War Supplemental Bill Awaits Final House Approval

When Congress returns from its Memorial Day recess, the House will take up the Senate's $250 billion supplemental war spending proposal. After the Senate added on $165 billion for war funding to the House's bill (which contained no money for the wars), it also tacked on some $10 billion in additional non-defense discretionary spending above the House's level of $21.1 billion. Although similar to the House version, the Senate's bill differs in a few key aspects, and the House will have to approve the Senate version or continue negotiating by amending it and passing it back to the upper chamber. On May 15, the House approved a war spending bill but curiously failed to provide funding for the wars in Iraq and Afghanistan. Democratic House leadership sliced the war bill into three amendments: one for the war funding itself; one for war policy; and one for non-defense spending. To avoid some potential parliamentary pitfalls, Democratic leadership decided to skip a markup in the Appropriations Committee and move the war funding measure through Congress by hollowing out and amending the previously approved but unsigned Military Construction-VA FY 2008 Appropriations bill (H.R. 2642).

In response to this strategy, 132 Republican House members expressed their ire by voting "present." Combined with the votes of anti-war Democrats, the amendment that would have added $163 billion to the bill for funding the wars in Iraq and Afghanistan through the first few months of the next president's term was defeated 141-149.

The other two amendments up for a vote — war policy language and non-defense spending measures — fared much better. By a vote of 227-196, the House approved language that would require troop withdrawals from Iraq to begin within 30 days of the bill's enactment, with a target for full withdrawal by the end of 2009.

The non-defense spending amendment garnered even more support, passing 256-166. Its adoption was secured only after Democratic leadership appeased the fiscally-responsible Blue Dog Coalition by including an offset to the measure's $52 billion expansion of the G.I. bill. The $54 billion revenue raiser would impose a half-percentage point increase to income taxes on individuals earning over $500,000 and married couples earning more than $1 million each year. The Blue Dogs insisted on including an offset for the G.I. bill provision to comply with PAYGO rules because that program is mandatory, not discretionary, spending.

In addition to expanding the G.I. bill, the non-defense spending amendment would:

  • Extend unemployment insurance benefits 13 weeks beyond the current limit of 26 weeks
  • Prevent the enactment of several Medicaid regulations designed to reduce payments to states
  • Provide $10 billion in foreign aid, including over $1 billion to help ease the global food crisis
  • Partially close funding gaps for various federal agencies, including $200 million for U.S. Census Bureau cost overruns
  • Fully fund President Bush's request for $5.8 billion for levee repairs in New Orleans

One week after House approval, the bill was taken up by the Senate, which overwhelming approved (70-26) the addition of $165 billion in war funding while striking the war policy language requiring soldier withdrawal from Iraq . Surprisingly, the Senate not only agreed to up the House non-defense spending level by $10 billion but passed this spending by a veto-proof margin (75-22).

The Senate's non-defense spending provisions differ somewhat from the House's, however. Although the Senate approved the G.I. bill expansion, it elided PAYGO and dropped the tax provision that would offset its costs. And, in addition to the $5.8 billion in levee repair provided for in the House bill, the Senate's version would add $4.6 billion for Gulf Coast reconstruction. The Senate amendment includes the House initiatives but also increases funding for local law enforcement grants; the Federal Highway Administration; federal food and drug inspection, rural schools, and firefighting; and various science initiatives.

When Congress reconvenes the week of June 2, the House Blue Dog Coalition and anti-war Democrats have decisions to make. If the House Blue Dogs or the Out of Iraq Caucus rejects the Senate's proposals, the Senate may think twice about its generous non-defense spending package and strip most of it out — except the G.I. bill extension — in order to attract enough Republican votes to ensure passage in the House.

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