Homeland Security, Economic Stimulus Debates Could Slow Passage of Kennedy-Frist Bioterrorism Bill, CQ’s Goldreich Says

Sens. Edward Kennedy (D-Mass.) and Bill Frist (R-Tenn.) are this week expected to unveil their long-awaited $2.5 billion bill to combat bioterrorism, but the measure's passage could get "bogged down" in broader debates over homeland security and economic stimulus, Congressional Quarterly senior reporter Samuel Goldreich says in this week's "Congressional Quarterly Audio Report." The $2.5 billion expenditure is lower than Kennedy's original $10 billion proposal, but the two senators say "it's urgent to pass what they can agree on immediately" and to continue talks on additional funding next year. The smaller amount has White House approval as well. How soon the bill might pass, however, is unclear, Goldreich says, because "Democrats and Republicans are fighting over bioterrorism as part of a bigger battle for homeland security." Democrats hope to spend up to $20 billion more to prepare for terrorism, while Republicans want to hold spending under $5 billion. Goldreich adds, "And all of that will be folded into legislation causing the nastiest debate on the Hill right now, with the Senate gearing up for a floor fight as early as this week over how to stimulate the economy."

Economic Stimulus
The central issue in the Senate's stimulus debate is how to help those who have lost their jobs following the Sept. 11 attacks on the World Trade Center and Pentagon, Goldreich says. Senate Majority Leader Tom Daschle said last week he "won't even consider a bill that doesn't include $17 billion" to subsidize COBRA premiums and $16 billion for expanded unemployment benefits. Under COBRA, laid-off workers may continue to access employer-sponsored health coverage by paying 102% of the premium. In response to "Daschle's ultimatum," Senate Republicans have proposed offering COBRA subsidies through block grants to states, saying states should be allowed to determine how best to allocate funding to affected workers. Democrats, however, say block grants impose no requirements on states and insist COBRA subsidies should come directly from the federal government. Goldreich predicts neither party will prevail, speculating, "If anything passes, it will look like the compromise cooked up by a group of centrists" -- led by Sens. James Jeffords (I-Vt.) and John Breaux (D-La.) -- "to provide a refundable tax credit for health insurance." Goldreich's full report is available online ("Congressional Quarterly Audio Report," 11/5).