Dems reach tentative deal on overall funds

House and Senate Democrats have reached a tentative agreement on an overall budget number they think will be acceptable to the White House, limiting fiscal 2008 spending to President Bush's $932.8 billion request, plus $3.7 billion for the Veterans Affairs Department.

The mixture of funding within that top-line was still in question, with the White House and Republican leaders wary of signing off on any package until they are able to review the details.

There is also the delicate issue of funding for the wars in Iraq and Afghanistan, which had not been resolved as of presstime.

Inclusion of at least $70 billion for the wars was likely to be a prerequisite for Bush's signature on the bill, and House Speaker Nancy Pelosi, D-Calif. Wednesday did not rule out Iraq funds without strings being part of a final package.

Senate Republicans are pledging to amend the bill to add war funding if it does not come over from the House with the money in it.

If it comes back to the House with unfettered war funding, "I personally will be voting against it," Pelosi said.

The tentative budget limit is essentially the president's number, plus added funds for veterans' benefits he has already said he would sign into law.

Earlier this year, the White House said the added $3.7 billion for veterans programs must be offset by cuts elsewhere in the budget, but congressional Republicans have been increasingly pressuring the administration to back off that position.

"We are going to provide the largest increase for veterans in the 77-year history of the department," said House Military Construction-Veterans Affairs Appropriations Subcommittee Chairman Chet Edwards, D-Texas, without getting into details.

The House version of the bill in the summer passed on a 409-2 vote; the White House at the time backed off a veto threat because of pushback from Republicans.

Administration officials disputed that there was a tentative deal on the proposed number for the regular discretionary portion of the budget.

White House spokesman Tony Fratto called it "flat-out untrue" that the administration was party to any agreement.

Other GOP sources said it was likely to pass muster once the details are available, provided there are no last-minute gimmicks or surprises and that war funding is included.

Democrats were considering designating billions of dollars in additional funds as "contingent emergency" spending, which would technically appropriate the funds but require Bush to release the money. An OMB spokesman also said the White House had not signed onto an agreement. But he noted there was progress, even as he pointed to potential pitfalls.

"We are encouraged by reports of movement in the right direction, but to know whether there is a bill the president can sign, we need to see the details," he said.

"In particular, we need to know the top line; we need to know how they spend within the top line; we need to know if they are abusing emergency designations; we need to know if there are unacceptable policy riders, and we need to know how they are treating funding for the troops."

Sources said Senate Minority Leader Mitch McConnell, R-Ky., was particularly concerned about that prospect, which would mask the true cost of the bill because such emergency funds would not count against the overall $936.5 billion budget cap.

White House Press Secretary Dana Perino said Wednesday that some emergency funding would be acceptable above Bush's top-line.

"I think that we would consider emergency spending if we needed to at the end of the day," she said, although she would not specify what is acceptable.

House and Senate GOP leaders have also said some emergency funds, for efforts like border security, could meet with their approval.

There is also the matter of policy riders on abortion and other issues Republicans oppose, although Pelosi said Democrats would likely be flexible on that front as well.

"Once again, this is a negotiation about a bill that will be signed by the president," she said.

Trimming the bill significantly is a major blow to Democrats, who initially proposed spending $22 billion above Bush's budget but lacked the votes to override his vetoes in the House.

After days of wrangling between House and Senate Democrats, they appear resigned to giving in to most of Bush's budget demands, including war spending.

"We're going to have some horrific decisions to make over the next few days," said Senate Transportation-HUD Appropriations Subcommittee Chairwoman Patty Murray, D-Wash.

She and other subcommittee chairs are being instructed to cut spending within their jurisdiction by another 1.6 percent, after they had already shaved about 2.5 percent off their bills to get to a previous target of splitting the difference with Bush.

That plan to add $11 billion above his budget was met with a veto threat over the weekend.

Democrats are hoping their legislative defeats will translate into electoral victories next year as they try to paint Bush and Republicans as insensitive to the needs of seniors, children and veterans. "We don't have the votes," said House Education and Labor Chairman George Miller, D-Calif. "Obviously we need a bigger majority in the Senate and a bigger majority in the House."

The House Thursday will take up a one-week extension of the current continuing resolution, which is set to expire Friday.