GOP leaders meet with Clinton about budget deal

House Speaker Dennis Hastert, R-Ill., and Senate Majority Leader Trent Lott, R-Miss., met with President Clinton at the White House Thursday to discuss the outlines of a deal that would end the current budget stalemate.

The deal would cut the fiscal 2001 Labor-HHS appropriations bill from $113 billion down to as low as $107 billion, add another $1.7 billion over five years to the $38 billion Medicare "giveback" package, and include new language on ergonomics and immigration--issues that have stalled the Labor- HHS and Commerce-Justice-State spending bills, respectively.

After a bicameral Republican leadership session Thursday morning, House Majority Leader Dick Armey, R-Texas, said he thinks negotiators have reached agreements on the "principle" of outstanding issues, such as immigration and ergonomics.

As for the 10-year, $240 billion tax cut package, a top GOP Senate aide said repeal of the telephone excise tax, a minimum wage hike or any other items from the House bill will not be on the table this afternoon. Nor will a measure backed by Sens. Charles Grassley, R-Iowa, and Edward Kennedy, D-Mass., to make it easier for parents of disabled children to retain some of their Medicaid benefits.

But Armey said today's offer will increase the Medicare giveback proposal, with the additional money to go to rural hospitals, hospices, home healthcare providers and teaching hospitals. Those items, Armey said should be "easily agreed to."

Although Republican leaders met Thursday with House Appropriations Committee Chairman Bill Young, R-Fla., and Senate Appropriations Committee Chairman Ted Stevens, R-Alaska, to review proposed reductions to the Labor-HHS spending bill--which the leadership instructed the chairmen to cut--they had not nailed down the details. Armey did not elaborate on GOP leaders' response to appropriators' proposed Labor-HHS spending cuts, saying only that, "We talked about different ways of achieving it," and that "the White House had some suggestions, too."

Asked whether congressional leaders would still go to the White House without a final Labor-HHS spending bill, Stevens shot back: "I wouldn't if I were them. I am sure they'll go. But we are not ready for that."

In fact, a leadership source said Stevens and Young were asked to talk to their respective ranking members about how to fashion the final Labor-HHS spending bill before Lott and Hastert headed down Pennsylvania Avenue.

Stevens also railed against the administration for proceeding with a "stupid process of taking two days to get a one-day extension. If they want us to finish next week," Stevens added, "they'll give us until Wednesday or Thursday."

In fact, Armey said GOP leaders will propose the next CR run through next Thursday, which they believe could give negotiators time to wrap up a deal. The House votes today on a one-day CR to last through midnight Friday, and is expected to be in session Friday to vote on the next stopgap measure.

"If we're not done by next week, we'll probably work on a long-term CR" running into January, said House Republican Conference Chairman J.C. Watts of Oklahoma.

A senior White House official today reacted negatively to talk of a CR lasting through next Thursday, although he declined to indicate whether Clinton would veto such a measure.

Charlie Mitchell, Geoff Earle and Stephen Norton contributed to this story.