Budget deal still under negotiation; homeland spending bill moves forward

While negotiations on the fiscal 2005 budget resolution continue this week, Senate Appropriations Chairman Ted Stevens, R-Alaska, has announced plans to go ahead with a subcommittee markup of the fiscal 2005 Homeland Security spending bill Wednesday and full committee action Thursday.

Stevens also may act on the Defense appropriations bill on those days as well, although he could wait until the fiscal 2005 defense authorization bill currently on the Senate floor is completed.

Majority Leader Bill Frist, R-Tenn., is still holding out hopes for resolution of the budget talks, made more difficult by conservatives' balking at a proposed Senate rules change to reinstate "pay/go" offset requirements for three or five years, a move designed to win support from moderates. Adoption of the budget resolution would allow consideration of tax bills under expedited procedures, allow points of order against increasing spending on appropriations bills and allow House leaders to "deem" a debt limit increase without a separate vote.

GOP leaders are aiming to avoid a debt limit vote before the election, and Treasury Department officials have said they may be able to shift funds among accounts and avoid breaching the $7.4 trillion statutory limit until sometime this fall, aides said, although that would likely also require legislation. However, Treasury Secretary John Snow recently said Congress should approve a debt limit increase before the August recess to avoid complications.

The conflicting reports have led House Budget ranking member John Spratt, D-S.C., and Ways and Means ranking member Charles Rangel, D-N.Y., to draft a letter to Snow, which is being sent today, asking him to clear up the situation by June 25.

"It would be helpful if you could resolve this apparent confusion," the letter states, citing reports in CongressDaily, the Associated Press and elsewhere. "Please provide a definitive response explaining Treasury's position with respect to both when the federal debt is expected to reach its statutory limit, and when and how the Treasury Department will ask the Congress to respond to this situation."