Appropriations and Emergency Supplemental

Update on the President's emergency supplemental appropriation for Iraq and Afghanistan and the status of the remaining regular appropriations.

Ultimate passage of the President’s $87 billion emergency supplemental appropriation for Iraq and Afghanistan is almost assured. Whether or not the war in Iraq was supported, there is general agreement that we now have an obligation to provide security and reconstruction. The emergency supplemental pairs reconstruction costs with more funding for the military - making it hard to vote against.

Nevertheless, the United States must "borrow" the $87 billion by going further into record deficits at a time when many domestic needs remain unmet--the poverty rate is rising, long-term unemployment is at a twenty year high, fewer people than last year have health insurance, and continuing fiscal difficulties in most states herald deep cuts in services and programs. In response to the growing public unease about more spending in Iraq, a bipartisan group of Senators (8 Republicans, 42 Democrats and 1 Independent) passed an amendment to the emergency supplemental appropriation bill (S. 1689) sponsored by Evan Bayh (D-IN) and John Ensign (R-NV) on October 17 that would require that $10 billion of the $20.3 billion for reconstruction aid to Iraq be given as a loan, not a grant, unless other countries forgive most of Iraq’s existing debt. A similar amendment sponsored by Mike Pence (R-IN) was introduced in the House for H.R. 3289, which would make half of the $20 billion a loan with no conditions. It was ruled out of order.

President Bush has expressed his strong opposition to any of the reconstruction funds being given as a loan. His Statement of Administration Policy (SAP) is unequivocal. This week the House and Senate will try to negotiate their differences in an attempt to finalize the appropriation before an international donor conference in Madrid on Thursday. It is not clear whether the Senate will be successful in retaining the loan provision, or whether the President would veto the bill if it contained any loan provisions at all.

Meanwhile only three appropriations bills for fiscal year 2004, which started September 1, 2003, have been signed into law - Homeland Security, Defense, and Legislative Branch. The rest of the government is running on a continuing resolution (CR) that temporarily funds it through October 31, 2003. There are very few legislative days remaining until then and the emergency supplemental request for Iraq and Afghanistan will likely take up most of this week. It is also likely that Congress will pass yet another CR to fund government, and a number of the remaining appropriations bills will be combined into one omnibus bill.

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