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Copyright 2000 The Seattle Times Company  
The Seattle Times

October 6, 2000, Friday Second Edition

SECTION: ROP ZONE; News; Pg. A6; Capital Watch

LENGTH: 775 words

HEADLINE: Republicans craft plan to let Cuba receive food

BODY:
WASHINGTON--House and Senate GOP negotiators agreed last night on a plan to allow the sale of food to Cuba for the first time in nearly four decades, a move they said would clear the way for an easing of sanctions against communist leader Fidel Castro's regime.

The agreement would end the unilateral trade embargo against Cuba and four other countries blacklisted by the State Department: Iran, Sudan, Libya and North Korea. Farmers would be allowed to begin selling grain and rice to these countries, although in the case of Cuba they would not be able to use U.S. banks to finance the deals.

The effort has been led by Rep. George Nethercutt, R-Wash.

The Cuba provision was the last remaining item as negotiators worked through an $80 billion agriculture-spending bill for the coming year. They also put final touches on a GOP-drafted drug-reimportation measure designed to increase U.S. consumers' access to lower-cost drugs marketed overseas and eased restrictions that could qualify up to to 900,000 families for food stamps.

Feds seek to deny states excess funds for Medicaid

The government issued proposed regulations yesterday to close a loophole in Medicaid rules that has let Washington, Oregon and 18 other states reap billions of excess federal dollars from the health-care program for the poor. Critics say the practice threatens to cost taxpayers $127 billion over the next 10 years.

The regulations would phase out the extra payments over five years. No funding would be cut in the current fiscal year.

In addition, federal officials would continue a higher payment level for public hospitals, which often serve considerably more lower-income patients. The administration also said it would support legislation to increase payments to both public and private hospitals by $10 billion over 10 years.

States and health-care providers have 30 days to comment on the proposed rule. A final regulation will be published afterward.

Here's how the loophole works: The Medicaid program is a joint project, with the federal government paying at least 50 percent of the costs. States with proportionately larger poor populations receive a larger share from the federal government. Under the loophole, a state could list the cost of services at the maximum rate a local or county-owned facility charges, billing the federal government for half, even though the state has arrangements with the providers to pay less than the maximum rate.

House committee chairman draws ethics rebuke

The House ethics committee rebuked powerful committee chairman Bud Shuster yesterday for "serious official misconduct" but spared him from harsher penalties for accepting improper gifts, favoring a lobbyist and misusing congressional staff for politics.

An unrepentant Shuster, R-Pa., whose Transportation Committee controls funding for the nation's highways, mass transit and airports, dismissed the action in a written response as "overkill." Shuster maintained that he "complied with the law and with his understanding of what was right."

Colleagues who investigated Shuster and his ties to lobbyist Ann Eppard pronounced themselves "disturbed" by the lawmaker's defiance. They cited evidence that he allowed Eppard, after she resigned as Shuster's chief of staff in 1994, to continue lobbying him on behalf of her clients and accepted a Christmas vacation trip to Puerto Rico from interests she represented.

In a House floor speech before several dozen colleagues yesterday, Shuster explained why he negotiated the letter of reprimand: "I accept the findings to stop the hemorrhaging of legal fees to put this behind us."

House offers $1 billion yearly to prevent and treat AIDS

The House has agreed to provide more than $1 billion a year for AIDS prevention and treatment in a bill that for the first time factors in HIV infection in addition to AIDS cases in determining how federal money will be distributed.

The legislation, which the House passed 411-0 yesterday, reauthorizes for five years the Ryan White CARE Act, which expired when the new fiscal year began Oct. 1. It now returns to the Senate for what is expected to be quick approval.

Senate OKs stopgap funds to keep government running

The Senate yesterday gave quick approval to a second budget extension as legislators and the Clinton administration haggled over the stack of spending bills that remain stalled five days into the new fiscal year.

The measure, which passed by a 95-1 vote after no debate, will keep much of the government operating through Oct. 14. The current stopgap spending measure expires tomorrow.

GRAPHIC: photo; Bud Shuster

LOAD-DATE: December 4, 2000




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