Congress provides $40 billion in emergency funds

Congress today overwhelmingly approved a $40 billion emergency supplemental measure to respond to Tuesday's terrorist attacks in time for President Bush's afternoon trip to view the devastation in New York.

The Senate passed the bill on a 96-0 vote, with the House following suit with a 422-0 vote early this afternoon.

Despite the unanimity, the $40 billion package was only readied for today's action after what Senate Appropriations Chairman Robert Byrd, D-W.Va., characterized as a "very contentious back and forth" late-night negotiating session that brought Office of Management and Budget Director Mitch Daniels and White House Legislative Affairs Director Nicholas Calio to the Capitol to meet with top congressional leaders, appropriators and other interested lawmakers of both parties.

Although appropriators struck a deal Thursday evening to which the White House agreed verbally, the language of the deal did not pass muster either with OMB or with many Republican senators who learned about it later.

Senate Minority Whip Don Nickles, R-Okla., and Sen. Phil Gramm, R-Texas, warned Senate Democratic leaders and the House that, without changes to ensure strict accountability over the second $20 billion, the proposed deal could face a filibuster.

After a marathon session that lasted into early this morning, and two days during which the administration pushed for maximum flexibility and appropriators fought to protect Congress' power of the purse, they produced a final bill.

It makes the $40 billion available only after the President submits an official request designating the entire amount as an emergency and consults with the Appropriations committees.

Of the $40 billion, $20 billion is available up front, with the first $10 billion to go for federal, state and local preparedness, counter-terrorism, transportation security, public facilities and transportation system repairs, and national security.

The second $10 billion could come only 15 days after OMB submits a detailed spending plan to the Appropriations committees, while the final $20 billion is to be obligated "only when enacted in a subsequent emergency appropriations bill."

It requires at least half of $40 billion "be for the disaster recovery and assistance related to the terrorist acts in New York, Virginia and Pennsylvania."

OMB also must report quarterly to the Appropriations committees on how the money is being used, and the President must submit to Congress "as soon as practicable detailed requests to meet any further funding requirements."

Sens. Charles Schumer and Hillary Rodham Clinton, both D-N.Y., expressed their appreciation following Senate passage.

"The bipartisan effort stretched from one end of the country to the other," Schumer said, expressing hope that the spirit of bipartisanship in which the bill was passed will "last for an extremely long time."

Later, Senate Majority Leader Tom Daschle, D-S.D., said it was "too early to tell" whether the $40 billion would be considered a down payment, but several senators left open the door to passage of an additional emergency spending bill.

House Appropriations ranking member David Obey, D-Wis., supported the final bill despite lingering misgivings. Obey hoped appropriators could further scrutinize emergency spending, noting, "Congress has an obligation to know how the public's money is spent even in wartime, even in times of crisis." But he praised House Speaker Hastert--who pushed negotiators to get a deal in time for enactment today--for his bipartisanship.

"You can't paper over differences," Obey said. "You have to work them out and that's what we did. And I congratulate the speaker."