	Most Recent Developments

On August 13, President Bush announced that he would not utilize $5.1 billion of contingentemergency spending Congress had provided as part of a $28.9 billion FY2002 SupplementalAppropriation ( P.L. The funding designated as contingent emergency spending was either not requested by the President or reflected higher levels for certain programs than in the Administration's request. 107-206 , the President had 30 days after enactment (September 1) to decidewhether to designate all or none of the $5.1 billion as emergency funding. Funds that willnot be used include about $500 million for DOD funding, $275 million for veterans' medical care,and about $700 million for foreign assistance including $250 million in aid for Israel and thePalestinians, and $200 million in HIV/AIDS funding. White House officials said, however, that theAdministration would seek about $1 billion of the $5.1 billion as an amended FY2003 appropriationrequest, including funds for Israel, the Palestinians, international HIV/AIDS, and theTransportation Security Agency. 4775 as passed by the House and Senate, H.Rept.107-480 , S.Rept. b Includes Administration request of $1.3 billion for Pell grants in its February 2002 budgetsubmission. b Excludes mandatory $1.1 billion in funding for additional disability payments for veteransthat theAdministration requested on May 21 and the Senate, and the conference included in its bill.Includes non-emergency spending offset by rescissions and offsets and spending that does notrelate to combating terrorism (see other). 107-593 . Although there was broad support for defense requests, particularly now, last year Congresssignificantly adjusted both the total amount as well as the types of spending requested by theAdministration in the first supplemental's defense request. (16)
On July 18, the House and Senate reached agreement on a spending compromise of $28.9 billion that was developed by House appropriators. The Senate passed the bill the following day and thePresident signed the bill on August 2 ( P.L. 107-206 ). Generally splitting the difference between the two houses, the conference version of the bill includes thefollowing spending levels:
$14.5 billion for the Department of Defense ($500 million above the request);
$6.7 billion for homeland security ($1 billion to $2 billion above the request)with 
$3.85 billion for the Transportation Security Administration ($550 millionbelow the request);
$201 million for first responders;
$175 million for grants to fire departments;
$100 million for emergency FEMA grants;
$175 million for the FBI. about $24 billion where Congress adopts the same emergency designation as in the President's request;
about $5.1 billion that Congress designates as "contingent emergency" spending where the President has the choice of designating all or none of that funding as anemergency. On May 22, 23, and 24, the House debated H.R. And both houses added funds for assistance to Israel. 107-38 enacted last year and the new supplemental. In FY2003, DOD is requesting an additional $20.1 billionto continue the "global war on terrorism." (87)
Combining the request for $5.5 billion for aid to New York in the FY2002 emergency supplemental with $5 billion in business tax credits for Lower Manhattan passed by the House inearly March, and funding already provided in the ETR, the Administration contends that New YorkCity would receive a total of $21.5 billion. House Action on the Administration's New York City Request.
On March 21, 2002, President Bush requested $27.1 billion in emergency supplemental funding to continue the war on terrorism and provide additional assistance for New York City and aviationsecurity as well as other homeland security needs. With the $1.3 billion FY2002 supplementalrequest for Pell grants in the President's February budget, the Administration's request was $28.4billion.
Although there was broad congressional support for the new supplemental, Congress debated the total spending level, the amount for homeland security, and inclusion of budget ceilings forFY2003, as well as other issues from the time that the bill was submitted in the spring to its finalpassage in late July.
Resolving differences between the two houses and between Congress and the Administration proved to be difficult. The initial draft conference version developed by the appropriators wasrejected by the White House. A compromise package designed by Senate appropriators was thenrejected by the House. House appropriators then put together a final $28.9 billion spending packagethat was acceptable to both houses and the Administration.
That package, the conference version of H.R. 4775 ( H.Rept. 107-593 ), passed the House by 397 to 32 on July 23, and the Senate by 92 to 7 on July 24, 2002. The President signed the bill on August2, 2002 ( P.L. 107-206 ). As cleared by both houses, the bill includes $14.5 billion for DOD, $6.7billion for homeland security, $5.5 billion for assistance to New York, $2.1 billion for foreignassistance and embassy security, $1 billion for Pell grants, and $400 million for electionadministration reform.
As enacted, P.L. 107-206 includes $25 billion in emergency spending and $5.1 billion in contingent emergency spending. The President had thirty days after enactment (September 1) todecide whether to submit a budget amendment to Congress that designates either all or none of that$5.1 billion of contingent spending as emergency funding. The $5.1 billion portion includes about$1 billion in additional DOD funding, $275 million for veterans' medical care, $250 million in aidto Israel and the Palestinians, $200 million in HIV/AIDS funding, and $450 million for electionreform. The funding designated as contingent emergency spending was either not requested by thePresident or reflects higher levels than included in the Administration's request.
On August 13, the President announced that he would not utilize the $5.1 billion contingent emergency spending. White House officials said, however, that the Administration would seek about$1 billion of that amount as an amended FY2003 appropriation request, including funds for Israel,the Palestinians, international HIV/AIDS, and the Transportation Security Agency. Based on thisaction, the total funding dedicated to combating terrorism since September 11 is $63.9 billion,including $40 billion that was appropriated immediately after the terrorist attacks and $24 billion inthe FY2002 supplemental.