FY2007 Supplemental Appropriations for Defense, Foreign Affairs, and Other Purposes

Publication Date: July 2007

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance

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Abstract:

On May 1, the Congress formally presented to the President a House-and-Senate passed version of H.R. 1591, a bill providing supplemental appropriations for FY2007 and setting target dates for withdrawing most U.S. military forces from Iraq. That evening, the President vetoed the bill. On May 2, by a vote of 222-203, with approval of 2/3 required, the House failed to override the veto. House and Senate leaders are now considering what steps to take next. House appropriators have discussed a possible 60 day extension of funds for military operations. Leading Republicans have discussed a possible compromise that would establish benchmarks for progress by the Iraqi government. It remains unclear if an agreement that did not restrict funding in some way would be acceptable to the Democratic majority.

On Iraq policy, the now-vetoed conference agreement requires the Secretary of Defense to begin redeploying troops out of Iraq by July 1, 2007, with a goal of completing the redeployment within 180 days (i.e., by the end of December, 2007), unless the President determines that Iraq has met specific security and political benchmarks. If the President determines that Iraq has met the benchmarks, the bill requires redeployment to begin by October 1, 2007, with a goal of completing the redeployment within 180 days from then (i.e., by the end of March, 2008).

After redeployment, the bill permits U.S. forces to be deployed in Iraq only to protect U.S. citizens and facilities; for customary diplomatic purposes; for targeted, limited-duration missions against global terrorist organizations; and to train and equip Iraqi security forces. The agreement also prohibits obligation of half the economic aid to Iraq in the bill until the Iraqi government meets political benchmarks and commits $10 billion to reconstruction. The bill includes House provisions requiring the President to certify that military units achieve, or to waive, goals for unit readiness and time between deployments.

On spending, the bill provides $21 billion more than the Administration requested, including $7 billion more than originally requested for defense (of which $3.1 billion is for base realignment and closure), about $250 million more than requested for international affairs, $3.5 billion more than requested for Gulf Coast hurricane relief (the request included $3.4 billion for FEMA), and over $10 billion for domestic programs for which the Administration requested no funds. The unrequested domestic funding includes $1.8 billion for veterans health, $2.25 billion for homeland security, $663 million for pandemic flu preparedness, $3.5 billion for agricultural disaster relief (though the agreement drops controversial small amounts for spinach growers and peanut storage), $650 million for state children's health insurance, $500 million for fire fighting, $425 million for secure rural schools, and $400 million for low-income energy assistance.

The bill also includes an increase in the minimum wage and a package of $4.8 billion over ten years of offsetting tax cuts for small businesses.