Hill vs. Spending: Two 800-Pound Gorillas

After several years of chaos, House and Senate leaders are seeking to restore order to the spending process as part of a broader effort to impose fiscal discipline. But this year's strict budget limits have made negotiations more contentious than usual and exposed stark differences between Republicans and Democrats over the government's priorities.

House GOP leaders were dealt a rare blow Thursday, when moderate Republicans teamed up with Democrats to reject a major labor, health and education appropriations bill that would have reduced spending by $1.4 billion this year. Some lawmakers complained that the $142.5 billion measure did not contain money for many of the special pork-barrel projects they sought for their home districts.

Now the bill must be returned to negotiators for more fine-tuning, as Democrats and moderate Republicans press for more funding for disease research and subsidies to help low-income people pay their heating bills.

The impasse highlights the challenge of Republicans in seeking to satisfy conservative calls for a return to fiscal discipline while coping with mounting demands for relief for victims of Hurricane Katrina and staggering costs associated with the war in Iraq. Republicans say they are up to the task, citing the House vote early Friday that narrowly approved a five-year budget plan to cut $50 billion of entitlement spending.

"What it does is start to turn down the escalating costs . . . for our children and our grandchildren," said Speaker J. Dennis Hastert (R-Ill.). "One of the things that we cannot leave to that next generation is a huge deficit that they can't afford."

But the GOP leadership is finding the going tough simply to complete the dozen fiscal 2006 spending bills essential to keep the government operating.

For example, the $445 billion defense spending bill has become entangled in a rash of disputes in recent weeks, including one over Sen. John McCain's drive to crack down on the torture of terrorism suspects being held in U.S. prison facilities. Because it may be the last appropriations bill completed this year, the defense measure may attract many last-minute provisions, including an across-the-board cut in federal agencies' spending that House conservatives are seeking.

Before they left town Friday for a two-week recess, lawmakers approved a resolution to keep the government funds flowing until Dec. 17, including money for military operations in Iraq and Afghanistan.

One spending bill that breezed through the House and the Senate on Friday would provide $45.4 billion in military construction funds and veterans benefits. Medical services, including mental health treatment and prosthetic limb research, would receive funding increases, and new housing would be provided for nearly 15,000 military families.

The popularity of military-related programs is one reason the across-the-board cut is likely to meet stiff opposition. "We can't allow it to happen," said Sen. Dianne Feinstein (D-Calif.), who serves on the Appropriations Committee.

A second bill, containing $65.9 billion for the transportation, Treasury and housing departments, was also approved by the House and the Senate on Friday. But that one had been mired in conflict until final passage.

It had been held up in part because of a provision regarding the jurisdiction of lawsuits directed at moving companies for overcharging. Another controversial measure would permit Southwest Airlines to fly to Missouri from Dallas's Love Field, part of a broader bid by the low-fare carrier to repeal a 1979 law, supported by rival American Airlines, that limits flights from Love Field.