Hill passes conflicting Iraq bills

Both the House and Senate yesterday passed versions of the president’s request to pay for continuing the war on terror and rebuilding Iraq, but not before the Senate stripped $1.8 billion out of the administration’s request and made part of the remainder a loan rather than a grant to Iraq.

The Senate, on a voice vote, eliminated many of the small reconstruction projects included in President Bush’s original $87 billion request, such as a ZIP code study and an Iraqi enterprise business fund.

“A number of these expenditures don’t pass the smell test,” said Sen. Ron Wyden, Oregon Democrat, who sponsored the amendment to strip the money.

The Senate then passed its bill 87-12, with 37 Democrats joining 50 Republicans in voting for the bill. Eleven Democrats and the chamber’s independent voted against it.

The House passed a bill that more closely resembled the president’s request. The vote was 303-125, with 83 Democrats joining all but six Republicans in supporting for it.

The differences will now be hammered out in a conference committee. The chief issue will be whether the reconstruction money should be a grant, as the administration wants and the House passed, or partly a loan, as the Senate passed.

Still, both bills give Mr. Bush most of what he wanted and Republicans said the strong votes, including many Democratic leaders, show that the president’s policy remains popular.

“Look at the votes we just took. Congress supports this president and the mission in Iraq,” said Rep. Eric Cantor, Virginia Republican and chief deputy whip for House Republicans. “I think Congress is telling the American people this is part of the war on terrorism.”

Mr. Bush’s proposal had earmarked $66 billion for the U.S. military and about $21 billion to help rebuild Iraq.

Under the Senate bill, half of the reconstruction money would be an immediate grant and the other half would be loaned to Iraq under generous terms that include the possibility of forgiveness. The loan amendment passed 51-47 Thursday, with the help of eight Republicans.

The administration strenuously opposed the concept of loans, and won a victory when the House on several occasions rejected loan amendments.

Both House and Senate Republican leaders said they would fight against loans in the conference committee.

Senate Majority Whip Mitch McConnell, Kentucky Republican, told reporters he was confident the conference would produce a bill “the administration will be excited about.” The chairmen of the House and Senate Appropriations Committees, both Republicans, also promised to fight against loans.

But Sen. Ben Nelson, Nebraska Democrat and one of those who led the bipartisan loan effort, said Republicans would have to be wary of removing the loans.

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