
House Panel Passes $124 Billion Supplemental Bill
by Sam Kim, 3/20/2007
On March 19, the Bush administration said it would veto a supplemental appropriations bill being readied for a House vote expected to come as soon as March 22. The White House indicated that the president opposes language that would require troop withdrawal from Iraq as well as "excessive and extraneous non-emergency spending". The supplemental appropriations bill, at $124 billion, will be the largest supplemental bill ever considered by a house of Congress and has sweeteners in it to offset a tough vote on withdrawing troops from Iraq. The Senate Appropriations Committee is scheduled to consider its own version of the supplemental on March 22.
As introduced in early March, the House bill mirrored President Bush's request for $99.6 billion in appropriations for ongoing military operations, equipment for American forces, and training and equipment of Afghan and Iraqi forces. But as the bill got caught up in internal House conflicts regarding Iraq war policy, leadership sought to ease its passage with tradeoffs that certain Members wanted, and it grew in size. On March 15, the House Appropriations Committee approved the emergency supplemental appropriations bill, but by then it had grown to $124 billion.
A week before the Committee vote, Speaker Nancy Pelosi (D-CA), seeking to bolster the bill's chances, announced that the minimum wage bill passed by the House in January would be added to the supplemental. The wage measure consists of a $2.10 increase in the federal minimum hourly wage, from $5.15 to $7.25, over two years and a package of small business tax breaks that would cost $1.3 billion over five years. Although the minimum wage is a supplemental-sweetener, its inclusion is highly unorthodox in its timing: the Senate has passed a much-larger $8.3 billion set of tax breaks and the two tax packages are awaiting conference.
GOP Senators objected strenuously to including this minimum wage sweetener. Senate Finance Committee ranking member Charles Grassley (R-IA) told Congressional Quarterly [subscription], "Speaker Pelosi ought to know, there's another house. We are a bicameral Congress.... And there are things like the Senate Finance Committee. This is an intrusion on the prerogatives of the tax-writing committees." But it may have broken the logjam: on March 19, Grassley announced that he was dropping demands for a pre-conference agreement with House Ways and Means chair Charles Rangel (D-NY) on the wage bill's tax packages.
Congress added to the president's supplemental request about $20 billion in domestic spending, including:
- nearly $2.5 billion for Gulf Coast recovery
- $3.7 billion for agriculture disaster relief in the Midwest and California
- $750 million for the State Children's Health Care Insurance Program
- $400 million low-income energy assistance
- $400 million for timber-dependent communities in the Pacific Northwest
