OMB Watch Statement OMB Watch supports Sen. Voinovich's amendment (# 4238). It would curb the recent over-reliance on supplemental spending legislation. Spending under any supplemental is entirely outside the regular order of the budget process and not included in formal deficit and debt projections, raising issues of fiscal transparency and accountability. This is an opportune moment to take stock of the evolving nature and policy implications of the recent over-reliance on supplemental appropriations bills and to consider some specific reforms.

Last week, we noted that Sen. John McCain (R-AZ) played a role in killing the Air Force's deal with Boeing to provide tanker planes. Citing corruption in the original bidding process as the reason for his intervention into the deal, McCain said: All I asked for in this situation was a fair competition...I never weighed in for or against anybody that competed for the contract. All I asked for was a fair process. And the facts are that I never showed any bias in any way against anybody — except for the taxpayer.

Economy -- Fed Moves to Ease Credit Crunch: The Federal Reserve is making $200 billion in short-term loans available banks holding diostresed mortgage-backed securities. The Dow jumped over 400 points on the news, its biggest one-day gain in five years. Wall Street Journal.

During the House Budget panel's mark-up of the budget resolution last week, presidential politics were the backdrop for some frivolity and hijinks. Rep. Rodney Alexander (R-IA) displayed a surprsing degree of pessimism regarding his party's prospects for the presidential elections in the fall, offering amendments to include in the resolution's deficits projections the costs of the health care plans of candidates Sen. Hillary Clinton and Sen. Barack Obama.