US Senate adds Iraq war money to huge budget bill

By Richard Cowan

WASHINGTON, Dec 18 (Reuters) - The U.S. Senate on Tuesday moved toward approving more than $500 billion to keep the government operating through September 2008 and meeting President George W. Bush's demand for new Iraq war funds.

By a vote of 70-25, the Senate attached a Republican amendment adding $40 billion for the war in Iraq to the fiscal 2008 spending bill. The money would not be saddled with any of the conditions Democrats have sought for ending combat, now nearing five years.

"We need to pass this spending bill, with troop funds, without any strings and without any further delay," Senate Republican leader Mitch McConnell of Kentucky said.

The vote came after the White House issued a statement warning Bush would veto the bill if it didn't have the unrestricted war funding.

When coupled with about $30 billion the House of Representatives approved on Monday in additional funds for Afghanistan, Bush would have a new $70 billion "bridge fund" to wage war in the two countries well into 2008, his final full year in office.

The Senate's assistant Democratic leader, Dick Durbin of Illinois who opposes unconditional Iraq funding, told reporters this latest batch of money could keep the wars running through May or June.

If Congress does provide the $70 billion, it would jack up the overall cost of the two wars to about $670 billion so far.

Bush had asked Congress for an additional $190 billion for the two wars but has indicated he'd settle for less now. White House spokeswoman Dana Perino said "we're comfortable" with the $70 billion, as long as the rest is provided later.

Next year, as congressional and presidential elections heat up, Democrats are expected to wage a new battle to tie war funds to troop withdrawal timetables.

The Senate was expected to finish work on the huge budget bill soon, sending it back to the House for a final vote before Congress leaves this week for a three-week vacation. (Editing by Lori Santos)