*EPF416 01/22/2004
Senate Passes Massive Spending Bill for Fiscal Year 2004
(Bush wins less funding than he requested for development aid, fight against AIDS) (610)

By Andrzej Zwaniecki
Washington File Staff Writer

Washington -- The Senate has approved a $370 billion spending bill, which funds 11 departments, several other agencies and foreign operations for the fiscal year that started October 1, 2003.

After overcoming delaying tactics used by Democrats, the chamber on January 22 voted 65-28 to pass the omnibus bill a month after the House of Representative gave it its approval.

President Bush welcomed the passage and said he will sign the measure into law.

"I am pleased that the Senate has passed the omnibus budget bill, which fulfills important commitments like AIDS relief, education and D.C. school choice, veterans health care, law enforcement, and other priorities," he said.

In a statement issued by the White House Bush also promised to cut the budget deficit in half over the next five years.

"I will continue to work with the Congress to focus on priorities, cut wasteful spending, and be wise with the people's money," he said.

One of the provisions in the bill disputed by Democrats -- in addition to those concerning overtime pay and media ownership rules -- is one that imposes a two-year delay in the enforcement of the country-of-origin labeling on non-processed meat sold in the U.S. market.

The provision remained in the legislation despite bipartisan congressional opposition, which has grown stronger since the first case of bovine spongiform encephalopathy (BSE), or mad cow disease, was discovered in the United States in December 2003. Senate Appropriations Committee Chairman Ted Stevens agreed, however, to revisit the issue when the first fiscal 2005 spending measure moves through Congress.

In addition to funding numerous domestic programs, the bill provides $17 billion for foreign operations, about $1 billion more than appropriated for fiscal year 2003 but almost $2 billion less than President Bush requested for 2004.

The measure provides $1.65 for the global fight against AIDS, particularly in Africa and Caribbean. Together with money appropriated through another section of the bill, AIDS funds would total $2.4 billion, $0.6 billion less than the $3 billion a year over five years authorized by Congress in 2003. Republican appropriators, who vowed to eventually hand over the full $15 billion proposed by Bush, justified the reduction expressing concerns that the AIDS program might not be able to spend the full $3 billion in its first year.

The measure also reduced funding for a new U.S. development aid program. It provides $650 million -- half of what the president requested -- for the Millennium Challenge Account, a new program designed for countries that are governed justly, support economic freedom and invest in their people. Again, appropriators said that they decreased funding on concerns that, without an organizational structure in place, the program would not be able to spend the requested amount.

The bill also appropriates:

-- $4.4 billion in foreign military grants for Israel, Egypt and Jordan.

-- $2.4 billion in economic aid for the Middle East, including $145 million for the Middle East Partnership Initiative launched in 2002 to support economic, educational and political reform.

-- $1.19 billion in international food aid.

-- $4.1 billion for State Department diplomatic and consular programs, $309 million more than in the fiscal year 2003.

-- $1.5 billion for security improvements and replacements of vulnerable U.S. embassies.

-- $1.47 billion for contributions to international organizations and international peacekeeping activities.

-- $557 million for international broadcasting.

Six other spending bills covering the Departments of Defense, Homeland Security and other agencies were enacted earlier.

Since October 1, 2003, the federal government was operating on stopgap measures.

(The Washington File is a product of the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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