By CongressDaily staff
© National Journal Group Inc.
Monday, Oct. 29, 2007

As the legislative calendar continues to wind down and FY08 appropriations dictate more and more of the agenda, members in both chambers will be struggling to reconcile their differences on must-pass legislation, all the while tending to matters relating to children's health care, defense authorization, trade adjustment and Amtrak reauthorization, among other issues.

For weeks, Democrats have been contrasting guns vs. butter when it comes to President Bush's demands for more war funds and less domestic spending.

Now, it appears Democrats are about to take the debate to another level by sending Bush money for guns and butter at the same time.

According to high-level congressional aides, speaking on condition of anonymity, Democratic leaders are planning to put together a massive spending package encompassing the FY08 Defense, Labor-HHS, and military construction-VA appropriations bills, which represent about 70 percent of the total $955 billion discretionary budget for the fiscal year.

On top of that, Democrats are likely to include "bridge" funding in the range of $50 billion to $70 billion, for a total spending package of more than $700 billion.

That might make it politically perilous for Bush to veto the combined bill over an extra $10 billion for health, education and social welfare programs that Democrats want above his request -- around 1 percent -- and even more perilous for Republicans to stand firm with Bush and uphold a veto should he follow through.

Democratic leaders had been planning to send Bush the Labor-HHS measure on its own to highlight their differences on budget priorities, thinking they have the high ground on domestic issues after the children's health insurance debate.

At the same time, they have been getting hammered by Bush and the Republicans for holding back the Pentagon and veterans' bills, as well as for failure to complete any of the 12 FY08 bills this late in the year.

This way, Democrats would accomplish several of those objectives by sending him the lion's share of the overall budget, including war funding, the base Pentagon budget and veterans' programs, in one shot.

Bush might come out on the winning end under this scenario if he is able to convince the public and enough Republicans that Democrats are holding troops' and veterans' funds hostage in exchange for pork.

And even less clear is the fate of the remaining 30 percent or so of the budget, although there has been talk of a second package comprised of the Homeland Security, Commerce-Justice-Science and Transportation-HUD bills, all of which have been approved in both chambers.

Bush said he would veto all of those individually, but altogether they make up a package of counterterrorism, law-enforcement, infrastructure and scientific research funds that enjoy broad support.

Of the remaining bills, Democrats enjoy a veto-proof majority on the Energy and water measure, while Bush will likely sign the financial services and legislative branch measures.

Bush said he will veto the State-foreign operations bill because of an abortion policy rider, although a compromise on that front is likely.

That leaves the Agriculture and Interior-environment measures, which face veto threats over higher spending levels, although it remains to be seen how much of an appetite either side will have to fight over those smaller measures as the session drags closer to Christmas.

On the floor, senators will vote Tuesday to limit debate and approve legislation expanding funding authorization for Amtrak and other passenger rail service.

Senate Majority Leader Harry Reid, D-Nev., filed a bipartisan cloture motion Friday, signed by 17 senators.

The Amtrak bill would authorize $11.4 billion over six years for passenger rail service. OMB opposes the bill because it does not include changes the administration is seeking to Amtrak's governance or operations or changes on funding so more money is dedicated to more popular routes. OMB did not threaten to recommend a veto.

The Senate will vote this week on a new children's health insurance bill the House passed Thursday. A cloture vote is expected Wednesday, setting up a vote on passage by week's end.

It is unclear whether the State Children's Health Insurance Program bill will change during the course of the Senate debate. Any amendments would force the House to vote on it again before sending it to on to the White House.

Bush has vowed to veto it, as he did with an earlier version.

Last week's House vote on the SCHIP bill demonstrated that supporters are still short of the two-thirds majority needed to override a veto.

House leaders are preparing for a second override vote if Bush vetoes the measure. If they are unable to override, they are planning a SCHIP continuing resolution that could last until next October. The program is operating under a CR that expires Nov. 16.

The new SCHIP bill creates stronger incentives for states to focus on the poorest children and clarifies language barring benefits for illegal immigrants. It also accelerates the removal of childless adults from receiving benefits.

On the other side of the Capitol this week, the House will take up an $8.7 billion expansion of the trade adjustment assistance program, likely Thursday.

The bill would make service workers and other categories of workers eligible for TAA, boost current health and retraining benefits, and provide tax incentives to invest in communities distressed by trade.

The TAA expansion bill from Ways and Means Chairman Charles Rangel, D-N.Y., is opposed by many Republicans and the Bush administration, who charge that it expands the dole and impinges on states' prerogative to set eligibility requirements for unemployment benefits.

But the bill is expected to pass with plenty of support from Democrats and Republicans from districts where workers have been buffeted by imports.

The House will also take up a small-business measure and a hard-rock mining reform bill that would impose for the first time royalty payments for minerals taken from federal lands.

The Senate meets today at 3 p.m. for morning business. Afterward, the chamber resumes consideration of the Amtrak reauthorization bill.

The House meets today at 12:30 p.m. for morning hour and 2 p.m. to consider suspension bills. Votes are postponed until 6:30 p.m. On Tuesday the House meets at 9 a.m. for morning hour and 10 a.m. for legislative business. On Wednesday and Thursday, the House meets at 10 a.m. The chamber will consider suspension bills, a small business contracting bill, a hard rock mining measure and the trade adjustment assistance measure. On Friday, no votes are expected.

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