Plans To Shift Funds to Domestic Programs Appear Dead

By Mark Pitsch

WASHINGTON--Setbacks in both the House and Senate have effectively doomed prospects for a transfer of defense dollars to domestic programs this year, virtually ensuring that the appropriations process will feature tightly restricted spending choices and competitive lobbying efforts by domestic interest groups.

By a vote of 238 to 187, the House last week rejected HR 3732, a bill that would amend the 1990 Budget Enforcement Act to allow transfers among budget categories. Under the act, separate spending caps constrain defense, domestic, and international spending until next year's budget cycle.

Proponents of HR 3732 wanted to dissolve the act's "fire walls'' because Congressional leaders contend that the caps would keep overall domestic spending below the amount needed to keep pace with inflation. (See Education...