US Congress pushes ceiling on national debt to US$9tn

"When it comes to deficits, this president owns all the records. The three largest deficits in our nation's history have all occurred under this administration's watch."

Harry Reid, US Senate minority leader

The US Congress pushed the ceiling on the national debt to nearly US$9 trillion, and the House and Senate promptly voted for major spending initiatives for the war in Iraq, hurricane relief and education.

On Thursday, the House approved US$92 billion in new money for the wars in Iraq and Afghanistan and for relief along the hurricane-ravaged Gulf Coast.

The Senate adopted a US$2.8 trillion budget blueprint that anticipates deficits greater than US$350 billion for both this year and next.

The spending blueprint, approved 51-49, little resembles US President George W. Bush's proposal last month for the budget year that begins Oct. 1.

To the disappointment of budget hawks, the Senate's measure would break Bush's proposed caps on spending for programs such as education, low-income heating subsidies and health research. All told, senators endorsed more than US$16 billion in increases above Bush's proposed US$873 billion cap on spending appropriated by Congress each year.

US President Dick Cheney was on hand for a possible tie-breaking vote, but that proved unnecessary. Senators earlier voted 52-48 to send Bush a measure that would allow the government to borrow an additional US$781 billion and prevent a first-ever default on Treasury notes.

As a result, the government could pay for the war in Iraq without raising taxes or cutting popular domestic programs.

The budget blueprint advanced without Cheney's vote in the Senate when Democratic Senator Mary Landrieu supported the plan after winning concessions to help her hurricane-damaged state of Louisiana and the rest of the Gulf Coast.

She won inclusion of a proposal that could provide up to US$2 billion a year for levee and coastal restoration projects. The money would come from auctioning television airwaves to wireless companies and from potential oil leasing revenues from exploration in an Alaskan wildlife refuge.

Among the specific votes for the budget plan were:

* US$3 billion more for heating subsidies for the poor. It passed 51-49.

* US$7 billion more for education, health and worker safety accounts. It passed 73-27.

* US$3.7 billion more for military personnel costs.

* US$1.2 billion more for aviation security and stopping Bush's proposed increase in airline ticket taxes. They advanced by voice vote.

* US$1 billion more for benefits for military survivors.

The Senate votes on Thursday set up a confrontation with the House, which is certain to oppose the additional spending.

In fact, the Senate's moves appear to make it less likely that Congress will settle on a final budget plan this spring. House Republicans will not release their budget until after next week's congressional recess.

The votes dismayed deficit hawks such as Senate Budget Committee chairman Judd Gregg. He already had decided to drop Bush's proposals to cut the growth of the Medicare health insurance program for the elderly, strengthen tax-free health savings accounts and advance legislation to make permanent his 2001 tax cuts.

Republicans eager to show their conservative supporters that they are getting serious about cracking down on spending. Last weekend, Republican presidential aspirants at the Southern Republican Leadership Conference in Memphis, Tennessee, promised to be more thrifty with the people's money.

But Republican moderates such as Sen. Arlen Specter of Pennsylvania apparently did not get the message. His amendment to add US$7 billion for education, health and labor programs won support from most Republicans, including Majority Leader Bill Frist of Tennessee, who has criticized Congress for embarking ``down a wayward path of wasteful Washington spending.''

Democrats the bill, saying it was needed because of fiscal mismanagement by Bush, who came to office when the government was running record surpluses.

"When it comes to deficits, this president owns all the records," said Senate Minority Leader Harry Reid. "The three largest deficits in our nation's history have all occurred under this administration's watch."

The debt limit increase was the fourth of Bush's presidency, totaling US$3 trillion. With the budget deficit expected to approach US$400 billion for both this year and next, an additional increase in the debt limit almost certainly will be required next year.