Democrats craft new Iraq war-funds plan

A U.S. army soldier with the 10th Mountain Division keeps a lookout after his patrol stopped to check a vehicle in Mahmudiya, south of Baghdad, April 25, 2007.

WASHINGTON (Reuters) - Democratic leaders in the House of Representatives said on Tuesday that they will try to pass a new Iraq war-funding bill to keep combat operations running for the next two or three months while also forcing a troop withdrawal vote in July.

House Majority Leader Steny Hoyer, a Maryland Democrat, said a vote could come as early as Thursday on a new plan to provide more than $30 billion now for combat operations in Iraq and Afghanistan before existing war funds run out. Another $10 billion or so would beef up veterans health care and other military programs.

The House vote would come in the midst of a three-month fight between congressional Democrats and the White House over the Iraq war and as the Pentagon adds 30,000 U.S. troops to help secure Baghdad from sectarian violence that has spiraled out of control.

Last week, Bush vetoed a $124 billion war funding bill because it called for a phased withdrawal of combat troops starting no later than October 1.

House Appropriations Committee Chairman David Obey, a Wisconsin Democrat, said the bill he and Democratic Rep. John Murtha of Pennsylvania have drafted would give Bush "two more months to demonstrate there was a prayer his plan can succeed."

In the meantime, Bush would have to deliver to Congress by July 13 progress reports about Iraqi military units in taking over operations from U.S. forces, along with reports on Iraq's progress in passing an oil revenue distribution law and other measures to create domestic political stability.

Under the Obey-Murtha plan, which is still being mulled by Democrats, Congress would have about 10 days to review Bush's reports.

Then, in late July, Congress would be faced with a decision: Whether to dedicate the next batch of emergency military funds, around $50 billion, to continue combat or to use the money to bring the combat troops out of Iraq.

DEBATE WON'T END

Even if the House designates this batch of money for combat, the debate over ending the war won't end there. Next up on the House schedule in July would be the fiscal 2008 defense spending bill, which Obey said would also be a legislative battleground for ending the war.

The White House wants about $100 billion right away to continue combat this year, without any conditions. It also wants the money released at once, not in two steps as House Democrats are now pondering.

"We think it's bad management" that "denies commanders and forces the kind of predictability they need to be able to plan effectively," White House spokesman Tony Snow said of the Democrats' proposal.

Senate Majority Leader Harry Reid, a Nevada Democrat, said he was awaiting a decision by the House before deciding on what kind of bill to advance in the Senate.

Obey emphasized that his new war-funding bill was still under review by Democrats and there was no guarantee it will attract enough support to bring it to a vote this week.

Obey said he also was continuing to meet with the White House to see if lawmakers can write a compromise bill with the administration's blessing.

The new version of the war-funding bill also would include an increase in the U.S. minimum wage, tax cuts for small businesses and a smattering of other domestic funds, including more for health care for poor children, to fight a possible avian flu pandemic and rebuilding states hit by hurricanes.

Democrats said separate legislation could be voted on Friday, which had been included in the funding bill Bush vetoed, providing about $4.5 billion for crop losses and other rural initiatives.