House Approves $1 Billion for Mitch Victims

The House on Wednesday narrowly approved a bill to provide nearly $1 billion in disaster assistance for Central American countries still struggling to recover from Hurricane Mitch.

The Senate passed a similar bill Tuesday and lawmakers expressed hope that the measure--which also includes aid for U.S. farmers hit by economic hard times--could make money available in time for the spring planting season.

But differences in the House and Senate versions of the legislation--as well as continuing disagreements between President Clinton and Congress over contentious side issues--may delay release of the funds for weeks. Indeed, the bill sets up the first budget confrontation of the year between Clinton and the Republican-controlled Congress.

The House approved the measure, 220 to 211, but passage came only after GOP leaders twisted arms to win over conservative Republicans troubled because the cost of the aid package was not fully offset by cuts in other programs.

But Clinton has threatened to veto the bill, partly because of the cuts it would make in other programs--including U.S. backing for international development banks. These cuts would offset about 85% of the bill’s price tag.

Republicans seemed unfazed by Clinton’s veto threats.

“Let him cut off the aid to these needy and desperate people in Central America,” said Rep. Sonny Callahan (R-Ala.). “He’s not going to do it.”

The debate foreshadows what is expected to be a bitter, yearlong battle over spending priorities, even though the federal budget is swimming in surpluses. Republicans have pledged not to use that surplus for anything but saving Social Security, meaning that they will have to pair every decision to increase spending with cuts in other areas.

“This is going to be a very difficult year,” said House Appropriations Committee Chairman C. W. Bill Young (R-Fla.).

Differences between House and Senate versions of the bill will be worked out by a conference committee, but those talks probably will not even begin until mid-April because Congress is about to start a two-week recess.

The cornerstone of the bill is Clinton’s request for $956 million to help Honduras, Nicaragua and other Central American nations rebuild their infrastructure and otherwise recover from the ravages of Hurricane Mitch, which last fall caused an estimated $8.5 billion in damage and claimed 9,000 lives. The United States already has provided about $300 million in relief.

Republicans back Clinton’s request for additional aid, saying it is necessary to safeguard this country’s past investments in the political stability of the region.

The bill also includes $152 million for U.S. farmers whose commodity exports have suffered from the collapse of markets in other parts of the world and $80 million for the Immigration and Naturalization Service to help pay for detention centers at the U.S. border. Lawmakers want to beef up these centers because of concern that the lingering effects of the storm will spark a flood of illegal immigrants into the United States.

Other provisions in the measure would authorize $100 million requested by Clinton to shore up the new regime in Jordan and $10 million to help Colombia recover from last year’s earthquake.

Clinton had urged quick action on the bill, saying that foreign disaster victims and U.S. farmers have urgent need for these resources. He also argued that budget law does not require corresponding cuts to pay for spending in such emergencies.

The bill, among other provisions, would cut $648 million that the United States has put up to guarantee loans from the World Bank and other international development banks. Administration officials have threatened a veto over the provision, saying it would set back efforts to help troubled Asian economies.