In a news conference yesterday, President Bush put pressure on Congress to pay for as much of the hurricane relief as possible by cutting spending. He urged that funding be cut in both non-defense discretionary spending and entitlement spending. His comments prompted House Budget Committee Chairman Jim Nussle (R-IA) to claim that he will seek even more cuts in entitlement expenditures than those laid out in April's budget resolution. Currently the resolution instructs that entitlement spending be cut by $35 million over the next five years. Nussle said in an interview that Gulf Coast reconstruction costs should be partly offset through across-the-board reductions in discretionary spending, beginning with a 2 percent "haircut" from the $843 billion agreed to under the FY06 budget." The Coalition on Human Needs has an analysis highlighting how those cuts will affect human needs programs. One has to wonder where these gestures of fiscal responsibility were when Congress passed trillions of dollars worth of tax cuts in 2001 and 2003, which were not offset by any spending cuts. That Congress also wants to push ahead with extending reduced rates for capital gains and dividends taxes -- tax breaks which benefit primarily the wealthy -- further serves to illustrate that these spending cuts could be avoided. Bush also asserted yesterday that even though Congress has a "diminished appetite" for overhauling Social Security, he has not taken the issue off the table. Bush said, "Social Security for me is never off. It's a long-term problem that's going to need to be addressed." However, the solutions he claimed to support a few months ago would lower guarenteed benefits and cost $700 billion over the next decade. Not exactly a great way to cut down federal spending.

Fiscal year 2005 ends this Friday, Sept. 30, and House and Senate Republican leaders have not been able to pass all spending bills for FY 2006 on the floor. Thus, we can expect them to pass a stop-gap funding bill to cover federal government spending by the end of the week. According to an aide, GOP leaders in both chambers will push through a CR to fund government programs through Nov. 18. While some believe this extension will give appropriators sufficient time to wrap up their work on the outstanding FY 2006 appropriations bills, others think GOP leaders will not make their ambitious goal to pass all of the bills as separate measures this year. While the House has passed all eleven of its spending bills, the Senate has only passed eight of twelve, and only two of those have been given final approval and sent to Bush for his signature.

By law, the Secretary of Homeland Security must provide Congress with weekly reports detailing how FEMA is spending Katrina relief funds. The first report was sent to Congress September 15, and the second was sent yesterday. According to Rep. David Obey (D-WI) -- ranking member on the House Appropriations Committee -- the second report sent to Congress has virtually no details in it, much like the first report.

Obey said, "We asked for specific information on how they are awarding contracts and who contracts are going to. Instead of telling us who is doing what and how, we got a few spreadsheets." In order to get spending details, Obey and Senate ranking member Robert Byrd (D-WV) had specifically sent a letter to the OMB. Their requests, however, were not heeded, and their letter never answered. Instead of knowing how the money is being spent, Obey said, "We don't know what the administration is doing because they don't know what they are doing. We don't know where the nearly $16 billion FEMA's allocated went, we don't know what they're planning to do with the $44 billion they've got left."