Rense.com



Congress Proposes $50
Billion More For Iraq

By Adam Entous and Vicki Allen
4-30-4
 
WASHINGTON (Reuters) -- Key U.S. congressional committees are drawing up plans that could provide the Pentagon with up to $50 billion in emergency money for military operations in Iraq before the November election, congressional officials said on Wednesday.
 
President George W. Bush had hoped he would not need more money before the Nov. 2 election, but the surge in violence in Iraq and pressure from fellow Republicans in Congress has forced the administration to reconsider whether that will still be possible.
 
Congressional officials said Republican leaders in the House Appropriations Committee had started work on a proposal that could provide emergency funding to tide over the Pentagon until January as part of the annual defense bill.
 
That money could become available to the Pentagon on Oct. 1, the start of the 2005 fiscal year, and could allow Bush to hold off proposing a politically risky emergency supplemental spending package for Iraq at the height of the presidential campaign.
 
"If we end up doing what I'm going to suggest, there would be a strict accounting of the funds," said House Appropriations Committee Chairman Bill Young, a Florida Republican.
 
Young would not discuss figures or details, but said any money would be available to the Pentagon when they needed it.
 
He said he is waiting to see whether the funding can be designated as "emergency" spending in the defense bill -- allowing it to be appropriated without corresponding budget offsets.
 
A Democratic committee aide said the Appropriations Committee plan could provide up to $50 billion to cover the cost of military operations through January.
 
A separate House Armed Services Committee proposal would provide $20 billion to the Pentagon to start.
 
PENTAGON REVIEWING ITS NEEDS
 
In the Senate, a similar proposal may be gaining favor.
 
Senate Appropriations Committee Chairman Ted Stevens of Alaska has told fellow Republicans that the Iraq costs could be funded from the regular defense bill that the committee could take up as early as next month, according to Sen. Jon Kyl of Arizona, a member of Republican leadership.
 
White House officials would not say whether the administration supported the proposals.
 
Any new appropriations would come on top of the nearly $160 billion in emergency money approved so far for operations in Iraq and Afghanistan, and could be politically damaging for the president, especially if he is forced to request it himself before the November election.
 
While White House budget officials have maintained for months that additional resources are unlikely to be needed in calendar year 2004, Pentagon officials say they are not so sure.
 
Last week, White House spokesman Scott McClellan left open the door to another request if one is sought by military commanders.
 
With U.S. forces suffering their highest death rate in Iraq this month since the war's start, the Pentagon says it is reviewing its needs.
 
Air Force Gen. Richard Myers, chairman of the Joint Chiefs of Staff, said the service chiefs, when they last discussed the issue, saw a $4 billion shortfall. They felt they could get through August, but were worried about September unless some accounts were replenished, he said.
 
The planned extension of deployments for 20,000 troops will cost about $700 million, Myers estimated.
 
Congressional sources said the $50 billion being discussed may still not be enough if the violence continues.
 
They said the request could grow to as much as $75 billion to allow the Pentagon to replace Humvees, tanks, helicopters and other military equipment.
 
Copyright © 2004 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
 
http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=4978372


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