Senate leader files cloture on spending bill with 2 percent pay raise

Taking advantage of a lull in the healthcare debate, the Senate Thursday began considering a nearly $450 billion fiscal 2010 spending omnibus package in an effort to complete most of the fiscal year's appropriations business in the next few days.

Senate action on the measure -- which includes six fiscal 2010 appropriations bills but not the Defense bill -- came after the House passed the package 221-202 earlier Thursday.

The Senate will consider the legislation this weekend because Republicans are blocking a consent agreement to complete the measure early next week. Senate Majority Leader Harry Reid, D-Nev., Thursday evening filed a cloture motion, setting a vote Saturday to limit debate, with final passage likely Sunday.

The package includes the $67.9 billion Transportation-HUD bill, which is the underlying legislative vehicle, the $64.4 Commerce-Justice-Science bill, the $24.2 billion Financial Services bill, the $163.6 billion Labor-HHS bill, the $78 billion Military Construction-VA bill, and the $48.7 billion State-Foreign Operations bill.

With five of the 12 annual spending bills already signed by President Obama, action on this package would leave only the Defense Appropriations bill unfinished.

In the opening rounds of the Senate debate, Sen. John McCain, R-Ariz., took aim at what he said were 4,752 earmarks totaling $3.7 billion in the legislation.

"Spending in domestic programs was increased by 14 percent while veterans' spending was increased by 5 percent," McCain said. "That shows the priorities around here."

McCain noted that Democratic leaders said an omnibus was needed this year to finish fiscal 2009 appropriations work only because former President George W. Bush was unwilling to compromise on spending levels.

"Where will the blame be placed now?" McCain asked. "We should be embarrassed by this process. Here we go again."

McCain cited several earmarks, such as $2.7 million for the University of Nebraska to support surgical operations in outer space. "I'm not making it up," McCain said incredulously. "The list goes on and on and on."

Democratic appropriators desperately wanted to get the bills done separately before the fiscal year ended Sept. 30. But they faced serious challenges, including receiving the White House's full budget later this year than usual due to the change in administrations.

Senate Transportation-HUD Appropriations Subcommittee Chairwoman Patty Murray, D-Wash., noted that the package would create jobs "and supports the continued recovery of our national economy."

She called for quick Senate action. "I hope we can get past the differences that we have and move quickly to get this bill to the president's desk," Murray said.

The House and Senate Democrats are pushing to pass a second spending package, which will include the fiscal 2010 Defense bill, before the end of next week, when the current funding extension expires.

But failure to clear the package by Dec. 18 would require another continuing resolution to keep the Defense Department and remaining government programs operating until Congress can act.

House Democratic leaders Thursday said the House will act early next week on the measure, which will also include an increase in the debt ceiling. The Defense package will also likely be the vehicle to extend unemployment insurance, COBRA health and food stamp benefits and tax breaks for small businesses -- as well as more federal money to states and localities to try to avoid public employee layoffs.

House Defense Appropriations Subcommittee Chairman John Murtha, D-Pa., who has missed most votes this week, canceled a closed-door hearing before his subcommittee Thursday afternoon with Gen. Stanley McChrystal, the top U.S. commander in Afghanistan. The meeting will not be rescheduled.

"Mr. Murtha is feeling better every day and will be back on the Hill as soon as possible to complete work on the pending fiscal 2010 Defense Appropriations bill," a Murtha spokesman said, adding that he is expected to return Friday.

The spokesman added that Murtha has been meeting with staff daily to discuss the Defense bill, as well as President Obama's new strategy in Afghanistan. Murtha did meet Wednesday with CIA Director Panetta.

Democratic leaders and the White House are negotiating whether to include in the Defense package legislation by Senate Budget Committee Chairman Kent Conrad, D-N.D., that would create a commission to make recommendations to reduce the deficit, which hit a postwar record $1.4 trillion in fiscal 2009.

Conrad and about 11 other Democrats have said they would not support an increase in the debt limit unless they get a vote on creating the deficit commission. Democratic leaders need their votes to pass the debt limit increase because Republicans are not expected to support it.

Conrad declined to go into the substance of the discussions. He said Thursday that: "I want to be able to vote [on the commission] at the same time as a debt limit extension. There are different ways to do that."

Conrad's comments came after Senate Finance Committee Chairman Max Baucus, D-Mont., took to the Senate floor Thursday to oppose the commission proposal because it would cede Congress' responsibilities to an unelected body.

"We don't need a commission to do our work," Baucus said "We don't need a new process to solve the problem. To solve the problem, we just need to solve the problem."

Dan Friedman and Megan Scully contributed to this report.