	Most Recent Developments

On October 29, House and Senate appropriators announced a conference agreement, H.Rept.108-337 , on H.R. 3289 , a bill providing supplemental appropriations for militaryoperations and for reconstruction assistance in Iraq and Afghanistan. The House approved the billby a vote of 298-121 on October 31, and the Senate approved it by voice vote on November 3. 108-106 , on November 6. The conference agreement rejecteda Senate proposal to provide about half of the Iraq reconstruction assistance as loans. Overview

In a nationwide address on September 7, 2003, the President announced that he would requestan additional $87 billion for reconstruction assistance to Iraq and Afghanistan and for ongoingmilitary operations there and elsewhere. (1) OnSeptember 17, the White House submitted a formalrequest for the funds to Congress. The major issue in Congress was whether to provide Iraq reconstruction funds as grants, as the Administration proposed, or as loans. The request did notaddress ongoing military costs after FY2004. Floor action began on October 15. The President signed the bill into law, P.L. On other key issues, the conference agreement 
provides $500 million for the Federal Emergency Management Agency (FEMA) for disaster relief for Hurricane Isabel and the California wildfires, which was not in eitherchamber's bill;
eliminates a House provision requiring that Iraq reconstruction aid be coordinated by an official subject to Senate confirmation - the conference also rejected by a vote of14-15 an alternative proposal by Senator Byrd to require Senate confirmation of the director of theIraq Coalition Provisional Authority;
cuts the Administration request for the Iraq Relief and Reconstruction account by $1.655 billion as in the House bill rather than by $1.855 million as in the Senate bill. Theconference, however, further directs that $210 million of Iraq funding be transferred for aid toJordan, Liberia, and Sudan, leaving resources for Iraq $1.865 billion less thanrequested;
agrees, as in the House bill, to provide about $1.2 billion for Afghan reconstruction, $400 million more than the Administration requested and the Senateprovided;
provides $245 million for assessed costs of U.N. peacekeeping in Liberia, as in the House bill, and earmarks a total of $200 million for Liberian relief aid and $10 million forSudan humanitarian assistance rather than $200 million in the Senate bill and $100 million in theHouse measure; 
provides $200 million in economic aid to Pakistan, as in the House bill;
includes a modified version of a Senate measure to provide health insurance through the DOD TRICARE program to non-active duty reservists who do not have access toemployer-provided health insurance; the conference report presents this and other reserve health caremeasures as a one-year trial through FY2004 and requires that DOD report on its cost andimplementation;
rejects a Senate provision to increase Army end-strength by 10,000 active duty personnel for assignment to peacekeeping types of duties; 
provides $313 million in defense operation and maintenance and in procurement funds to repair Hurricane Isabel damage at military facilities, $100 million less than inthe House bill, and provides another $130 million in military constructions funds for disaster repair,as in the House bill; 
provides $100 million in a general provision that was not in either chamber's bill for munitions security and destruction in Iraq; 
moves $858 million from the defense part of the bill to the foreign operations part to cover operating expenses of the Coalition Provisional Authority in Iraq, as in the House bill;
provides $3 billion in general transfer authority to the Secretary of Defense with a requirement that Congress be notified promptly but not that Congress provide advanceapproval as in the House bill and rejects the Senate provision that would provide $5 billion in suchtransfer authority and an additional $2.5 billion subject to congressional approval;and
rejects a Senate provision to provide $1.3 billion for veterans health benefits, as in the Senate bill; Senator Stevens said that the funding would be addressed in the pendingVA-HUD-independent agencies appropriations bill. assistance.
In a nationwide address on September 7, 2003, the President announced that he would request an additional $87 billion for ongoing military operations and for reconstruction assistance in Iraq,Afghanistan, and elsewhere. On September 17, the White House submitted a formal request forFY2004 supplemental appropriations of that amount to Congress. Administration officials said theywould like to see congressional action completed some time before October 24, when aninternational donors conference was scheduled to meet in Madrid to seek pledges of economicassistance for Iraq.
On October 29, House and Senate appropriators announced a conference agreement, on H.R. 3289 , a bill providing supplemental appropriations for military operations and forreconstruction assistance in Iraq and Afghanistan. The House approved the conference agreementby a vote of 298-121 on October 31, and the Senate approved the measure by voice vote onNovember 3. The President signed the bill into law, P.L. 108-106 , on November 6.
The key issue in Congress was whether to provide reconstruction assistance to Iraq entirely as grants or partly as loans. The conference committee rejected a Senate proposal to provide about halfof the Iraq reconstruction assistance as loans. On other issues, conferees eliminated a Senateprovision adding 10,000 troops to the Army for peacekeeping duties; agreed to a modified versionof a Senate provision to provide health insurance through the DOD TRICARE program fornon-activated military reservists not eligible for employer-provided health insurance; cut theAdministration request for reconstruction assistance to Iraq by $1.655 billion as in the House billrather than by $1.855 million as in the Senate bill; agreed to provide $400 million more forAfghanistan than the Administration requested, as in the House bill; agreed to provided $245 millionfor assessed costs of U.N. peacekeeping in Liberia, as in the House bill; agreed to provide anadditional $100 million for Liberia and $10 million for Sudan for humanitarian assistance;eliminated a House provision to require that Iraq reconstruction be coordinated by aSenate-confirmed official; and did not include $1.3 billion for veterans health benefits that was inthe Senate bill (which may be provided instead in the pending VA-HUD-independent agenciesappropriations bill). The conference agreement also provides $500 million for the FederalEmergency Management Agency (FEMA) for disaster relief for Hurricane Isabel and the Californiawildfires.
In earlier floor action, Congress rejected proposals to roll back tax cuts to pay for the bill; to shift funds from Iraq reconstruction to domestic programs; to make release of funds conditional onspecific requirements; and to transfer control of Iraq reconstruction from the Defense Departmentto the State Department.