An amendment urging the adoption of a bill calling for better coordination among the nation's 15 intelligence agencies, was struck down, Democrats said.
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The Senate bill is expected to be close to the House version's $418 billion, including $25 billion in funds for Iraq and Afghanistan that could be made available upon enactment.
Interim report stops short of placing blame, but federal officials point fingers at each other.
Agency uses new staffing, training and software to respond to problems, report says.
They argue that the current Select Committee on Homeland Security should be allowed to go out of business.
Opponents argue that nixing Accenture's contract would delay securing the nation's borders for two years and cost the jobs of 330,000 U.S. workers.
Measure would have created new penalties -- including up to 20 years in jail -- for contractors convicted of overcharging.
Rep. Sue Kelly, R-N.Y., laments "vast expanse of bureaucracies" that are currently responsible for seeking to cut off terrorist financing.
Senate leaders are attempting to reach a deal to wrap up debate on the fiscal 2005 defense reauthorization bill.
Recommendations for overhauling federal agencies expected at end of July.