Administration representatives sought to curb its costs in closed-door talks, Obey said. Instead, the chief concession by Democrats was to add an administration-backed plan - costing $10 billion over 10 years - allowing veterans to transfer their benefits to their spouse or a child.
The White House tried much harder to kill the effort to extend unemployment benefits as part of the war funding bill. Just two weeks ago, it appeared the administration would probably prevail. But after the unemployment rate jumped a half-percentage point to a nationwide average of 5.5 percent, House Democrats engineered a veto-proof tally in support of the 13-week extension.
In late-stage talks with Boehner, a key figure in negotiating the overall agreement, Democrats dropped a plan to extend unemployment benefits for an additional 13 weeks in states with particularly high unemployment rates. They also agreed to require people to have worked for 20 weeks in order to be eligible for the extended payments.
In another key concession, House Democrats dropped a provision to pay for the GI college benefits by imposing a half-percentage point income tax surcharge on incomes exceeding $500,000 for single taxpayers and incomes over $1 million earned by married couples.
The move was long expected, but nonetheless riled moderate and conservative "Blue Dog" Democrats upset that rules requiring additions to federal benefit programs be paid for with additional revenues or offsetting cuts to other programs.
Democrats, many Republicans and governors across the country emerged the victors in a battle with the White House to block new Bush administration rules designed to cut spending on Medicaid health care for the poor and disabled.
On war spending, the bill would prohibit U.S. money from being spent on Iraq reconstruction efforts unless Baghdad matches every dollar spent. But negotiators dropped a demand that Bush negotiate an agreement with Baghdad to subsidize the U.S. military's fuel costs so troops operating in Iraq aren't paying any more than Iraqi citizens are.
Last month, after a bitter debate, the House passed the unemployment benefits extension, the GI Bill improvements and a series of restrictions on Bush's ability to conduct the war. The war funding part of the legislation failed amid the partisanship.
The Senate restored the war funding and folded in more than $10 billion in additional non-war spending backed by Republicans and Democrats alike. Most of that money is now eliminated.
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