XJO 0.84% 8,295.1 s&p/asx 200

630b approved, page-2

  1. 746 Posts.
    The US House has passed a $630 billion-plus spending bill that wraps together a record Pentagon budget and also aid automakers.

    The legislation would also lift a quarter-century ban on oil drilling off both coasts.

    The legislation, which senators are expected to approve and send to President George W. Bush for his signature, is flying under the political radar compared with the White House's contentious plan to bail out Wall Street.

    The spending bill, which was passed 370-58, is fueled by a need to keep the government running past the Oct. 1 start of the new budget year. Passage also was greased by 2,322 pet projects totaling $6.6 billion.

    The measure is dominated by $488 billion for the Pentagon, $40 billion for the Homeland Security Department and $73 billion for veterans' programs and military base construction projects - amounting to about 60 percent of the budget work Congress must pass each year.

    Earlier this year, Congress provided $70 billion for US operations in Iraq and Afghanistan; more will be needed by mid-2009.

    Meanwhile, in a major victory for Republicans in this election season, Democrats capitulated and agreed to lift the offshore drilling ban. The move does not mean drilling is imminent. But it could set the stage for the government to offer leases in some Atlantic federal waters as early as 2011.

    The administration also succeeded in blocking Democrats' efforts to extend unemployment insurance, increase food stamp payments and help states deal with shortfalls in their Medicaid budgets.
 
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