White House rejects Dems' compromise on war funding, domestic spending

Congressional Democrats are poised to hand President Bush upward of $50 billion in Iraq funding with no strings attached, and they've already offered to cut $11 billion from their domestic spending bills.

But in an unusual Saturday afternoon statement, the White House said it would veto any omnibus spending bill that exceeds the president's domestic spending request, a clear sign that the administration is unwilling to compromise on appropriations as the Christmas holidays approach. The House is expected to vote Tuesday on a $520 billion bill that wraps all domestic spending into one package, along with billions for Iraq with no troop withdrawal conditions, and the Senate is likely to follow with a vote later in the week.

Still, White House Budget Director Jim Nussle said Saturday it's too much money for domestic programs - and not enough for the war.

"If Congress insists on sending the president a budget-busting bill they know he will veto and that will not become law, they should also pass a continuing resolution that keeps the government running and provides the troops in the field the funds they need," Nussle said.

It's not clear if Democrats will further give in to White House demands and cut more from their domestic spending bills, or whether they'll challenge him to veto an omnibus funding measure for virtually every agency of the federal government. Democrats were hoping that Bush would embrace a compromise on domestic spending that met the White House halfway on its spending figures if Congress gave the administration war money with no conditions.

If Democrats cut their spending bills further, they risk alienating even more in their own party who are already disappointed with the proposal to drop demands for troop withdrawal from Iraq.

"This is the kind of reckless and irresponsible statement that the American people have come to expect from this White House," said Jim Manley, spokesman for Senate Majority Leader Harry Reid (D-Nev.). "While the president and his Republican allies continue to stubbornly cling to a failed war policy, [the] Democrats will continue to push for a responsible way forward."

Senate Minority Leader Mitch McConnell (R-Ky.), who has been asking for Democrats to compromise on spending, will stick with the president, at least for now.

"While I appreciate the movement in the right direction on the part of congressional Democrats toward concluding this Congress, we must not overspend the taxpayers' money and we must protect our troops," McConnell said.

UPDATE: Reid and House Speaker Nancy Pelosi (D-Calif.) have responded this afternoon with a strong statement, ripping the president for being unwilling to compromise.

"Although he admits he has not even seen the bipartisan legislation that would fund critical priorities such as border security, homeland security, and putting more police officers on the street, the president has recklessly threatened to veto it," Reid and Pelosi said in a joint statement. "For a president already lacking in credibility, it is dangerous to issue veto threats based on press reports alone."