Cut Bush defense, foreign aid plan: panel

By Richard Cowan

WASHINGTON (Reuters) – A House of Representatives
committee, intent on adding money to domestic social programs
during an election year, on Tuesday cut back President George
W. Bush’s spending requests for defense and foreign aid.

The House Appropriations Committee, in the early stages of
crafting fiscal 2007 bills, set caps on spending that would
result in $4 billion being shaved from Bush’s defense request
and about $2.4 billion from foreign aid.

Even so, both accounts would be funded at higher levels
than this year.

The new spending levels for defense and foreign aid may not
mean much in the near term because Congress might pass
“emergency” spending bills that could again boost expenditures
for both accounts.

Details on how the spending caps would be applied to
specific defense and foreign affairs programs would be worked
out later this summer.

As he did last year, Rep. David Obey of Wisconsin, the
senior Democrat on the House Appropriations Committee, called
for scrapping some of the Bush tax cuts for the wealthiest
Americans, spending $13 billion of the savings on domestic
programs and setting aside another $13 billion for deficit
reduction.

The committee defeated Obey’s proposal 37-25.

NOT ENOUGH, DEMOCRATS SAY

Even with the Republicans’ added funds for social programs,
Democrats said health care for soldiers and veterans would be
cut, as would community development grants, housing for the
elderly and disabled and Amtrak railroad operations.

The appropriations panel approved the Republican spending
priorities that would be part of an $873 billion package for
federal programs next year. Besides defense and foreign aid,
those programs include farm subsidies, highway construction and
domestic security.

The move to provide more money in the fiscal year starting
October 1 for domestic social programs came in response to
clamoring from moderate Republicans in the House who face
potentially difficult re-election campaigns.

Meanwhile, the House Budget Committee is still struggling
to win House approval of a $2.7 trillion fiscal 2007 budget
blueprint that covers the $873 billion in funds for
“discretionary” programs.

The $2.7 trillion plan covers the bigger pot for Social
Security, Medicare and other “mandatory” programs that continue
without annual congressional approval.

House leaders are hoping to pass the measure on Thursday.
But House Majority Leader John Boehner acknowledged problems.

“I don’t have the votes for a budget. And we’re going to
work this week to get the votes for a budget,” the Ohio
Republican told reporters.

That budget plan, which will probably win no support from
House Democrats, calls for raising U.S. borrowing authority by
about $653 billion next year to total $9.62 trillion.

Even if the House manages to pass its budget plan, Senate
aides have said it is too late in the year to work out a
compromise budget.