Wednesday, June 21, 2006

Is Bush in For Hard times?

UPDATE 1-Line-item veto for Bush faces resistance in US House

June 20,2006

(recasts lead, updates with Senate panel vote)

By Richard Cowan

WASHINGTON, June 20 (Reuters) - President George W. Bush's drive for line-item veto power to control deficit-spending is facing resistance in the U.S. House of Representatives where the outcome of a vote scheduled for Thursday is in doubt, a top Bush aide said on Tuesday.

White House budget director Rob Portman, on Capitol Hill trying to win over skeptical Republican members of the House Appropriations Committee and other lawmakers, acknowledged to reporters that the vote might go against the president.

But he added, "I would not want to throw in the towel until we've had a chance over the next 48 hours to really work members and explain this to them."

Last week, the House Budget Committee backed giving the president the ability to identify specific spending projects in larger bills passed by Congress and ask the House and Senate to kill those individual items.

Backers hope such a measure would pare the special-interest "pork" in bills that has contributed to budget deficits that have hit at least $300 billion annually since 2003.

Stronger line-item veto power was given to former President Bill Clinton, who used it 82 times, but it was ruled unconstitutional in 1998.

Many House appropriators have signaled opposition to even a modified line-item veto. "It's a mixed bag," Portman said. "Most of those I've talked to are still not decided; some outright oppose it." Others, he said, were satisfied with changes made to the measure.

The issue received new life following recent scandals in which lobbyists have doled out gifts to lawmakers in exchange for spending and legislation favorable to their clients.

Meanwhile, the Senate Budget Committee, on a partisan 12-10 vote, approved a line-item veto coupled with other budget reforms that could push down domestic spending.

Pressure to cut domestic spending could be more acute as Republicans also are pushing to permanently repeal the estate tax, which would cost hundreds of billions of dollars in lost revenues and interest over 10 years.

While Portman praised the committee's package of budget reforms, he acknowledged difficulties ahead in winning passage in the full Senate.

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