National Journal's CongressDaily
Issue date:  October 25, 2001
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ECONOMY
Senate Republicans To Embrace Bush's Stimulus Plan
   Senate Republicans will step into the economic stimulus debate
by backing President Bush's proposals but bypassing the plan
authored by House Republicans as well as proposals by Senate
Finance Chairman Baucus and other Senate Democrats. Sources said
ideas Bush outlined three weeks ago could be put into legislative
language as early as this week. These include corporate
alternative minimum tax relief, accelerated income tax rate cuts,
rebates for low-to middle-income workers, expanded health and
unemployment benefits and more generous write offs for business
investments. Senate GOP sources said the meeting of Senate
Republican leadership and administration officials was called so
Finance Committee Republicans could clarify the details of the
president's proposal in order to produce legislation the entire
GOP Conference can rally around. "What is most likely to unite
Senate Republicans," one source said, "is something akin to what
the president proposed. But ultimately we've got to write
something here."
   After meeting in Minority Leader Lott's office with key GOP
ranking members, Treasury Secretary O'Neill and White House
Director of Legislative Affairs Nicholas Calio, Sen. Orrin Hatch,
R-Utah, said, "Show me that any one of the four points the
president recommended would not stimulate the economy and show me
how anything the Democrats are recommending would stimulate the
economy." Hatch contended that the spending many Democrats want
to see would be "destimulative." Senate Appropriations Chairman
Byrd and Majority Whip Reid have proposed a $20 billion package
of homeland security and infrastructure spending that could serve
as the spending component of their stimulus bill. Sen. Phil
Gramm, R-Texas, predicted the public would reject the "piracy"
inherent in Democratic spending plans, in contrast to Bush's
simple call for a limited economic boost.
   Gramm said Bush already has compromised by allowing up to 25
percent of the stimulus to be allotted to spending. "That was for
the Democrats just for being there. That is the price they are
going to charge," Gramm said. But he and Hatch said the time had
come to draw a line. "There has got to be some give on their part
too," Hatch said. Senate Finance ranking member Charles Grassley,
R-Iowa, added that Bush's agreement to accept an additional
rebate was also a concession to Democrats. Grassley said his GOP
colleagues still want him to work with Majority Leader Daschle in
crafting a bipartisan agreement, but time is of the essence,
according to a letter by IRS Commissioner Charles Rossotti to
Grassley. Rossotti said Congress would need to act by Nov. 1 to
get additional rebate checks out and make other adjustments to
tax documents by the end of the year. - by Stephen Norton and
Lisa Caruso
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TRANSPORTATION
House To Vote On Aviation Security Measure Next Week
   Bolstered by a letter of support that President Bush sent to
Speaker Hastert today, House GOP leaders scheduled a vote on
their version of an aviation security bill for next Wednesday.
"This is later than we should have been to get this bill on the
floor," said Majority Leader Armey, adding that it is a "shame a
fight has to be made." The major point of dissent is over whether
to make most airport security officials federal workers, as the
Senate bill does, or merely increase government standards and
supervision while letting the president decide whether to
federalize workers, as Bush and House Republicans prefer. In the
letter, Bush criticized proposals to federalize workers but
stopped short of saying he would veto the bill, saying, "Such an
inflexible, one-size-fits all requirement fails to permit
security tailored to the very different circumstances that exist
at airports across the country." Transportation Secretary Mineta,
appearing with GOP leaders to endorse their approach, said today
there is "nothing wrong with a low bid, as long as you have high
standards."
   When asked why a vote has taken so long, since the Senate
passed its bill 100-0 two weeks ago, House Republicans blamed
Democrats. "We're sorry we haven't been able to reach [an]
agreement with the Democrats on it and we're sorry the issue has
to be politicized," said Transportation and Infrastructure
Aviation Subcommittee Chairman John Mica, R-Fla., who wrote the
House GOP bill with Transportation and Infrastructure Chairman
Young. But Majority Whip DeLay told reporters earlier this month
the House would not schedule a vote on the bill until it had the
votes.
   House Democrats have proposed a bill of their own that would
federalize workers, and say the U.S. public supports the idea.
"We're hopeful it will come up next week . and we'll have a good,
sensible alternative," Minority Leader Gephardt said. Gephardt
said he expects Democrats will have an opportunity to offer their
alternative. "The speaker has been very positive and
encouraging," he said. "My belief is that if we sent [Bush] a
reasonable bill that has bipartisan support that he would sign
the bill."
   Meanwhile, Transportation Department officials are attempting
to reassure the public that they are taking steps to improve
security in the interim, even as news organizations reported
today that a man accidentally took a gun on a plane in his
briefcase. FAA Administrator Jane Garvey told the U.S. Conference
of Mayors - which supports full federalization of airport
security - that the administration is considering issuing "smart
cards" to identify passengers who do not pose a risk, has
deployed more sky marshals, and has freed up some funds airports
could use for security operations temporarily that would
ordinarily go toward airport infrastructure improvements. The
government also intends to be able to screen all luggage and
cargo by 2004, Garvey said, which some mayors said was not soon
enough. Garvey said she was "confident in the final analysis that
all sides will be willing to compromise." - by April Fulton and
Mark Wegner
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OUTLOOK
Appropriations To Dominate Next Week's Floor Schedule
   After the Senate votes on anti-terrorism legislation today, it
is scheduled to take up the FY02 Agriculture appropriations bill.
Senate Majority Leader Daschle said he would focus on
appropriations bills next week, with the District of Columbia and
Labor-HHS appropriations bills slated to come up next. He said he
then would devote more attention to an economic stimulus package.
Daschle said he and other key Democrats have not decided whether
to move stimulus items in one bill or more than one bill. He said
Appropriations Chairman Byrd had assembled an "excellent" package
of spending proposals that he said met his key criteria of
producing an immediate stimulative effect. Meanwhile, the House
will reconvene next week Tuesday with votes on suspension bills
scheduled for after 6 p.m. A spokesman for House Majority Leader
Armey said the House is scheduled to take up airline security
legislation Wednesday (see related story above.). House members
also face votes next week on the FY02 Defense appropriations bill
and conference reports for the FY02 Treasury-Postal and
Legislative Branch appropriations bills, in addition to any other
available conference reports for spending bills. No Friday votes
next week are expected.
   Technicians today continued to sweep congressional office
buildings for anthrax after a location near the freight elevator
on the Hart Senate Office Building's first floor testified
positive for anthrax exposure. Daschle called the new discovery
"troubling" because it is not known what the connection is
between Daschle's office suite on the fifth and sixth floors -
where an anthrax-tainted letter was received last week - and the
freight elevator. One possibility is that the elevator was used
to deliver the contaminated letter to Daschle's office.
Nevertheless, Daschle emphasized that only a "trace" of anthrax
was discovered at the elevator, and said further cleanup efforts
could allow more facilities to open soon.
   Technicians undertook remediation efforts using a foam to
eliminate anthrax from the Senate Dirksen building mailroom
Wednesday. Daschle said that if tests on the building turn out
negative, it would be open Friday. He also said efforts were
under way to seal off the 13 offices in the Hart building's
southeast quadrant to allow senators and staff in other areas of
the Hart building to return to work. "I am very confident that we
will be able to seal it in a way that will provide us complete
confidence that we can access the rest of the building without
any hazardous exposure," he said. Daschle also vowed that once a
new system is set up, "there will not be one piece of mail that
will come on the Hill without an adequate test." He noted that
senators receive thousands of pieces of mail each week, and that
it is a vital way to communicate with constituents.
   Daschle was guarded in his response to reports that the type
of anthrax used in the attack in his office is highly
sophisticated, and likely derives from facilities either in the
United States, the former Soviet Union, or Iraq. "I've been told
that this is a common variety of anthrax," he said, adding that
it may be a little more "aerosolable" than usual. Daschle
emphasized that the anthrax used responds to treatment with
antibiotics. Daschle said he would try to strike a balance in the
response to current or future attacks, saying it is neither
healthy nor helpful to "exacerbate the paranoia or fear." He said
a group of government health officials had responded prudently to
the incident. "Have they done it perfectly? The answer, of
course, is no," he said. - by Geoff Earle and Mark Wegner
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HEALTH
House Democrats Want $7 Billion To Fight Bioterrorism
   House Democrats today unveiled a $7 billion package to fight
bioterrorism, including far more funding for state and local
preparedness than the Bush administration has proposed. "Cities,
towns and counties on the front line in this fight should have
the resources to reduce the threat from biological terror," said
Minority Leader Gephardt, who was flanked by more than a dozen
members of the Democratic Homeland Security Task Force that
drafted the measure, which was led by House Democratic Caucus
Vice Chairman Robert Menendez of New Jersey. The bill would
provide at least $2 billion directly to state and local agencies
to beef up their ability to plan for and respond to potential
attacks, compared to $175 million proposed by the administration.
   The Democrats' bill would also authorize funds to boost the
amount of drugs and vaccines in the national pharmaceutical
stockpile, to increase protections for the nation's food and
water supply, and to increase the ability of the military and
intelligence community to address bioterrorism. Gephardt said he
hoped the measure would become a bipartisan one - Democrats
talked about it in general terms with Bush administration
Homeland Security Director Tom Ridge Wednesday, he said, but
added, "We thought the first thing to do was to get our own heads
together."
   Meanwhile, negotiations are continuing in the Senate Health,
Education, Labor and Pensions Committee over a bipartisan
bioterrorism bill. A spokesman for Health, Education, Labor and
Pensions Chairman Kennedy said he has reduced his funding
proposal from $10 billion to "around $6 billion," but that
remains too high for most Republicans. "The number is still the
big sticking point," said an aide to HELP ranking member Judd
Gregg, R-N.H. Gregg's spokeswoman said the policy part of the
measure is starting to come together, and that it will consist of
three major sections. One will address food safety issues, a
second will provide more authority for HHS, and the last will
provide new incentives for drug companies to develop drugs and
vaccines to combat bioterrorism agents.
   Also, Senate Majority Leader Daschle said at his news
conference today he would support a bioterrorism bill that
focused on three elements - creating as many new vaccines as
possible, improving the government's ability to respond to
bioterrorism threats and the agricultural "aspects" of
bioterrorism. A Daschle aide later said Daschle's agro-terrorism
priorities are increasing food inspection, increasing security at
USDA labs and other facilities and improving the government's
ability to trace tainted food back to the source of
contamination. The aide said Daschle is working with Sen. Pat
Roberts, R-Kan., to incorporate elements of the agro-terrorism
bill that Roberts has introduced with legislation being developed
by Kennedy and Sens. Bill Frist, R-Tenn., Hillary Rodham Clinton,
D-N.Y., and Richard Durbin, D-Ill. Durbin this afternoon said he
intends to offer an amendment to the Kennedy-Frist bill that
would require food manufacturers to register with the FDA, give
the FDA authority to inspect food plant companies' records, grant
USDA and FDA mandatory recall authority, and give the FDA the
authority to detain contaminated food, a power USDA already has.
Durbin would also place further controls on imported foods and
require imported foods to be labeled to indicate country of
origin. - by Julie Rovner and Jerry Hagstrom
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FINANCE
Insurance Industry Pleads For A Reinsurance 'Backstop'
   Private sector and financial industry officials came on bended
knee before the Senate Banking Committee today, making a case for
the creation of a "two to three year" federal terrorism
reinsurance "backstop," which they described as being pivotal to
preventing a disastrous ripple effect in the U.S. economy.
Several committee members in turn took pains to compliment the
insurance industry for stepping up to the plate and agreeing to
promptly paying claims associated with the Sept. 11 terrorist
attacks. Today's hearing marked the second day of testimony taken
by the Senate Banking panel, which is attempting to reach
consensus on a short-term mechanism that will help the insurance
industry and its commercial clients transition to the realities
of property and casualty coverage in the post-Sept. 11
environment.
   Senate Banking ranking member Phil Gramm, R-Texas, who drew
considerable attention at Wednesday's hearing by criticizing
aspects both of an industry and White House plan as not being
sufficiently market-oriented, made remarks today which were less
rhetorically combative. "I don't expect any insurance company to
put its capital at risk on a proposition that has no hope of
being a success," Gramm said. He and other senators, including
Sen. Christopher Dodd, D-Conn., warmly praised the insurance
industry for their response to the Sept. 11 attacks. As for the
mechanics of the backstop, Gramm said he was leaning towards a
modified version of the White House's three-year proposal.
However, Gramm said he would prefer a two-year program that
effectively started with the terms contained in the second year
of the White House plan.
   Gramm also suggested that the mechanism kick in for acts of
terrorism as defined "not by the media," but by the attorney
general, Treasury secretary and Federal Reserve chairman.
Further, Gramm emphasized his desire to ensure that the federal
government is not the "first dollar payer." Overall, Gramm said
the White House plan was a "good start," and proposed that with
time running so short in the session, Congress use it as the
base.
   Insurance, reinsurance and banking industry officials said
they preferred two to three years, given the multi-year nature of
most large-scale construction projects. Some of the bluntest
testimony was delivered by Thomas Donohue, president and CEO of
the U.S. Chamber of Commerce. Donohue said federal assistance for
the industry was inevitable to counter the economic impact
associated with the lack of or prohibitively priced insurance
coverage. He quipped, "You can cover me now or you can cover me
later." Donohue emphasized his desire to see a mechanism that
"keeps [the private sector] up to their necks without letting
them go under." Leslie (Bud) Baker, chairman of Wachovia Corp.,
one of the five largest commercial real estate lenders, offered a
banker's perspective. "Only the federal government can provide
the insurance industry the breathing room it needs," he said.
Robert Vagley of the American Insurance Association emphasized:
"It's not a bail out.The primary beneficiaries of such
legislation are our customers and the U.S. economy." Baker said:
"No insurance, no lending, no lending, no economy. We need your
help." - by Pamela Barnett
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APPROPRIATIONS
House Unanimously Passes CR To Last Through Nov. 16
   The House today unanimously approved its fourth FY02
continuing resolution, 419-0, to extend federal government
funding at FY01 levels through Nov. 16, when Congress is
scheduled to recess for the weeklong Thanksgiving break. Although
just two FY02 spending bills - Interior and Military Construction
- have been conferenced and sent to the president, a House
Appropriations Committee spokesman said the panel is optimistic
that the remaining 11 could be finalized before this continuing
resolution runs out. A conference committee on the Treasury-
Postal spending bill is scheduled to meet this afternoon while
the Energy and Water appropriations conference is for next
Tuesday; the VA-HUD spending bill conference also expected
sometime next week.
   The House has one more FY02 appropriations bill yet to approve
- the $317.5 billion Defense spending bill that was reported out
of committee Wednesday. But it will not be filed until sometime
next week so the committee can write a separate title that
Appropriations Chairman Young hopes to attach to the Defense
spending bill which would allocate the second $20 billion in
emergency supplemental funds Congress appropriated last month in
response to the Sept. 11 terrorist attacks.
   While Appropriations ranking member David Obey, D-Wis., has
called for adding tens of billions more to the bill to further
fund defense and homeland security needs, Young remained
noncommittal about whether he agrees with Obey that more money
should be appropriated now. "Whatever's needed, whenever it's
needed, will be provided," Young told reporters. He noted that,
at present, the president and GOP leaders are not inclined to
spend more than the $40 billion already appropriated for the
remainder of this session of Congress - although most have
acknowledged the president will likely have to request another
FY02 supplemental early next year.
   Also today, Senate Budget ranking member Pete Domenici, R-
N.M., introduced legislation to amend the FY02 budget resolution
and budget law to raise the statutory cap on FY02 discretionary
spending to $686 billion in budget authority and $707 billion in
outlays. The legislation, which is needed to avert a 60-vote
point of order against legislation that exceeds the cap, brings
the FY02 spending ceiling in line with the figure negotiated last
month by the White House and congressional appropriators.
Domenici's bill, which has the administration's support, would
also reset the so-called pay-go scorecard back to zero, requiring
any additional mandatory spending or tax cuts to either be offset
or declared an emergency. - by Lisa Caruso
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DEFENSE
Dems Push For Homeland Post, Despite Bush's Protests
   Two key Democrats will not give up a drive to enact
legislation creating a Cabinet-level Homeland Security Department
despite a direct plea from President Bush. "I'm going to continue
to push here," said Rep. Jane Harman, D-Calif., who has emerged
as a key player on the issue. Senate Governmental Affairs
Chairman Lieberman also has pledged to continue pushing the bill,
sources said. "Whether we can enact a law before November isn't
clear, but we can start the process," Harman said. The Democrats'
resistance comes as White House Homeland Security Director Tom
Ridge signaled today a willingness to accept legislation after he
has a chance to settle into the new role, and said he would be
"very open minded" to legislation at a later date. But added,
"Right now, I don't believe I need statutory authority to do what
the president has asked me to do."
   On Wednesday, a bipartisan group of senators and House members
began working to merge a handful of related homeland security
measures into a single bill. Lieberman convened a closed-door
session in the Capitol and said he would not back off the effort.
Later that day, President Bush hosted the top Democrats and
Republicans on congressional Intelligence, Armed Services and
Government Affairs committees to give a status report on the
administration's efforts to fight terrorism. He also asked
Congress to hold off on legislation in order to give the White
House more time to set up its Office of Homeland Security. After
the meeting, one key member - Senate Intelligence Chairman Graham
- agreed to back off. "When the president of the United States
has a position on that . it has influence," Graham said.
   Separately, the U.S. Conference of Mayors today endorsed a
plan to make the Homeland Security Office a full-fledged Cabinet-
level position, with budgetary authority and direct control over
a slew of federal agencies involved in anti-terrorism efforts.
During a conference today in Washington, the mayors also called
on Ridge to create a permanent commission of mayors and local
officials to advise the White House on ways to improve
coordination on anti-terrorism efforts. "We strongly support
giving this office all the authority and funding that it needs,"
New Orleans Mayor Marc Morial said. Ridge, speaking at the
mayor's conference, said he has all the power he needs for now,
saying, "I certainly have access . I know I have the authority."
- by Brody Mullins
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POLITICS
Senate Passes Legislation Giving Police Expanded Powers
   The Senate this afternoon sent President Bush legislation, by
a 98-1 vote, giving police new and expanded powers to track,
punish and detain suspected terrorists. The House passed it with
overwhelming support Wednesday and Bush is expected to sign it
before the end of the week. The legislation, somewhat weakened
from what Attorney General Ashcroft proposed, expands the FBI's
wiretapping and electronic surveillance authority and imposes
stronger penalties for harboring or financing terrorists. It also
redefines what terrorist acts are and increases the punishment
for them.
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POLITICS
Hastert Warns Patronage Appointees Should Not Run Lincoln Library
   House Speaker Hastert warned Wednesday that the $115 million
Abraham Lincoln Library and Museum in Springfield, Ill., should
not be run by patronage appointees from outgoing GOP Gov. George
Ryan's administration, the Chicago Tribune reported. Although
Hastert did not name names, his rebuke was clearly aimed at the
governor and Ryan's chief of staff Robert Newtson. Ryan has said
Newtson is "eminently qualified" to become the library's
director, even as the governor picked a panel to conduct a
nationwide search to fill the post. Hastert has been perplexed by
the political controversy Ryan has created over the library
director's post, particularly since he came to the governor's
defense in a dispute over the library last year with GOP Sen.
Peter Fitzgerald. Fitzgerald raised the possibility that Ryan
would steer up to $50 million in federal construction funds for
the project to cronies and attempted a filibuster to force the
Senate to demand safeguards to prevent that from happening. The
filibuster failed, but Hastert accused Fitzgerald of "political
grandstanding" and making unfair personal attacks on Ryan's
integrity.
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POLITICS
Largent To Submit A Letter Of Resignation Friday
   Rep. Steve Largent, R-Okla., will submit a letter of
resignation Friday, but it will not take effect until Feb. 12 so
voters in his Tulsa-based 1st District can choose a successor
without losing representation, The Daily Oklahoman reported.
Largent, who had already announced his intent to resign Nov. 29
so he can focus on his race for governor next year, was able to
do so after the Oklahoma Legislature rushed through a change that
enables a special election to be held before he actually resigns.
Largent hopes to succeed GOP Gov. Frank Keating, whose wife Cathy
is among the candidates seeking Largent's seat. The bill approved
Tuesday and signed into law by Lt. Gov. Mary Fallin Wednesday
sets the primary election for Dec. 11, with a runoff - if needed
- on Jan. 8, and the special election Feb. 12. If no runoff is
needed, then the special election would be held Jan. 8. Besides
Keating, Republican state Rep. John Sullivan and state Sen. Scott
Pruitt are seeking the seat, while former Tulsa School Board
member Doug Dodd seeks the Democratic nomination.
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ATTACK UPDATE
   U.S. jets bombed the front lines north of Kabul today, setting
off huge fireballs and columns of black smoke near Taliban
positions, the Associated Press reported. Some opposition
commanders urged America to send in ground troops to quickly
liquidate the Taliban. At the Islamic militia's southern
stronghold of Kandahar, U.S. strikes hit a bus near the city
gates and at least 10 civilians were killed in a fiery explosion,
the Taliban and residents said. But the claim could not be
independently verified. For a fifth straight day, U.S. jets
roared over the front line about 30 miles north of the capital
city of Kabul, swooping down and dropping bombs on Taliban
positions on the Shomali Plain. The pattern of attacks suggested
the United States was trying to push the Taliban back from the
opposition-controlled Bagram airport so the Northern Alliance can
use the airfield.
   Meanwhile, in New York, the Secret Service is investigating
two vials containing salmonella that were sent to former
President Clinton's office in Harlem. A Secret Service spokesman
said 15 vials containing an unknown substance were in a package
received at Clinton's office in early October with certain
writings were included in the package, but he did not elaborate.
Clinton did not handle the package and nobody has gotten sick
from it. Also, an employee at a State Department mail facility in
Virginia has been hospitalized with anthrax, it was announced
this afternoon.
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THE FINAL WORD
   "I liked it better when Mr. Obey was against the bill, because
he didn't talk so long."
   - House Defense Appropriations Subcommittee ranking member
John Murtha, D-Pa., commenting Wednesday on the unusual - and
lengthy - opening statement by Appropriations ranking member
David Obey, D-Wis., in support of the FY02 Defense spending bill.
Obey usually votes against the annual Defense spending measure.



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