Congress Reining in Private Contractors

Plainclothes contractors working for Blackwater USA take part in a firefight as Iraqi demonstrators loyal to Muqtada Al Sadr attempt to advance on a facility being defended by U.S. and Spanish soldiers, Sunday, April 4, 2004 in the Iraqi city of Najaf,. The Blackwater USA contractors were actively involved in defending the position. The images were taken by Spanish freelance photographer Gervasio Sanchez and were made available to The Associated Press Tuesday, October 2, 2007. (AP Photo/Gervasio Sanchez) (Gervasio Sanchez - AP)

The White House also cited concerns with stretching FBI resources by mandating that the agency conduct investigations overseas. Also, officials said they feared the military could be overtaxed if required to support criminal investigations led by the Justice Department.

In a statement, Price said the White House's objections were unfounded and "should infuriate anyone who believes in the rule of law.

"The fact is the administration has an embarrassing track record for investigating and prosecuting misconduct by contractors working in our name," Price said.

Blackwater founder Erik Prince told a House panel Tuesday that he supports expanding the law.

"Beyond firing him for breaking the rules, withholding any funds we can, we can't flog him," Prince said of the intoxicated Blackwater guard. "We can't incarcerate him. We can't do anything beyond that."

Blackwater has provided security for the FBI in Iraq. But spokesman Richard Kolko said that to avoid any appearance of a conflict of interest, the team investigating the Sept. 16 shooting would use U.S. government personnel for any security needs.

___

Associated Press writer Matt Apuzzo contributed to this report.