By Larry Jones
May 19, 2008

Although the President has threatened to veto the war supplemental appropriations bill if it reaches his desk with additional domestic funds, Democratic leaders in the House and Senate have included more funds for a number of domestic programs in their respective versions of the bill. The House version includes $720 million to expand veterans’ education benefits over the next two years; and $15.6 billion for a 13-week extension of unemployment benefits for workers in all states plus an additional 13 weeks for workers in states with high levels of unemployment. To offset the cost of the additional veterans education benefits, the bill calls for a slight increase in taxes on wealthy individuals earning more than $$500,000 and couples earning more than $1 million annually. This provision is strongly opposed by the President and Republican members in both chambers.

The House version also includes, at the request of the President, $5.8 billion to rebuild the levees in New Orleans and an additional $210 million for the Census Bureau to address cost overruns.

Similar to the House version, the Senate version includes additional funds for veterans’ education benefits and unemployment benefits. In addition to those, an additional $490 million is included for Byrne formula grants to help state and local law enforcement agencies fight crime; $450 million in added support for firefighting; $451 million for the Federal Highway Administration Emergency Relief Program to repair roads and bridges damaged by unexpected catastrophes or natural disasters; $400 million to prevent the layoff of teachers and other educational staff in rural schools across the nation, and $275 million for food and drug safety activities.

Also, in the Senate version of the bill $10.4 billion is included for recovery efforts in New Orleans and surrounding areas related to Hurricanes Katrina and Rita. This is $4.6 billion more than the House version and the amount requested by President. Also both versions of the bill include a provision that would place a moratorium on seven Medicaid regulations that would shift millions of dollars in health care cost to state and local governments.

In a surprise move the House voted down an amendment on May 15 to add $162.5 billion to fund the war in Iraq and Afghanistan. Most Democrats and some Republicans oppose any further funding of the war. The amendment was approved by a vote of 141 to 149, with 132 (mostly Republicans upset because the bill came to the floor without going through committee markup) voting present. The House approved a second amendment by a vote of 227 - 196 that would set December 31, 2009 as the target date for withdrawing combat troops from Iraq. A third amendment was also approved by a vote of 256 – 166 to add increase funds for veterans’ education benefits, unemployment benefits and the offsetting tax increase,

During markup of the Senate measure on May 15, the Senate Appropriations Committee voted 20 – 9 to add $1 billion for low-income housing energy assistance, $50 million for tracking unregistered sex offenders, and $100 million for fighting crime on the southern border.

Although the House version of the bill does not include any war supplemental funds, the Senate Appropriations Committee version includes a total of $193 billion, of which $168.9 billion is for fighting the war in Iraq and Afghanistan. This is $9 billion more than the President requested for the total supplemental package. The full Senate is scheduled to begin debating the war supplemental May 19 and both chambers are aiming to complete action on a final bill by June 15. To gain the support of the President and Republican members in Congress on a final bill, some Democrats acknowledge that the December 31, 2009 combat troop withdrawal provision and most of the additional funds for domestic programs may have to be removed.