Late on April 3, the Senate and House passed their respective versions of a nearly $80 billion supplemental appropriations to pay for the war with Iraq.

Republican leaders in both chambers managed to block most - but not all - attempts to load the supplemental with more spending. The measure is slated to go to conference early in the week of April 7 so it can be considered in each chamber before the April 11 deadline set by President Bush.

Here is a review of both bills' major provisions:

Senate Bill

Homeland Security -- $4.676 billion

$500 million for DOJ's Counterterrorism Fund

• These funds are a down payment on FY04 requirements.

$1.135 billion for DHS' Counterterrorism Fund

• $215 million for the President's Emergency Response Fund
• $580 million directly to the Coast Guard

$2.2 billion for Office of Domestic Preparedness (first responders)

• $1.420 billion for grants to States for protection and preparedness activities (80% must be allocated by states to localities within 60 days)
• $450 million for grants to augment security at critical infrastructure facilities
• $30 million for direct technical assistance to States
• $100 million for protection or preparedness needs of high-threat urban areas $200 million (Sen. Specter amendment) for first responders in big cities at higher risk for terrorist attacks.

Smallpox, Bioterrorism, and Public Health -- $105 million to help municipalities provide smallpox and other vaccinations to first responders.

Aviation -- $3.5 billion

• $2.7 billion to help airlines with terrorism-related security costs.

House Bill

Homeland Security -- $4.2 billion

$2.2 billion to the Office of Domestic Preparedness for first responder grants (80% required to be allocated from states to localities within 45 days)

• $1.5 billion for ODP's basic grant program to states
• $700 million for high threat, high density urban areas

$1.5 billion homeland defense

$498 million for border and port security

• $230 million for Coast Guard's targeted seaport security functions and port vulnerability assessments
• $193 million for non-intrusive inspection technologies for cargo and portal radiation monitors
• $35 million for container security
• $40 million for TSA's port security efforts

• $85 million for reimbursements to state and local law enforcement officers and National Guardsmen for increased security measures at airports and other critical transportation sites.
• $30 million for surface transportation security related initiatives.
• $100 million for additional staffing requirements along the Northern Border, including special agents, intelligence analysts, air and marine enforcements personnel, inspectors and Border Patrol agents.
• $235 million for airport modifications to install checked baggage explosive detection systems.

$500 million for Counterterrorism

• $400 million for counterterrorism activities at the FBI.
• $50 million for the Counterterrorism Fund.
• $50 million for security activities by the US Marshals Service and other federal security efforts.

$165 million for Bioterrorism and public health activities

• $16 million for the CDC for research of SARS.
• $94 million to assist state and local health authorities with the costs of the civilian smallpox vaccination program.
• $50 million to compensate volunteers who experience adverse effects from smallpox vaccinations.

Aviation

$3.178 billion for U.S. airlines to cover increased security costs from February 2002 to September 2003.

We've just posted the draft version of the administration's TEA-21 reauthorization bill. Head over to the analysis side of the site to check it out.

Senator Kay Bailey Hutchinson (R-TX) plans to propose an amendment to the FY 2003 Supplemental Appropriations Bill, intended to assist the struggling airline industry.

First, the amendment will reduce the federal passenger ticket tax from 7.5% to 5% for one year. The Department of Transportation general fund will reimburse the airline trust fund for lost revenues. Such a reimbursement is expected to cost about $1.8 billion.

Hutchinson’s amendment would also provide the airlines with $1 billion to cover security costs accrued since 9/11. Air carriers will work individually with the Department of Homeland Security to determine how much money each carrier is entitled to.

The amendment also extends the availability of federal war-risk insurance for another year. The policy was supposed to end on December 31, 2003.

Finally, Hutchinson’s amendment would make permanent the $100 million limitation on airline liability for third party damages from acts of terrorism. The amendment may be considered when the Senate beings mark-up of the supplemental appropriations bill on or about April 1st.

On the Senate side, the committee with jurisdiction over the airline industry is the Commerce, Science and Transportation Committee chaired by John McCain (R-AZ). McCain recently chided Delta Airlines for providing executives with million-dollar bonuses, while simultaneously laying off thousands of workers. McCain told reporters at that time that an airline aid package “might be in danger”.

In the House, Democratic Whip Steny H. Hoyer (MD) and House Transportation and Infrastructure Committee Ranking Member James L. Oberstar (D-MN) met with airline representatives March 27. Hoyer feels, "a healthy airline industry is key to a strong economy and our nation's security, so it is the responsibility of Congress to be a part of the solution--to not act is not an option." Oberstar stressed the need to relieve the great security burden placed on the airlines after 9/11. The Minnesota Democrat also feels the federal government has a responsibility to mitigate the adverse affect that rising fuel costs have had on the airline industry.

On the Republican front, an aide to Speaker of the House Dennis Hastert (R-IL) confirms that the Speaker supports some form of direct aid to the airlines in the supplemental appropriations bill, but did elaborate on specifics. House Aviation Subcommittee Chairman John Mica (R-FL) also supports some form of aid, but has advised lawmakers not to strip the airline trust fund of revenue to finance such aid. Mica feels the trust fund must remain intact to fund key airport infrastructure projects funded out of AIR-21.

The Senate just passed their $2.2 trillion budget resolution by a margin of 56-44. In the resolution, the administration's proposed tax cuts are cut in half from $726 million to $350 million. It also does not include another administration favored amendment that would call for the commencement of drilling in the Arctic National Wildlife Refuge.

The House passed their resolution last week by three votes. Both sides will meet for conference to resolve differents in both chamber's bills. The tax cut is expected to land somewhere in the middle: about in the $500 million dollar range.

The only Republican to vote against the bill today was Senator John McCain (R-Arizona) who is against any discussion of tax cuts during the ongoing war against Iraq.

Medicare officials are now estimating that because Medicare spending surged unexpectedly last year, Medicare beneficiaries will face a 12.4% increase in their premium. In addition, doctors' fees for treating Medicare patients will be cut by 4.2%.

This cut in doctors' fees comes just after President Bush signed legislation to increase Medicare spending for doctors' services by $54 billion over ten years. The prospect of a pay cut for doctors creates a political problem for President Bush and Congress. Medicare cut the average doctors' fee 5.4% last year, and many doctors say they cannot afford to take new Medicare patients if the government cuts their fees again.

In addition, members of Congress from both parties have promised to provide Medicare coverage of prescription drugs. However, even without new benefits, the cost of the program is growing rapidly.

Some of the increases in Medicare spending last year include the following:

• Inpatient hospital care, up 10 percent, to $104.9 billion
• Outpatient hospital services, up 10 percent, to $15.4 billion
• Skilled nursing homes, up 9 percent, to $14.6 billion
• Home health care, up 14 percent, to $10.5 billion
• Durable medicare equipment, including wheelchairs, up 20 percent, to $6.5 billion
• Hospice care, up 24 percent, to $4.6 billion

Yesterday, House Republicans tried to bring a bill to the floor that would establish a fund to compensate workers who become ill from smallpox vaccinations. The bill, introduced by Rep. Richard Burr (R-North Carolina), mirrors the administration proposal and a Senate bill (S 15) by Senator Judd Gregg (R-New Hampshire).

In attempting to bring the bill to the floor, they bypassed the House Energy and Commerce Committee. The bill is stalled in the Rules Committee, as Republicans and Democrats offered competing proposals for compensating lost wages. The Rules Committee adjorned last night calling for more amendments and postponing to today a decision on how to move forward.

President Bush called for 500,000 first responders to volunteer to be inoculated from a potential smallpox threat in light of heightened terrorist threats. As of mid-March, a little more than 20,000 workers have volunteered. The low response reflects concerns over the side effects and the lack of a federal compensation. Rep. Burr's bill would award a $262,000 lump sum to survivors in the event of death or permanent or total disability. It would reimburse individuals two-thirds of their salary up to a $50,000 lifetime limit for lost pay beyond the first five days of work missed.

Senator Gregg's proposal stalled last week in a dispute with Sen. Edward Kennedy (D-Massachusetts). The House Democratic proposal would increase compensation for lost pay to an annual payment of 75% of a worker's salary, up to $75,000. Democrats want the fund to be designated as mandatory spending. Republicans want to make any payments from discretionary funds.

Today, the full House Education and the Workforce Committee will consider H.R. 1261 which would reauthorize the Workforce Investment Act. The bill was approved by the panel's 21st Century Competitiveness Subcommittee on a 15-12 vote last Thursday.

The bill would eliminate some job-training programs and focus on math and reading skills for recipients. It consolidated 60 job-training programs into block grants allocated to states. It allowed adults seeking training to use vouchers to pay for services such as classes. It also creates personal re-emplyment accounts for unemployed individuals up to $3,000.

The Senate just voted 51-48 to cut the President's tax cut plan to $350 million dollars. Three Senate Republicans crossed party lines. Last week the House voted for the President's full plan estimated at more than $700 million dollars. The House and Senate will now meet in Conference to work out a compromise.

Senate Democrats were able to delay the adoption of the budget resolution until the Administration told Congress how much the war with Iraq would cost. In a supplemental being sent to Capitol Hill today, the Administration has indicated a nearly $75 billion price tag.

Today, the Senate is considering more than 50 amendments, the majority from Democrats in anticipation of Wednesday afternoon's adoption of the budget resolution (S Con Res 23). Once it is adopted, it will trigger a conference with the House who has already adopted its version of the measure.

Because of the large size of the supplemental, Senate Republicans are unlikely to try to reverse the adoption of an amendment introduced by Senator Russ Feingold (D-Wisconsin) to reduce the President's economic stimulus package by $100 billion.

Senator Kent Conrad (D-North Dakota) will offer an alternative budget blueprint. Senate Budget Committee Chairman Don Nickels (R-Oklahoma) will offer a number of amendments directed at increasing the tax cut number.

Today, President Bush is sending to Capitol Hill, an emergency funding request for nearly $75 billion dollars. The money, according to the President, is directly related to winning the war in Iraq.

The supplemental consists of $63 billion for defense which consists of military operations against Iraq, restocking ammunition, aid to coalition partners, extinguishing oil well fires and for intelligence. It consists of $8 billion for foreign aid and reconstruction which includes aid to Jordan, Israel, Turkey, Egypt, Afghanistan, the Philippines and Columbia, as well as money for Iraqi relief and reconstruction. The final $4 billion is targeted toward homeland security which includes aid to state and localities and federal operations.

Congress will likely act quickly on the President's request. But Democrats are bound to use the size of the supplemental to support their view that the proposed tax cuts are too large. For their part, the administration has asked lawmakers not to add money to the bill to fund their own priorities.

On March 21, the Senate passed an amendment to the budget resolution that would increase highway and transit spending over the next six years.

The amendment, introduced by Christopher S. Bond (R-Missouri), chairman of the Senate Environment and Public Works Committee Transportation and Infrastructure Subcommittee, would add $50 billion to highway spending and $10 billion to transit spending over the next years. Bond’s amendment, which passed by a margin of 79-21, amounts to a 28.9% increase in highway and transit spending over the original budget blueprint, which funded highway programs at $206 billion and transit programs at $44 billion over six years.

The Bond Amendment was co-sponsored by 18 senators, including Sen. Harry Reid (D-Nevada), the ranking member on Bond's subcommittee, Environment and Public Works Committee Chairman James M. Inhofe (R-Oklahoma), ranking member James M. Jeffords (I-Vermont), Senate Banking Committee Chairman Richard C. Shelby (R-Alabama) and ranking member Paul S. Sarbanes (D-Maryland).

One prominent opponent of the amendment was Senate Budget Committee Chairman Don Nickles (R-Oklahoma), who objected to highway and transit spending exceeding revenues generated by user fees. Nickles added that dipping into the general transportation fund for such programs would be a mistake. Senator Bond countered that Congress should allow the highway trust fund to capture more revenues like the ethanol tax, spend down the balance and be able to retain the interest on trust fund balance. According to Bond, "the administration's 2004 budget provides allocations that remain wholly inadequate for conquering the ever growing needs of the people who use our nation's transportation infrastructure". The Missouri Republican also cited a statistic that every $1 billion in transportation spending equals 47,500 jobs.

Finally, the Senate passed an amendment introduced by Senate Appropriations Committee ranking member Robert Byrd (D-West Virginia), which would more than double the administration's request of $900 million for Amtrak and bring the total allocation to just more than the 1.8 figure, which is what Amtrak had initially requested. The amendment passed by a 51-49 margin, with Zell Miller (D-Georgia) being the only democrat in opposition. Republicans Lincoln Chafee (R-Rhode Island), Arlen Specter (R-Pennsylvania), Olympia Snowe (R-Maine) all broke party line and supported the amendment. Senator Byrd said the money will "allow the railroad to make some long-deferred capital investments to improve Amtrak's reliability and ensure the continuation of safe and timely rail service".

Upon Senate passage of the budget blueprint, the resolution will head to Conference, where differences between the Senate and House versions will be ironed out.