Dems Boost Funding Levels, Redirect Money with Impunity Bush appears to have won the Battle of the Topline, with the House approving an omnibus package (summary; text) accepting President Bush's insistence on the $933 billion cap on total discretionary spending in FY 2008 he requested back in February. On top of that, he will get a $70 billion downpayment on his $200 billion "emergency" spending supplemental request.

With two votes, the House voted to approve $484.7 billion in domestic discretionary and emergency spending (253-154) and $31 billion for spending on the conflict in Afghanistan (206-201). The Senate will take up the bill today. It is expected that it will tack on about $40 billion in additional war funding. Unlike the House version, which prohibited any of the $31 billion war supplemental to be spent on operations in Iraq, the Senate's $70 billion war spending measure would fund both wars.

CQ Today reported ($) this afternoon the Senate is close to a deal on extending SCHIP into 2008. According to the article, a bill is being written to delay cuts taking effect Jan. 1 to Medicare physician pay rates that would include an extension of the SCHIP program. From CQ: The package also is expected to include a funding extension of the State Children's Health Insurance Program, or SCHIP, but it's uncertain for how long. There appeared to be agreement earlier on an extension until 2009, but the Republican aide cautioned that the situation was "fluid." House Democrats have been pushing to extend SCHIP funding until September 2008, in order to force another debate on what they see as a winning political issue. A extension until 2009 would certainly make the legislation more palatable to Republicans, however. SCHIP is set to expire this Friday if Congress does not act to extend it further.

More news is emerging from the budget deal reached over the weekend, and this tidbit is not good. The omnibus appropriations bills does not contain any language that would kill or restrict the private tax collection program run by the IRS. The version of the Financial Services Appropriations bill included language that would have stopped the IRS from outsourcing tax collection that was removed from the omnibus. Despite overwhelming evidence that the program is wasteful and dangerous, and strong support for ending the program, it appears the companies receiving contracts to keep one-quarter of the money they collect have too many political connections. It is possible Sen. Chuck Grassley's (R-IA) key voice and strong support of the program kept language out of the omnibus bill. I suppose it is back to the drawing board for public protection and privacy advocates - as well as anyone with the least bit of common sense - who strongly opposed the program. If you are someone who owes money to the IRS, watch out! With this program in place, who knows who will come knocking on your door.