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Copyright 2002 The Seattle Times Company  
The Seattle Times

June 28, 2002, Friday Fourth Edition
Correction Appended

SECTION: ROP ZONE; News; Pg. A5; Capital Watch

LENGTH: 869 words

HEADLINE: Capital Watch

DATELINE: Washington

BODY:
House OKs GOP drug legislation

WASHINGTON -- Republicans pushed Medicare prescription-drug legislation through a weary House early today, rejecting Democratic claims the bill was an election-year gimmick that would do little to help senior citizens. The 221-208 vote fell largely along party lines, and sent the measure to an uncertain fate in the Senate.

The legislation would commit $320 billion over the next decade for a system of Medicare prescription-drug coverage through the private insurance industry.

Costs would be heavily subsidized for low-income Medicare beneficiaries. Under a typical plan, others would pay a monthly premium of roughly $33 and an annual deductible of about $250.

The government would pay 80 percent of the next $1,000 of drug costs and 50 percent of the subsequent $1,000.

All beneficiaries -- low-income included -- would have to pick up the tab beyond that, until they reached $3,700 in out-of-pocket expenses, at which time all additional costs would be covered.

The measure also provides billions of dollars in increased Medicare payments to hospitals, doctors and nursing facilities.

"This bill is a giant step forward for seniors in America," said Rep. Nancy Johnson, R-Conn. "This is the greatest leap forward for women in health care since the founding of Medicare."

In a debate that stretched well past midnight yesterday, Democrats countered the legislation marked the latest in a long string of GOP attacks on a program created in 1965. "There's no assured benefits and there's no set premiums because the Republicans are privatizing Medicare," said Rep. Jim McDermott, D-Seattle. "They are giving this whole benefit to the private insurance companies."

Military-spending measure is biggest passed in decades

WASHINGTON -- The House yesterday passed a $355 billion defense-spending bill that includes a 4.1 percent pay raise for military personnel and some of the biggest funding increases for the military in decades.

Minutes later across the Capitol, the Senate approved a $393 billion bill that maps out defense-spending policy for the fiscal year 2003 beginning Oct. 1 and seeks to lay out a delicate compromise on the budget for a missile-defense system.

In completing the two defense bills before leaving for its July 4 recess, Congress responded to the urgings of President Bush that it put defense at the top of its legislative list. "They don't need to delay the defense bill in a time of war," he said in a speech earlier this week.

The Senate bill, passed 97-2, authorizes or approves military-spending programs for the Pentagon and other agencies, such as the Energy Department, with military functions; the House passed its version last month. The House spending bill, passed 413-18, details specific spending for the fiscal year.

House GOP push through raise in U.S. debt limit

WASHINGTON -- Republicans barely muscled a $450 billion debt-limit increase through Congress yesterday, finally resolving an issue that had become an increasingly difficult political burden for the GOP.

After weeks of saying they lacked the votes to win, top Republicans spent the day lobbying rank-and-file lawmakers and abruptly brought the bill to the House floor. The measure was approved by a mostly party-line 215-214, with just three Democrats and six Republicans defecting.

The Democratic-controlled Senate had approved the same increase in the borrowing ceiling June 11 by a bipartisan 68-29 margin. President Bush is certain to sign it.

No one doubted that, eventually, Congress would raise the current $5.95 trillion debt limit to avert an unprecedented federal default. But for months, Democrats used the issue as the symbol of what they say are President Bush's failed fiscal policies, particularly the tax cut he pushed through Congress last year.

"Two Republicans, Mr. Reagan and Mr. Bush, they dug the hole," Rep. Jim McDermott, D-Seattle, said of the deficits that prevailed before then. "We dug us out of it and now you're back into it. ... Why don't you admit you made a mess?"

Until yesterday, House GOP leaders said their plan was to win passage of the debt-limit increase by including it in the popular counterterrorism package. But Democrats were eager to force a separate vote on the issue so in this fall's congressional elections, their candidates could accuse Republicans of favoring federal borrowing to pay for last year's tax cut.

Amtrak to get $100 million, seeks $205 million more

WASHINGTON -- The Bush administration said yesterday it would lend Amtrak $100 million to keep its trains running through next month.

Amtrak and Transportation Department officials said they would ask Congress to provide the rest of the $205 million the railroad says it needs to operate until Sept. 30, when the fiscal year ends.

Yesterday's developments mean trains will run past the Fourth of July weekend.

There is no danger of Amtrak cutting specific routes to save money. Amtrak, which lost $1.1 billion last year, had raised the possibility of shutting down rail service nationwide shortly after July 4 because it was running out of money.

CORRECTION-DATE: July 2, 2002

CORRECTION:
. A headline accompanying an item in this Capital Watch notebook incorrectly said Amtrak was seeking $205 million more from Congress after getting a $100 million loan, for a total of $305 million. Amtrak was actually seeking a total of $205 million.

LOAD-DATE: July 3, 2002




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