	Most Recent Developments

On June 30, 2008, President Bush signed H.R. 2642 ( P.L. The bill also extends unemployment payments, and expands veterans' educational benefits. As enacted, the bill would cost an estimated $202 billion in FY2008 and FY2009 and almost $60 billion more through FY2018, of which
$183.5 billion is supplemental appropriations for defense, international affairs, disaster relief, and some other domestic programs, including $2.65 billion of newly added funds to respond to Midwest flooding earlier in the month; $14 billion in FY2008 and FY2009 is for extended unemployment benefits, with a net cost, following savings in future years, of $10 billion over eleven years through FY2018; $796 million in FY2008 and FY2009 and $63 billion through FY2018 is for expanded veterans educational benefits; and $1.2 billion in FY2008 and FY2009 is due to Medicaid rules changes. The final bill reflects compromises with the White House on several issues. Earlier Congressional Action

In earlier action, on May 15, 2008, the House approved an initial version of the bill that provided $21 billion for military construction, international affairs, and domestic programs, but did not include $162.5 billion that the House leadership had proposed for operations in Iraq and Afghanistan. By a vote of 141-149 with 132 voting present, the House rejected the first amendment to provide $96.6 billion in FY2008 and $65.9 billion in FY2009 funding for military operations. A week later, on May 22, 2008, the Senate approved an amended version of H.R. 2642 , providing $194 billion in supplemental appropriations for FY2008 and FY2009, and also approving extended unemployment payments, expanded veterans' educational benefits, Medicaid rules changes, and adding a limit on Medicare payments to new specialty hospitals. On key roll call votes, all of which required 60 votes for approval, the Senate
rejected by a vote of 34-63 an amendment to the House bill to provide funding for defense programs and to establish various Iraq policy provisions; approved by a vote of 75-22 an amendment providing defense funding without policy restrictions; and approved by a vote of 70-26 an amendment providing funding for domestic programs, international affairs, and military construction. adds $2.65 billion to replenish accounts expected to be used for Midwest flood relief—the White House had reportedly requested $1.8 billion; delays implementation of six of seven Administration changes in Medicaid regulations that would reduce Federal payments to the states, rather than of all seven as in the House and Senate bills; drops most Iraq-related policy provisions that were in the House-passed version of the bill, including a provision requiring withdrawal of combat troops within 18 months and others requiring that troops meet targets for readiness and for dwell time at home between deployments—the bill includes measures requiring the Iraqi government to match amounts of some reconstruction assistance and prohibiting the use of funds to establish permanent bases in Iraq, and it extends mandatory fraud reporting requirements to contractors working abroad; provides $5.8 billion for Gulf Coast hurricane protection levees, as the Administration requested, and deletes $4.6 billion in additional flood-relief funding in the Senate bill, though the final bill also adds $73 million for housing vouchers; provides $4.2 billion for military construction, which is $2.2 billion above the Administration request, $1.2 billion above the Senate level, and $0.4 billion below the House May 15-passed bill; provides $400 million in unrequested funds for science programs rather than $1.2 billion as in the Senate bill; provides $150 million to bolster Food and Drug Administration safety programs, compared to $275 million in the Senate bill; and provides $178 million for the Bureau of Prisons and $210 million for the Bureau of the Census, as requested by the agencies, though not formally included in the Administration's May 2, 2008, supplemental request, and as included in both the House and Senate bills. Key Issues in the Bill

		Expanded GI Bill Veterans' Education Benefits

The initial House- and the Senate-passed versions of the FY2008 supplemental appropriations bill, H.R. 2642 , as passed by the House on June 19 and the Senate on June 26, includes a version of the initial Webb/Mitchell expansion of veterans educational benefits, with a provision added to allow benefits to be transferred to spouses or other dependents, as the White House had urged. Of the President's total emergency request, $102.5 billion for defense and $5.4 billion for international affairs remained outstanding. Congressional Action on FY2008 Supplemental Appropriations Through December 2007
Administration Requests
Between February and October of 2007, the Administration submitted requests for FY2008 emergency supplemental appropriations in three blocks. 110-161 , on December 26.
On June 30, 2008, President Bush signed into law a bill, H.R. 2642 (P.L. 110-252), that makes supplemental appropriations for FY2008 and FY2009, extends unemployment payments, and expands veterans' educational benefits. The House approved the measure on June 19 and the Senate on June 26. As enacted, the bill reflects compromises with the White House on several key issues. It extends unemployment benefits for 13 weeks but not 26, allows veterans' educational benefits to be transferred to dependents, does not include an offsetting tax increase, limits other domestic spending, and delays implementation of six, rather than seven, new Medicaid rules. The amended bill also drops most Iraq-related policy provisions that had been in earlier versions. In all, the bill provides $183.5 billion in supplemental appropriations, including $2.65 billion of newly added funds to respond to Midwest floods. Extended unemployment benefits are estimated to cost a net of $10 billion over ten years and enhanced veterans educational benefits $63 billion.
Earlier, the House approved an initial version of the bill on May 15, 2008. Procedurally, the House took up H.R. 2642, a bill on a different topic, and considered three amendments. By a vote of 141-149, with 132 Republicans voting "present," the House rejected an amendment providing $162.5 billion in FY2008 and FY2009 for military operations. It adopted a second amendment setting out Iraq-related policies, including a requirement that combat forces be withdrawn from Iraq within 18 months. And it approved a third amendment to expand veterans' educational benefits offset by a tax surcharge; extend unemployment compensation; delay new Medicaid regulations; and provide $21 billion in supplemental appropriations.
On May 22, 2008, the Senate approved an amended version of the bill providing $194 billion in supplemental funding. The Senate-passed bill included $162.5 billion for defense and about $8 billion more than the House bill for domestic programs. The bill expanded veterans' educational benefits without an offset and limited Medicare payments to new specialty hospitals. On key roll calls, the Senate rejected by 34-63 an amendment to provide defense funding and to establish Iraq-related policies; approved by 75-22 an amendment to provide defense funding without policy restrictions; and approved by 70-26 an amendment to fund domestic, international affairs, and military construction programs.
During its first session, the 110th Congress approved FY2008 emergency supplemental appropriations of $86.8 billion for the Department of Defense and $2.4 billion for international affairs. This left unresolved Administration requests for $102.5 billion for defense and $5.4 billion for international affairs. For congressional action on FY2008 supplemental funding through December 2007, see CRS Report RL34278, FY2008 Supplemental Appropriations for Global War on Terror Military Operations, International Affairs, and Other Purposes, which will not be updated further. This CRS report, RL34451, reviews congressional action on remaining FY2008 and additional FY2009 supplemental funding.