National Journal's CongressDaily
Issue date:  October 24, 2001
-=-=-=-=-=-=-=-

ECONOMY
House Heads For Partisan Vote On Stimulus Legislation
   Republican leaders made a strong pitch for their approach to
boosting the flagging economy today, but their bill faces a party
line vote later this afternoon and considerable modification in
the Senate. House Ways and Means Chairman Thomas, who crafted the
bill, defended the $100 billion measure's size and content. He
contended that in the context of a $10 trillion economy, which is
"basically well," the bill would help companies and individuals
at a crucial moment. About 40 percent of the bill would aid
individuals with extra tax rebates, accelerated income tax rate
cuts and simplification of capital gains rules. Most of the bill
would go to businesses in the form of allowing more substantial
write-offs for expenses on a short-term basis and relief from the
corporate alternative minimum tax on a retroactive basis. Thomas
noted the Bush administration has emphasized the importance of
acting quickly.
   In fact, the administration released a statement praising the
timing of the bill and some components along with criticism of
alternatives, such as the one offered by House Ways and Means
ranking member Charles Rangel, D-N.Y., which would focus more on
spending and pay for tax relief by freezing rate cuts for higher-
income people enacted earlier this year. However, the
administration statement also praised the House for simply
"starting the process" and expressed hope for Congress to act in
a "bipartisan manner." House Majority Whip DeLay shrugged off the
fact that the House and Senate will likely go to conference with
very different approaches, saying, "We'll just have to see how
the process works out." With regard to a $70 billion measure that
Senate Finance Chairman Baucus laid out Tuesday and additional
spending some senators are advocating, DeLay chided, "What they
are talking about is a spending program."
   The House floor rule, approved by party line vote of 225-199,
allows Rangel to offer an alternative and a motion to recommit.
Rangel said he was thankful that the rule allows for debate on
the Democrats' package, but he complained bitterly about what he
regarded as Thomas' refusal to commit to a bipartisan process.
Democrats condemned the bill for providing $25 billion in
refundable tax credits for corporate AMT taxes paid over the last
15 years - especially, they said, since the companies benefiting
read like a who's who of corporate influence. But the GOP
contends many of these companies are laying off workers and need
to help to prevent further payroll hemorrhages. The Blue Dog
Coalition of moderate to conservative Democrats argued that the
focus of congressional action should not be on either party's tax
and spending priorities but the immediate needs of laid-off
workers, public safety and national defense. To the extent
additional spending is required, the Blue Dogs contend these
costs should be stated honestly and offset. - by Stephen Norton
-=-=-=-=-=-=-=-

ECONOMY
White House 'Strongly' Endorses Thomas Stimulus Bill
   Scrapping reservations voiced just last week, the Bush
administration today offered a ringing endorsement of the
stimulus package authored by House Ways and Means Chairman
Thomas, which was headed for House approval this afternoon. "The
administration strongly supports House passage" of the
legislation, a statement of administration policy released by OMB
said today. Speaking today at a small business in Glen Burnie,
Md., President Bush urged the House to pass the Thomas
legislation. "And then I urge the Senate to act quickly, to make
sure that the American people understand that in this part of our
homeland defense, our country and the Congress is united," Bush
added. The president presented his tax priorities in a populist
vein. He called for accelerating tax relief for individuals and
providing rebates to low and moderate income workers. As for
business, Bush highlighted tax cuts he said would especially help
small businesses, touting proposals to eliminate the business
alternative minimum tax and allow more immediate deductions for
new investments.
   Treasury Secretary O'Neill last week drew the ire of House
conservatives - and Thomas himself - by suggesting the measure
was too large and by calling some of its provisions "show
business" provisions designed to appease various constituencies
looking for tax cuts. White House officials today were more
circumspect, talking up provisions in the bill Bush agrees with,
but nevertheless pointing out that the Thomas measure contained
proposals Bush had not suggested in his own plan. The Joint
Committee on Taxation estimated that the Thomas bill would cost
$100 billion during the current fiscal year, while Bush has
suggested the new package not exceed $75 billion. But with the
administration expressing disappointment with the far smaller tax
cut figure contained in a Senate Democratic proposal released
Tuesday, the White House may need as much in tax cuts as it can
get from the House to get a deal Bush can accept out of a future
conference.
    "The administration commends the fact that this bill is
focused primarily on tax relief, since Congress has already
adopted adequate spending measures," the OMB statement continued,
pledging that Bush would oppose "alternative measures that
contain large spending and tax increases." The statement takes
particular aim at plans for "taxes on small businesses" - an
apparent reference to language in the House Democratic
alternative that would freeze planned reductions in the top
individual tax rate, which affects many small businesses. OMB
specifically applauded provisions in the Thomas bill that would
help low-to-moderate income earners, accelerate this year's rate
cuts, increase business expensing and repeal the corporate
alternative minimum tax. - by Keith Koffler
-=-=-=-=-=-=-=-

ECONOMY
Daschle Praises Baucus Alternative To House Stimulus
   Echoing a comment made by Treasury Secretary O'Neill, Senate
Majority Leader Daschle today called the economic stimulus plan
moving through the House this afternoon "show business." Daschle
said Finance Chairman Baucus had done a "very good job"
developing an alternative package, and that he would be working
with Appropriations Chairman Byrd on the spending side of the
package, but declined to say whether appropriations would be
counted against a $60 billion to $75 billion tax cut or added on
top of it. Baucus said he planned to attend a meeting today with
Byrd and Daschle. Additionally, Finance Committee Republicans
plan to meet with Senate GOP leaders today on the stimulus plan.
   Meanwhile, Senate Majority Whip Reid told the U.S. Conference
of Mayors today that he would not let an economic stimulus
package pass Congress without job provisions. "I'm not going to
stand aside and let this program go through unless it contains
job creation," Reid said. Reid has proposed a major
transportation improvement program for the stimulus, including $5
billion for highway infrastructure improvement, $5 billion for
mass transit projects, $15 billion for Amtrak security and high
speed rail development, $1.5 billion for airport construction and
$300 million for building marine ferries and terminals. Reid
criticized the House package for containing only tax provisions,
and said while Baucus' plan contains healthcare and unemployment
benefits, it "is not the Democrats' proposal." He said Senate
Democrats would not likely finish their package this week. The
mayors have endorsed Reid's transportation proposal, and plan to
send a broader package to newly appointed Homeland Security
Director Tom Ridge Thursday.
   Also today, Senate Budget Chairman Conrad and House Budget
ranking member John Spratt, D-S.C., issued a "report card" giving
the House Ways and Means Committee's $99.5 billion stimulus
package a failing grade on each of the five principles for a
stimulus bill set out by the bipartisan chairmen and ranking
members of the Budget Committees: that it be temporary, have an
immediate impact, cost roughly $60 billion, be targeted to
individuals most likely to spend and hit hardest by the economic
downturn, and maintain fiscal discipline in the long run. In
contrast, Conrad gave the $70 billion stimulus legislation
released by Baucus a thumbs up on all counts and called it "a
constructive contribution."
   In a related development, the labor-liberal coalition that
opposed President Bush's $1.3 trillion tax cut earlier this year
today urged the president to disown the $100 billion House
economic stimulus plan - and vowed to pass a dramatically
different stimulus in the Senate. AFL-CIO President John Sweeney,
appearing at a news conference with other leaders of the Campaign
for America's Future, called the House GOP-crafted bill "a total
disgrace." Robert Greenstein of the liberal Center for Budget and
Policy Priorities said less than 5 percent of the GOP plan
consists of aid to displaced workers, and he also took aim at the
so-called expensing provision in the bill, which would allow
companies to more quickly write off business purchases. That
provision has gained bipartisan support in Congress, but
Greenstein suggested that by making it effective for three years
- rather than the one year in the Baucus plan - House Republicans
were attempting "to make this a normal part of the tax code." -
by Geoff Earle, April Fulton and Charlie Mitchell
-=-=-=-=-=-=-=-

ECONOMY
Debate Continues On Insurance For Recently Laid-Off
   Even as the House prepares to vote on the economic stimulus
plan, debate continues unabated over the best way to help the
recently laid-off keep their health insurance coverage. The House
GOP bill includes $3 billion that states can use as they wish for
expanded health insurance coverage. The House Democratic
substitute, on the other hand, would provide a one-year program
under which the federal government would subsidize 75 percent of
the premiums of so-called COBRA health insurance continuation for
those eligible. In the Senate, Finance Chairman Baucus proposed
Tuesday a 50 percent COBRA subsidy for one year, at an estimated
cost of $17 billion, as well as a $2 billion proposal to allow
states to cover those not eligible for COBRA through the Medicaid
program at an "enhanced" matching rate. (The House Democratic
proposal does not include a Medicaid element because of
jurisdictional reasons.) But Health, Education, Labor and
Pensions Chairman Kennedy said that is insufficient. In a floor
speech this morning, he called for a 75 percent COBRA subsidy, as
well as an immediate 2 percent increase in all federal Medicaid
matching payments.
   Health interest groups, meanwhile, are lining up with their
own proposals. Interestingly, consumer and business groups both
support COBRA subsidies, noting that with average family premiums
topping $7,000 annually, few of those losing their jobs can
afford to pay that amount themselves. The Healthcare Leadership
Council, which represents health industry and business groups,
wrote in a letter to President Bush earlier this month that COBRA
subsidies "would be a valuable, necessary, helping hand for
workers and their families during this difficult time."
   In a report released Monday that also calls for COBRA
subsidies, the Consumers' Union explains the allure to business.
"Subsidizing COBRA premiums would make coverage more attractive
to healthier workers," the report says. "This would expand the
pool of covered individuals and lower the average cost of health
plans for employers and insurance companies." Conservative
groups, however, have other ideas. Greg Scandlen of the National
Center for Policy Analysis said Congress should enact immediate
tax credits to help people buy their own health coverage and make
medical savings accounts - currently available only to small
businesses and the self-employed - universally available. "Rather
than having to spend $600 a month to keep their insurance intact,
laid-off workers might prefer a less expensive plan that will
cover them in case of emergencies," he wrote. The Heritage
Foundation agrees, but adds yet another idea - allow former
workers to "roll over" unspent funds in the "flexible spending
accounts" to pay their COBRA premiums. - by Julie Rovner
-=-=-=-=-=-=-=-

APPROPRIATIONS
Panel Approves Defense Spending Bill, Puts It On Hold
   The House Appropriations Committee today reported out a $317.5
billion FY02 Defense appropriations bill today, but will not file
the bill or put it on the House floor until the panel reconvenes
to decide how to handle the president's request for the second
$20 billion of the $40 billion terrorism supplemental. The
committee also must decide when to attach that supplemental
request to the Defense spending bill - and make a decision about
the effort by Appropriations ranking member David Obey, D-Wis.,
to provide even more supplemental FY02 funds for security and
homeland defense needs. In fact, the markup was delayed more than
a half hour as Speaker Hastert met with Appropriations Chairman
Young to press him to send the Defense spending bill to the floor
Thursday - but Young said he could not keep to that timetable, in
part because the committee only got the president's request for
the second $20 billion the day the House office buildings were
evacuated to test for anthrax, and has been unable to study the
request.
   But Young is also trying to work with Obey, who has the
backing of Defense Appropriations Subcommittee Chairman Jerry
Lewis, R-Calif., and ranking member John Murtha, D-Pa., in his
effort to pump billions more into the Pentagon, FBI, National
Security Agency, Customs Service and other domestic security
needs. Young said he would like to get the Defense spending bill
on the floor next week. Obey and Young also want to preserve
House appropriators' prerogatives in writing the supplemental
title rather than leave it to the Senate.
   Senate appropriators have already indicated they will add the
supplemental title to their version of the Defense spending bill
in full committee markup, while Senate Appropriations Chairman
Byrd has proposed a $20 billion homeland security and
infrastructure spending package beyond the $40 billion
supplemental. New York members of House Appropriations Committee
also voiced their concerns that New York get the full $20 billion
that President Bush promised, with Democratic Reps. Jose Serrano
and Maurice Hinchey worrying that the administration could fall
short. But Rep. James Walsh, R-N.Y., expressed his confidence
that the White House is "rock solid," although some of the total
might not come until next year. - by Lisa Caruso
-=-=-=-=-=-=-=-

APPROPRIATIONS
Some Appropriators Seek More Work For Boeing
   In a bid to boost Boeing Co., congressional appropriators are
working on a plan to add as many as 100 of the company's
commercial airliners to the Air Force's squadron of refueling
tankers, transport jets and surveillance planes, congressional
sources said today. House Defense Appropriations Subcommittee
ranking member Norman Dicks, D-Wash., a key architect of the
plan, said the measure could provide the company with a big boost
over the next decade. "We're hurting here," said Dicks, a key
Boeing ally. Meanwhile, the House Appropriations Committee this
afternoon approved a 15 percent increase in research and
development spending for Boeing and other defense contactors. The
$47.7 billion in R&D funds proposed by the committee is a $312
million increase over the amount requested by President Bush. The
bill also includes funds for the Air Force to purchase a handful
of retrofitted Boeing 767 aircraft.
   But that could be just a down payment. Dicks and other
appropriators hope to approve a measure that would allow the Air
Force to lease as many as 100 Boeing 767 airplanes over the next
decade. By leasing the planes, Dicks said, Congress would be able
to acquire nearly 100 planes without exceeding the Defense
Department's budget. Senate Appropriations ranking member Ted
Stevens, R-Alaska, also favors leasing the Boeing planes, Dicks
said.
   Boeing's congressional allies have backed a plan to equip the
U.S. military with new 767s since last month's terrorist attacks
dealt a devastating blow to the company's commercial aircraft
business. Most of the planes would be used to expand the Air
Force fleet of refueling tankers, which act as flying gas
stations for fighter jets and bombers. The B-2 bombers that drop
precision-guided bombs after departing their base in Missouri,
for example, need to refuel a half-dozen times on their journey.
Other Boeing 767 craft would be used to replace aging 707 planes
that house Northrop Grumman-produced surveillance equipment,
known as Joint Stars, or J-Stars. In an interview published in
today's Washington Post, Air Force Secretary James Roche said the
707 J-Stars are "breaking in ways we can't predict because they
are so old."
   Meanwhile, Dicks today said the Bush administration has failed
to build a solid case with the public for increasing defense
spending as the United States fights terrorism, the Associated
Press reported. Dicks said the world changed Sept. 11 and he
believes Bush is missing an opportunity to give Americans
information about the country's eroding military capabilities. "I
think most of the people that voted for George Bush thought he
was going to do something dramatic, like Ronald Reagan did, to
improve America's capabilities. Thus far, that has not happened,"
Dicks said. "I think the American people now have been shocked
into the reality that we have got to re-examine our military
capabilities." In a letter to Congress earlier this month, Bush
proposed 18.4 billion extra for defense beyond his original
proposal of a $325 billion defense budget. - by Brody Mullins
-=-=-=-=-=-=-=-

CONGRESSIONAL OPERATIONS
House Buildings Closed, But Cannon Might Soon Open
   All House office buildings remained closed this afternoon as
health officials await the results of environmental sweeps for
anthrax, according to a spokesman for House Administration
Chairman Ney. Earlier, Ney said it was possible that the Cannon
House Office Building could be reopened today, but cautioned
there were no guarantees. "There's some talk - only talk - about
Cannon," Ney said. But he noted that such a move could be
problematic. "If you open one, you have to seal off the
entrances" to other buildings, he added.
   The Senate took a step toward resuming normal operations with
the opening today of the Russell building. Senate Majority Leader
Daschle told reporters he expected the Dirksen building to open
no later than Friday, including the mailroom - which has tested
positive for anthrax exposure. Daschle said he hoped that
technicians would be able to seal off a contaminated portion of
the Hart building to allow other areas of the building to be
reopened. He said senators would be able to return to the
building to retrieve items. "We want to get back to normal as
quickly as we can," he said. Daschle gave "high marks" to the
congressional response to the incident. But, noting the deaths of
two District of Columbia Postal Service employees, he said,
"Clearly we've got to address the deficiencies that exist in this
whole system."
   Back on the House side, House Minority Leader Gephardt
indicated the Longworth House Office Building would likely take
more time to reopen as investigators pursue the possibility that
tainted mail reached that building from the Ford House Office
Building - formerly House Annex II - at the foot of Capitol Hill.
"I think Longworth, because of the tests, will take longer," he
said. Gephardt also said he wanted the families of the two
workers at the Brentwood Post Office who died of anthrax exposure
to be covered under a previously established victims'
compensation fund. "We all failed a couple of days ago when
people died in the post office," Gephardt said. A Gephardt
spokeswoman said Congress might have to pass an amendment that
would include the postal workers.
   Meanwhile, FBI Director Robert Mueller told a gathering of the
nation's mayors today that no link has been established between
the Sept. 11 hijackings and the recent anthrax attacks, the
Associated Press reported. "At this point, it is not clear if the
few confirmed anthrax exposures were motivated by organized
terrorism,'' Mueller told the U.S. Conference of Mayors. "But
these attacks were clearly meant to terrorize a country already
on the edge." He said more than 7,000 FBI personnel has been
assigned to the hijacking and anthrax investigations.
   And, in an appearance today on ABC's "Good Morning America,"
Postmaster General John Potter warned Americans there are no
guarantees the mail delivered to their homes is safe - but he
stressed that the risks to them are slim. "We're asking people to
handle mail very carefully," Potter said. "People have to be
aware of everything in their day-to-day life, and certainly, mail
in our system is threatened right now. There are no guarantees
that that mail is safe." At the White House, Press Secretary Ari
Fleischer later said, "The mail is overwhelmingly safe, but
everybody needs to be alert." - by Geoff Earle and Mark Wegner
-=-=-=-=-=-=-=-

TRADE
Zoellick Touts Administration Support For Farm Trade
   Trade Representative Zoellick today issued an affirmative
statement of the Bush administration's commitment to keeping the
American agriculture sector strong. "Opening markets for U.S.
farmers and ranchers is a top priority of our trade agenda,"
Zoellick said. Zoellick also praised as "formidable" the skills
of agriculture negotiator Allen Johnson, who accompanied Zoellick
on recent trip to Asia and is preparing for important talks on
agricultural issues at the World Trade Organization ministerial
meeting in Doha, Qatar, in November. Zoellick also stressed the
importance of renewing presidential trade negotiating authority,
although opposition to a bill offered by House Ways and Means
Chairman Thomas remains stubborn from key groups. Many Democrats,
even those who are pro-trade, contend the bill is too weak on
labor and environmental standards. Some members from textile and
agricultural states also say they are wary because previous trade
pacts have hurt their industries. Zoellick this week said the
time had come to set a date for floor consideration of the bill
and Thomas said he agrees.
   "Ultimately, Congress has the final say in determining whether
a trade agreement is good for American farmers," Zoellick said.
But he insisted that trade negotiating authority is a needed
first step, which he characterized as vital to improving "the
economic environment for agriculture." Agriculture negotiator
Johnson, stressing Bush's emphasis on opening markets for U.S.
producers, said, "We will be in constant communication with
agricultural food community and Congress throughout the
negotiating process to make sure we create significant positive
benefits for U.S. agriculture."
   In addition, Zoellick and Johnson acknowledged today that many
U.S. trade partners maintain "trade-distorting" subsidies, but
said the administration is determined to defend U.S. rights
before the WTO. Specifically, they cited success in cases
involving Canadian export subsidies of its dairy industry and
barriers to Korea's market faced by beef producers. GOP House
leaders have been looking to get the trade authority bill on the
floor since July, but have postponed the vote for a variety of
reasons - not the least of which is that they do not have the
votes. House Majority Whip DeLay acknowledged today they need
more time to shore up the votes, but said he had "no idea" how
much more time. He said trade votes are always close and said he
was not alarmed that the gap between where GOP leaders want to be
and where they are at this time. - by Stephen Norton
-=-=-=-=-=-=-=-

TRANSPORTATION
Bush Vows Push For House GOP Aviation Security Bill
   Vice President Cheney told House Majority Leader Armey and
House Majority Whip DeLay at a White House meeting Tuesday night
that he will join with them to press for passage of aviation
security legislation authored by House Transportation and
Infrastructure Chairman Young, White House officials confirmed
today. "I hope to do this [legislation] this week if we can,"
Armey said; leadership aides indicated Tuesday that a final
decision on how to move the bill had not been made, but that it
would likely go straight to the floor. White House Press
Secretary Ari Fleischer said President Bush wants the House
measure to get to conference committee, where he hopes lawmakers
will "improve" the Senate-passed aviation security bill.
Fleischer said Bush opposes the Senate measure because of
provisions putting airport security workers on the federal
payroll, and that the president remains willing to move by
executive order if he does not get a bill he likes. "He wants a
bill he can sign. He still is prepared if necessary to enact this
through an executive order if the result of the conference is not
satisfactory," Fleischer said.
   However, Bush earlier this month said he would not oppose the
Senate bill, and a spokesman for the key sponsor of the Senate
bill, Commerce Chairman Hollings, said Hollings has had no
indication that the president has changed his mind. As for House
action, the spokesman said, "All indications are that the rank
and file support the Senate's approach, and are ready and willing
to pass that bill if given the opportunity." A Young aide said
the House bill would offer the president the flexibility to
federalize workers if he chooses, and expressed hope that a floor
vote on the measure can be scheduled next week. "Trying to get a
whip count now is almost impossible," the aide said, referring to
the difficulty of coordination among members due to the closing
of the House office buildings for anthrax screening. Young, Armey
and DeLay are expected to hold a news conference Thursday in an
effort to shore up support for the bill.
   Meanwhile, House Democrats today renewed their push for a vote
on an aviation security bill that would allow for federalized
security workers. House Minority Leader Gephardt singled out
Armey and DeLay for holding up action on the bill. "Here we are
six weeks [after the Sept. 11 terrorist attacks] because of an
ideological concern of a minority of the majority," Gephardt
said. "Mr. DeLay and Mr. Armey have make it clear they don't want
this bill brought up." Gephardt said it was an "incredible
statement" for Armey to oppose federalizing airport security
workers because they might join labor unions, noting that many
are already unionized. House Transportation and Infrastructure
ranking member James Oberstar, D-Minn., who has offered his own
bill, said today that committee leadership met Tuesday evening
but reached no consensus. Oberstar said he expected floor action
soon. "We've been told that they're likely to bring something up
next week," he said. - by Keith Koffler, April Fulton and Mark
Wegner
-=-=-=-=-=-=-=-

FINANCE
Gramm: Industry's Reinsurance Proposal A 'Non-Starter'
   Senate Banking ranking member Phil Gramm, R-Texas, whose role
is key to establishing a federal reinsurance mechanism covering
future property and casualty losses due to terrorist acts, today
labeled an industry plan as a "non-starter" and took issue with
aspects of a Bush administration plan on the grounds it was not
sufficiently market-oriented. In remarks at the first of two
hearings on the topic, Gramm described the insurance industry
plan as a "government-sanctioned mutual insurance pool," which he
said was "totally alien to my thinking [and] personally, a non-
starter." At the same time, Gramm took issue with the aspect of
the White House's three-year plan requiring the federal
government to pay 80 percent of the first $20 billion in claims
in the first year. Instead, Gramm advocated setting a system in
which the industry would be 100 percent liable up to a certain
dollar threshold, at which point the federal government would
take over. That would help "put pressure" on the industry to
establish a permanent mechanism, he said. Treasury Secretary
O'Neill emphasized the administration's belief that there is a
"real and pressing need" for a mechanism to provide terrorism
insurance coverage. While saying he thought the White House plan
was the most workable, O'Neill emphasized he was open to working
with Congress on alternative approaches. Under questioning by
Gramm, O'Neill agreed the industry's "pool" idea was a non-
starter.
   Senate Banking Chairman Sarbanes, who has kept his public
comments on the insurance topic to a minimum in the days leading
up to the hearing, remained mostly noncommittal in his remarks
and questions today. Gramm made several pointed references to the
fact that the insurance issue is squarely within the Banking
Committee's jurisdiction, and took some veiled swipes at the
Senate Commerce Committee, which is claiming jurisdiction as
well. Sources said the Commerce Committee could convene a hearing
Thursday on the subject. Gramm said he believed any terrorism
insurance proposal written would become an amendment to the
Defense Production Act, which also is under the Banking
Committee's jurisdiction.
   Sen. Bill Nelson, D-Fla., who served as a state insurance
commissioner during the Hurricane Andrew crisis of 1992, also
took issue with the prospect of putting taxpayers on the hook for
the first dollar of coverage. Nelson strongly urged the Congress
to make sure the insurance industry has "skin in the game. I know
from our experience [in] Florida that the insurance industry is
more than willing to walk away from its biggest risks and then
turn them over to somebody else." Nelson also suggested the panel
look to enact a short-term fix, "no more than one year," and then
revisit the issue more deliberatively in January. Sen. Charles
Schumer, D-N.Y., took issue with that suggestion, noting that a
multi-year mechanism would be needed to provide adequate
assurance to financiers of large real estate projects. - by
Pamela Barnett
-=-=-=-=-=-=-=-

AGRICULTURE
Harkin Farm Bill Proposal Would Double Some Spending
   Senate Agriculture Chairman Harkin is considering a farm bill
proposal that would more than double federal expenditures on
marketing loans and loan deficiency payments, but there may be a
limitation on the amounts, according to documents circulating
among farm lobbyists and made available to CongressDaily.
Lobbyists who made the proposal available stressed that the
Harkin plan is still in development and it could change before he
issues it publicly, which he probably will do by the end of the
week. Democratic Senate Agriculture Committee staffers have been
working as best they can away from the Capitol due to the anthrax
scare, the lobbyists said, and have been doing financial
calculations by hand because they do not have normal access to
CBO computers.
   Harkin's proposal would extend Freedom to Farm payments, raise
all loan rates from current levels except those for oilseeds and
include a countercyclical proposal. The Freedom to Farm payments
would reflect the cost of production for different crops and
would be made for oilseeds as well as traditional program crops.
The spending on marketing loans and loan deficiency payments
would more than double from $23 billion to $49 billion. Harkin is
also studying a limitation on loan and deficiency payments based
on maximum production for each crop - rather than based on a
dollar amount. The current dollar limit is $75,000 per recipient,
and the House-passed farm bill changes that to $150,000. The
countercyclical program would be constructed crop-by-crop rather
than state-by-state and payments would be determined by the
difference between a base period of 1998-2001 and the current
year, which is similar to the program proposed last year by House
Agriculture ranking member Charles Stenholm, D-Texas. Harkin is
considering constructing the limit by figuring the top 3 to 5
percent of largest production quantity the farm has reported and
excluding production in excess of 95 to 97 percent from the
payments. Harkin also is considering a payment limitation based
on all programs from which the farmer receives money. The source
also said Harkin plans to spend $100 billion on commodity
programs over 10 years, rather than the $110 billion in the House
bill.
   Meanwhile, Bush administration officials convinced several
commodity producer groups last week to send a letter Tuesday to
Senate Majority Leader Daschle urging him to go slow with the
farm bill. But if Harkin writes a farm bill the groups like
better than the House-passed bill, at least some of them will
push for passage this year, a key farm lobbyist told
CongressDaily. The lobbyist said the farm leaders invited to the
White House last Thursday - such as producers of corn, soybean,
fresh fruits and vegetables and livestock - were those who have
expressed discontent with the House-passed farm bill. But the
lobbyist said the letter was "a bone to the administration" and
pointed out that the same groups also are advising Harkin on the
development of his bill. If the Harkin bill is better for their
members than the House bill, the groups will instead urge the
Senate to "move ahead quickly" with the farm bill. The lobbyist
also noted the White House has not said what commodity, income
support and risk management policies it would support. - by Jerry
Hagstrom
-=-=-=-=-=-=-=-

JUDICIARY
House Approves Compromise Anti-Terrorism Bill
   The House gave overwhelming approval today, 357-66, to a
compromise anti-terrorism bill giving police new power to
secretly search the homes of terrorism suspects, tap all their
phones and track their use of the Internet. Senate Majority
Leader Daschle said it is possible the Senate would pass the
anti-terrorism legislation by the end of the day Thursday, and
predicted it would pass with a "pretty overwhelming vote."
Daschle also called bioterrorism legislation one of the "key
issues" facing the Congress. He said the legislation will
coordinate the efforts of federal, state, and local authorities
and hospitals, plan a rapid response, and stockpile antibiotics.
However, there still may be a snag in the Senate. Sen. Ron Wyden,
D-Ore., has threatened to block final approval because of a
compromise that Senate negotiators made to get House approval.
The original Senate bill tinkered with a law known as the McDade
amendment after former Rep. Joseph McDade, R-Pa. whose reputation
was clouded by a lengthy racketeering case before he won
acquittal in 1996. It prevents federal prosecutors from using
investigative techniques such as wiretaps or undercover stings
that are disallowed under ethics rules enforced by state and
local bar associations but not barred by federal law. The Senate
fix would loosen those restrictions.
-=-=-=-=-=-=-=-

ENVIRONMENT
Jeffords Delays Action On Multi-Pollutant Legislation
   Senate Environment and Public Works Chairman Jeffords has
delayed action on multi-pollutant legislation by a week, the
committee announced today. The panel postponed a Thursday hearing
on the legislation until Nov. 1. A vote on the bill, originally
scheduled for Nov. 1, has not been rescheduled. The Clean Power
Act, introduced by Jeffords, would require electric utilities to
reduce the amount of harmful emissions released into the
atmosphere.
-=-=-=-=-=-=-=-

SCHEDULE
Daschle Hopes To Conclude Work By Thanksgiving
   Senate Majority Leader Daschle said today that he is "hopeful
that we can conclude all of our work by Thanksgiving," despite
the logistical problems posed by the closure of House and Senate
office buildings for much of the past week due to anthrax
screening. That target also appears to be gaining currency among
Senate Republicans, who have called off their filibuster of
appropriations bills; the filibuster had been over the issue of
confirmation of judicial nominees. "It makes some sense for us to
get our essential stuff done and get out of here," said Sen.
Wayne Allard, R-Colo., who added that once the congressional
office buildings are thoroughly cleaned, Congress can "come back
with a fresh start."
-=-=-=-=-=-=-=-

POLITICS
Former Ganske Aide To Take Post At Insurance Association
   Heather Eilers-Bowser has left her post as senior legislative
assistant with Rep. Greg Ganske, R-Iowa, to become director of
legislative affairs at the National Association of Insurance and
Financial Advisors. Eilers-Bowser previously served as a
legislative assistant to former Rep. Linda Smith, R-Wash. Eilers-
Bowser will handle issues relating to property and casualty
insurance and financial services regulation.
-=-=-=-=-=-=-=-

ATTACK UPDATE
   A Pakistani militant group said today that 22 of its fighters
were killed in a U.S. attack on Kabul - the deadliest known
strike against a group linked to Osama bin Laden since the air
campaign began Oct. 7, the Associated Press reported. U.S. jets
kept up heavy night-and-day pounding of the Afghan capital today,
with huge explosions in the direction of Taliban military sites
on the outskirts. The bombardment marked a return of U.S.
warplanes in large numbers to Kabul after three days of attacks
concentrated on Taliban front lines to the north. In Karachi,
Pakistan, Muzamal Shah, a senior official of the banned Harakat
ul-Mujahedeen, said a U.S. bomb struck a house in Kabul Tuesday
while fighters from his group were meeting there. Twenty-two of
the militants died, including several senior commanders, Shah
said. Some of the band had crossed into Afghanistan since the
U.S. bombing began to help "devise a plan for fighting against
America," Shah said. Harakat ul-Mujahedeen, or "Movement of the
Holy Warriors," is one of the largest militant organizations
fighting Indian soldiers in the disputed Kashmir region and was
declared a terrorist organization by United States years ago.
   On Tuesday, a group of men brought the bodies of 11 of the
dead Pakistani fighters to Afghanistan's border with Pakistan,
hoping to bury them in their homeland. The Pakistani border
guards refused to let them cross, according to the Taliban's
local security chief, Noor Mohammed Hanifi. "They said, 'You
wanted to fight with the Taliban, then you can bury your dead in
Afghanistan,'" Hanifi said. Today about 1,000 Afghans, including
tribal leaders, clerics and supporters of the former king
Mohammad Zaher Shah, gathered in the Pakistani border city of
Peshawar to discuss prospects for a new government.
-=-=-=-=-=-=-=-

THE FINAL WORD
   "It's the first tailgate constituent office in the country. A
couple of people said they're going to bring out a grill or a
hibatchi or something."
   - Rep. Gary Ackerman, D-N.Y., commenting today about the
office he has set up out of the back of his Dodge minivan parked
outside the Capitol's East Front.
-=-=-=-=-=-=-=-




-=-=-=-=-=-=-=-
CongressDaily is published daily, Monday through Friday, by
National Journal Group Inc. Copyright 2001 by National Journal
Inc., 1501 M St., NW, #300, Washington, D.C. 20005.
Retransmission, redistribution or reproduction of CongressDaily
is prohibited without the express, written permission of National
Journal Group Inc.

To read CongressDaily on the Web, contact 1-800-207-8001 or
njcirc@njdc.com for your username and password.

President--John Fox Sullivan, 202-739-8468 (jsullivan@njdc.com)
Publisher--Steve Hull, 202-739-8475 (shull@njdc.com)
Editor--Louis Peck, 202-739-8481 (lpeck@njdc.com)

Executive Editor--Keith White
Senior Managing Editor/A.M. Edition--Robert Ourlian
Senior Editor--Charlie Mitchell
Associate Editor--Greta Wodele
Assistant Editor--Chuck Jordan
Reporters--Pamela Barnett, Lisa Caruso, Geoff Earle, Keith
Koffler, Brody Mullins, Stephen J. Norton, Mark Wegner
Special Correspondents--Jerry Hagstrom, Julie Rovner

Subscription price: $2,497 a year. Subscription and e-mail
transmission information: 202-266-7230 (cngdaily@njdc.com).
-=-=-=-=-=-=-=-

CDENDIT