Senate GOP seeking to divide Labor-HHS/VA spending package

This year's appropriations "endgame" remained uncertain Tuesday, as the House was moving toward passage of a $215.4 billion spending package for four Cabinet agencies only to see it split into pieces as early as Wednesday in the Senate, putting the entire measure in limbo.

None of the 12 FY08 appropriations bills has been enacted, and there have been no signs of serious negotiations between the White House and Democratic leaders to whittle the $23 billion boost for domestic agencies Democrats are seeking above President Bush's requests.

Democrats attached to the $471 billion Defense spending bill a continuing resolution to extend most government operations at last year's levels into mid-December.

That legislation is scheduled for the floor later this week and is the only bill certain to be quickly signed into law.

In addition to the regular appropriations bills, Democrats are under considerable pressure to provide stopgap funding for the troops in Iraq and Afghanistan.

At the same time, anti-war liberals who wield significant clout within the party are opposed to any more "blank checks."

To avoid bogging down the underlying Pentagon spending bill, Democratic leaders are considering a separate bill this week providing as much as $50 billion to fund military action for another four months.

But with strings attached such as a goal of withdrawing troops from combat zones by the end of 2008, Bush will likely veto that package, causing Democrats to go back to the drawing board.

Bush and Republicans are demanding Congress complete work on the Veterans Affairs budget, which is tied up in the larger bill the House took up Tuesday night.

But Bush says he will veto the measure over $9.8 billion the Democrats added above his request for the Labor, HHS and Education departments.

Democrats funded GOP priorities in the Labor-HHS bill such as abstinence education and cut earmarks by 40 percent to about $690 million, or less than 0.5 percent of the bill.

But that was not enough to satisfy the White House, which Tuesday night reiterated its veto threat.

Senate Republicans, fearing the veterans' bill will be weighed down by added domestic spending, plan to use procedural tactics Wednesday to "surgically strike" the Military Construction-VA bill from the Labor-HHS measure.

"Our veterans deserve better. We shouldn't penalize them for the mismanagement and overspending of this Congress," said Senate Minority Leader Mitch McConnell, R-Ky.

Sen. Jack Reed, D-R.I., who played a key role in negotiating Military Construction-VA funding, said it is "such a compelling bill" that it ought to be signed into law regardless of Wednesday's procedural vote.

The CR attached to the Defense bill would fund veterans' programs at Bush's proposed budget, which is $2.9 billion above last year but $3.7 billion below the level contained in the FY08 Military Construction-VA bill.

Democrats did not appear to have a plan for moving the veterans' measure separately as of press time Tuesday, preferring to keep the pressure on Republicans to support the larger package. "You tell me: Who's responsible if the veterans don't receive their funding on time?" asked Rep. Jason Altmire, D-Pa.

As for the other spending bills, Democrats might send the Commerce-Justice-Science and Transportation-HUD measures to Bush's desk next week, but he is likely to veto those as well. The Senate has not passed five of the FY08 bills.

Lacking the votes to override Bush, Democratic leaders are at least preparing for the possibility of going back down to Bush's numbers, having instructed a number of subcommittees to come up with potential cuts.

Bush's priorities and GOP home-state projects could be first on the chopping block in that case.

But that would at least avoid the type of full-year CR Democrats resorted to when they took control after Senate GOP leaders did not take up most of the FY07 appropriations bills last year.

House Appropriations ranking member Jerry Lewis, R-Calif., lamented the state of the budget process. "Clearly, we are in disarray here and I'm not sure who's in charge," he said.