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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: Rick Faurot who wrote (30369)	10/21/2003 8:25:26 PM
From: Rick Faurot	Read Replies (1) \| Respond to of 89467

Bush Threatens to Veto Iraq Bill Over Loans Tue October 21, 2003 05:18 PM ET By Vicki Allen WASHINGTON (Reuters) - President Bush on Tuesday threatened to veto a bill providing $87 billion he has requested for troops and reconstruction in Iraq if Congress insists on part of the package being in the form of a loan. But the House of Representatives in a largely symbolic vote backed loans by a wide margin, setting the stage for intensive negotiations over what is a key pillar in Bush's Iraq strategy. The Senate had earlier voted to make half the $20 billion Bush sought for Iraq's reconstruction into loans, reflecting concern about the cost of the occupation at a time of pressing economic needs at home one year before U.S. elections. Top Republicans said they would try to kill the Senate provision when House and Senate negotiators meet to reconcile the two versions of the bill before sending Bush the final measure, probably next week. "I hope grants will prevail and I will continue to work for them," said Senate Majority Leader Bill Frist of Tennessee. White House budget director Joshua Bolten, in a letter threatening the veto, said loans would impede U.S. plans to stabilize the region following the invasion by U.S. forces, which have subsequently come under frequent attack. Adopting loans not grants slows "efforts to stabilize the region and to relieve pressure on our troops, raises questions about our commitment to building a democratic and self-governing Iraq and impairs our ability to encourage other nations to provide badly needed assistance without saddling Iraq with additional debt." Shortly after Bush's threat to veto the entire $87 billion bill -- which includes $67 billion to support U.S. troops in Iraq and Afghanistan -- over the loan issue, the House voted 277-139 to direct its negotiators on the bill to support loans when they meet with their Senate counterparts. CONCERN OVER SPENDING The House also backed Senate measures for expanding health care for veterans and troops that Bush opposes. Eighty-four Republicans joined 192 Democrats and one independent in the House vote. It was not binding but showed lawmakers' reluctance to spend $20 billion on oil-rich Iraq in the face of deepening U.S. deficits and demands for better roads, schools, health care and other needs at home. But senior Republicans expressed confidence that Bush would eventually prevail. House Appropriations Committee Chairman Bill Young, a Florida Republican, said: "The conferees will not vote for this loan provision." "I can tell you exactly what that vote means -- nada, nothing," said Sen. Trent Lott, a Mississippi Republican. "The conferees are going to do what is right for the country, and what the administration feels is right." The Senate last week narrowly voted to make half of the reconstruction money loans, while the House defeated a similar measure pushed by Democrats. House Republican leaders had maneuvered to prevent a vote on a Republican loan plan. Democrats questioned why Bush would threaten to veto the Iraq bill, which he had said he needed urgently, over a fraction of the huge package. Senate Minority Leader Tom Daschle of South Dakota called it "troubling that the administration is willing to jeopardize these funds over a dispute over the loan -- especially when the vast majority of the American people support the loan." (additional reporting by Thomas Ferraro)