specifies that at least $20 billion of the $40 billion--whenever approved--be devoted to domestic, humanitarian needs and disaster recovery and response, rather than for national security or intelligence activities.

Late Thursday night, the Office of Management and Budget objected to the spending restrictions proposed by congressional leaders and offered a counterproposal with fewer spending restrictions. However, OMB did not disagree with the overall amount.

The White House and congressional Republicans had initially proposed a $20 billion package--but later agreed to double the amount, after New York lawmakers insisted that $20 billion would be needed to respond to the massive devastation in New York City alone.

In addition, Obey and Byrd insisted that the final legislation do more to ensure White House consultation with Congress on how the money is to be spent than the White House and Republicans had proposed.

Mark Wegner contributed to this story.