House passes fiscal 2008 funding compromise

By Richard Cowan

WASHINGTON (Reuters) - The House of Representatives on Monday passed a $515.7 billion budget compromise to keep most of the U.S. government running through September 2008 and position President George W. Bush to obtain a good chunk of new Iraq war funds he requested.

The House approved the fiscal 2008 money for all federal agencies except the Pentagon, which already has received a $460 billion check from Congress for its day-to-day operations, not including combat.

As early as Tuesday or Wednesday, the Senate could approve an identical measure except for one key detail: While the House-passed bill prohibits any new money for the unpopular war in Iraq, Senate Republicans are expected to attach about $70 billion for the Iraq and Afghanistan wars.

The House-passed bill contains $31 billion just for Afghanistan.

Bush has demanded that the budget bill contain at least some money for the Iraq war, without any of the conditions for ending it that Democrats have been seeking.

"I'm pleased to report that we're making some pretty good progress toward coming up with a fiscally sound budget," Bush said in a speech in Fredericksburg, Virginia.

White House spokeswoman Dana Perino again reminded Congress that without unconditional funds for the Iraq war, "the president would veto the bill."

Reflecting fellow Democrats' disappointment with Bush's refusal to allow more investment in their domestic priorities, House Appropriations Committee Chairman David Obey of Wisconsin called the overall spending compromise "totally inadequate."