U.S. House backs $48.8 billion foreign aid funding bill

WASHINGTON (Reuters) - The U.S. House of Representatives on Thursday approved a $48.8 billion spending bill to bolster U.S. foreign policy and aid efforts, including to allies like Pakistan and Afghanistan.

The legislation includes $2.7 billion in foreign aid for Afghanistan and $1.5 billion for Pakistan as they fight Taliban militants. It also provides $2.2 billion for Israel, another close U.S. ally, for the fiscal year 2010 that starts October 1.

The legislation is $3 billion less than the $52 billion requested by President Barack Obama, with cuts in funds for items such as overseas diplomatic operations and money for agricultural assistance and improved food security.

The House bill, approved 318-106, also took a shot at Obama for trying to avoid close congressional oversight of his administration's actions at the International Monetary Fund, which aims to help countries weather the financial crisis.

But with the Senate also working on its version, the legislation is likely to change before becoming law.

The Senate Appropriations Committee approved its own $48.7 billion variant of the bill and included a provision to codify into law Obama's order lifting restrictions on U.S. government funding for groups that provide abortion services or counseling abroad.

The panel voted 17-11 to include such language despite protests by Republicans like Sam Brownback who warned it would spark a huge fight on the floor, particularly since Obama's order already set U.S. government policy.

The Senate bill also includes $1.57 billion in aid for Pakistan and $2.7 billion for Afghanistan, though the latter drew concern from Republican Senator Judd Gregg. "We need to watch that money very closely" to ensure it is not wasted.

The Senate committee also struck $15 million for the U.S. television service it beams into Cuba, known as TV Marti, after Democratic Senator Byron Dorgan said the signal was jammed by the Communist government so no one there could see it.

Differences between the House and Senate bills will have to be resolved before it can become law.

HOUSE TARGETS OBAMA OVER IMF

The House, furious at Obama's attempt to avoid congressional influence over administration actions at the IMF, approved an amendment aimed at exerting more control.

Obama drew ire from some lawmakers after he said a previous law Congress passed that provided instructions for the administration's interactions with the IMF would "interfere with my constitutional authority to conduct foreign relations."

House Financial Services Committee Chairman Barney Frank said he had worked hard to get funding approved for the IMF. "The notion that the administration can take the money and pick and choose what it wants to do with the conditions (placed on it) is unacceptable," Frank declared.

Last month, Congress approved $108 billion in credit lines for the IMF as it helps countries with the economic crisis.

The current House legislation includes guidance about how the U.S. representative to the IMF and World Bank should vote on issues like health care. It also requires the U.S. representative to the IMF to oppose allowing countries that have supported acts of terrorism to withdraw hard currency like U.S. dollars, Japanese yen or euros from the IMF.

"I think we can all agree that now more than ever we need to keep a watchful eye on how we spend money," said Republican Representative Kay Granger, who authored the IMF provisions.

The administration has opposed the IMF restrictions.

The House also approved an amendment removing the president's ability to waive a provision blocking aid for Saudi Arabia. "We want to tie the president's hands," said the provision's Democratic sponsor, Anthony Weiner of New York.

(Editing by Doina Chiacu)