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U.S. House Approves War-Spending Bill Amid Dispute Over IMF

By Brian Faler

June 17 (Bloomberg) -- A $106 billion bill funding the wars in Iraq and Afghanistan won approval in the U.S. House, overcoming nearly unified opposition from Republicans who opposed the measure’s aid to the International Monetary Fund.

The chamber voted 226 to 202 yesterday to forward the legislation to the Senate, which may take it up later this week.

Along with providing more than $82 billion in war-related funding, the bill includes $5 billion to secure $108 billion in loans to the IMF and $1 billion to pay for “cash for clunkers” vouchers to those who trade in their vehicles for more fuel- efficient models. It also would allow detainees held at Guantanamo Bay, Cuba, to be transferred to the U.S. for trial.

Senate Republicans said they plan to try to kill the “clunkers” provision.

Republicans were sharply critical in past years of those opposing war spending bills. All but five of the 175 House Republicans who voted yesterday opposed the legislation, largely because of the IMF provision.

“Passing a $108 billion global bailout on the backs of our soldiers is just not right,” said Representative Mike Pence of Indiana, the chamber’s No. 3 Republican. “Emergency war funding bills should be about emergency war funding.”

House Majority Leader Steny Hoyer, a Maryland Democrat, countered, “Do not delude yourself that this is not a vote to support the troops. Eighty percent-plus of this bill is about American servicemen and women in harm’s way.”

The IMF funding was sought by President Barack Obama to help the organization cope with the global economic slowdown.

‘Important Relief’

“This is important relief to ensure that we have strong global trade,” White House spokesman Robert Gibbs said before the House vote. “I don’t think, given where we are in the world economy, that we would want to see a pullback in that commitment and I think we should understand that exports create jobs here at home.”

The Republican opposition had caused Democratic House leaders to worry whether they would have the votes to pass the bill, given that some Democrats would vote against it because of their opposition to the wars in Iraq and Afghanistan.

Before yesterday’s vote, Hoyer said of the bill’s passage prospects: “I think we have the votes -- ‘confident’ might overstate it.”

In the end, 32 Democrats voted against the legislation; last month, 51 of them opposed an earlier draft of the bill.

‘Clunkers’ Opposition

Senator Judd Gregg, a New Hampshire Republican, said yesterday he intends to attempt to strike the “cash for clunkers,” provision from the bill. He said the proposal is unaffordable at a time of record federal budget deficits.

“As the nation’s debt continues to climb to unsustainable levels, it is troubling that Congress is looking for even more fiscally reckless ways to subsidize the auto industry,” Gregg said. “Taxpayers already have provided around $85 billion in direct assistance to the auto industry, and it’s about time we stop these deficit-spending handouts that pass the bill to our children and grandchildren.”

The legislation would bring total costs of the two wars to more than $900 billion, according to the nonpartisan Congressional Research Service.

Lawmakers added $14 billion to the administration’s funding request, including $2.7 billion to buy eight C-17 and seven C- 130 aircraft the Pentagon didn’t request. Another $600 million would go to purchase four F-22 aircraft. Other provisions would provide $7.7 billion to fight pandemic flu and $534 million for special payments to troops who served under “stop-loss” orders preventing them from returning home at the end of their tours.

Democrats dropped a provision from an earlier draft of the legislation aimed at blocking an American Civil Liberties Union lawsuit seeking the release of photos showing American military personnel abusing prisoners. The decision came after Obama intervened in negotiations over the bill, promising to use his powers to prevent the photos’ release.

To contact the reporter on this story: Brian Faler in Washington at bfaler@bloomberg.net.

Last Updated: June 17, 2009 00:00 EDT

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