Measure would have created new penalties -- including up to 20 years in jail -- for contractors convicted of overcharging.
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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.
Postal officials want the inspector general to develop recommendations to prevent a similar mistake from occurring in the future.
Recommendations for overhauling federal agencies expected at end of July.
New procedures will ensure compliance with federal regulations, after misuse reports.
Administration has qualms about competitive sourcing and e-government provisions in an early version of the bill.
Report finds that information technology security spending is set to rise 2 percent in fiscal 2005, a sharp drop from previous years.