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Democrats to Put New Spending Projects on Hold

No money will be available for most new federal contracts during the current fiscal year because Congress failed to pass appropriations bills.

This year Congress approved only two of 11 spending bills for fiscal 2007, those for the Defense and Homeland Security departments. Rather than considering the remaining bills, the incoming Democratic chairmen of the House and Senate appropriations committees said they plan to hold most 2007 funding at 2006 levels through the end of the fiscal year on Sept. 30.

Rep. David Obey of Wisconsin, who will chair the House committee, and West Virginia Senator Robert Byrd, the incoming Senate Appropriations chairman, said agencies may appeal for additional funds to meet urgent needs.

For example, the Veterans Administration needs more money to keep its health care programs running, the Energy Department has threatened layoffs and the Social Security Administration has said it would be forced to furlough workers under current spending limits.

The incoming chairmen said they will drop all earmarks – pet projects of individual Congress members – from the 2007 spending resolution, saving about $8 billion that could be used for other purposes.

But most new projects planned by agencies for 2007 would be put on hold.

“Unfortunately, there are no good options available to us to complete the unfinished work of the Republican Congress,” Obey and Byrd said in a joint statement Dec. 11. “…While the results will be far from ideal, this path provides the best way to dispose of the unfinished business quickly, and allow governors, state and local officials, and families to finally plan for the coming year with some knowledge of what the federal government is funding.”

They pointed out that President Bush’s 2008 budget will be sent to Congress in February, at about the same time the current temporary funding authorization expires. In addition, Congress will consider additional appropriations for the wars in Iraq and Afghanistan.

“It is important that we clear the decks quickly so that we can get to work on the American people’s priorities, the president’s anticipated war funding request, and a new budget,” the incoming chairmen said.

The Bush administration called the Democrats’ plans “disappointing.” But OMB Director Rob Portman said the administration “will certainly work with the agencies and the Congress to ensure there are no major disruptions to essential government services.”


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