The House Appropriations subcommittee on foreign operations yesterday voted 12 to 0 to provide $1.5 billion in emergency economic aid to Israel over the next two years.
The subcommittee's action, which must be approved by the full committee, came after Secretary of State George P. Shultz notified the subcommittee chairman, Rep. David R. Obey (D-Wis.), that the Reagan administration has ended its opposition to the aid and approves of Israeli Prime Minister Shimon Peres' economic recovery plans.
The administration still has not made a formal request for the supplemental aid, which also includes $500 million for Egypt and $8 million to help Palestinian residents of the Israeli-occupied West Bank and Gaza Strip. The delay was due primarily to objections from Office of Management and Budget Director David A. Stockman.
Administration officials said yesterday that Stockman had been persuaded by Shultz and White House chief of staff Donald T. Regan to end his objections. As a result, the officials added, formal justifications for the supplemental aid request are expected to be forwarded to the subcommittee next week.
The subcommittee, acting on a motion by Rep. Jack Kemp (R-N.Y.), also deferred a vote on providing $237 million for the current fiscal year to clear up arrears in funds pledged by the United States to the World Bank and other multinational lending institutions.
Many House Republicans want assurances that the multinational banks will not use the funds for loans to Nicaragua.
Obey, noting that the objections came from "the administration's side of the aisle," said he was not going to "get a double hernia" trying to win passage of the funds until the administration brings the Republicans into "a bipartisan consensus" on support for the lending institutions.