Message-ID: <15663798.1075858728962.JavaMail.evans@thyme> Date: Wed, 24 Oct 2001 15:40:08 -0700 (PDT) From: cp-del@nationaljournal.com To: undisclosed-recipients@enron.com Subject: National Journal's CongressDaily - Wednesday, October 24, 2001 Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: cp-del@nationaljournal.com X-To: undisclosed-recipients X-cc: X-bcc: X-Folder: \RSHAPIRO (Non-Privileged)\Shapiro, Richard\Deleted Items X-Origin: Shapiro-R X-FileName: RSHAPIRO (Non-Privileged).pst 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. 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