House Passes $18.4-Billion Spending Bill

The House approved an $18.4-billion appropriation bill Friday that includes money to give most federal employees a 3.6% pay increase effective Jan. 1.

The bill, passed 376 to 26 and sent to the Senate, also includes a provision to delay for one year a business-opposed tax rule designed to encourage companies to expand the number of employees covered by health insurance.

The pay hike will go to all federal civilian employees except for members of Congress, federal judges and top officials of the executive branch. Congress may consider separate legislation later this year to increase pay for those groups.

The 3.6% pay increase was authorized earlier when Congress adopted the budget resolution for 1990.

Funds for the increase were included in the appropriation bill for the Treasury Department, Postal Service and general government.

The bill appropriates $5.6 billion for the Internal Revenue Service to fund 115,210 workers, an increase of 1,399 over the current staffing level.

It also includes $148 million for the new Office of National Drug Control Policy, headed by former Education Secretary William J. Bennett, most of which he is to disperse to law enforcement agencies.

The health insurance provision concerns Section 89, which was enacted in 1986 and requires employers to demonstrate that their health plans do not favor higher-paid workers.

Some business groups have lobbied Congress to drop the rule, claiming that it is so complicated, time-consuming and expensive that it ends up having an effect that is the opposite of what was intended.

“Many of them (employers) may cancel their health insurance plans for employees rather than go through all the red tape of Section 89,” said Rep. Louise M. Slaughter (D-N.Y.).

The rule was to take effect last Jan. 1 but became so controversial that the Treasury Department delayed its implementation until Oct. 1.

The bill also contains $2.1 million to upgrade security at Vice President Dan Quayle’s official residence at the Naval Observatory in Washington and an additional $200,000 to help remodel and renovate the third floor of the residence, which is used by Quayle’s three children.