Senate Passes $2.8 Trillion Budget Plan for ’07
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.

WASHINGTON – The Senate yesterday passed an election-year budget plan forsaking President Bush’s tax cuts and Medicare curbs, hours after lifting the ceiling on the national debt to $9 trillion.
The spending blueprint, approved 51-49, little resembles Bush’s proposal last month for the budget year that begins October 1.
To the disappointment of budget hawks, the Senate’s measure would break Mr. Bush’s proposed caps on spending for programs such as education, low-income heating subsidies and health research.
Vice President Cheney was on hand for a possible tie-breaking vote, but that proved unnecessary.
Senators earlier voted 52-48 to send Mr. Bush a measure that would allow the government to borrow an additional $781 billion and prevent a first-ever default on Treasury notes.
As a result, the government could pay for the war in Iraq without raising taxes or cutting popular domestic programs.
The House, meanwhile, overwhelmingly approved a $92 billion measure that would provide more money for the war in Iraq and hurricane relief for the Gulf Coast.
The budget blueprint advanced without Mr. Cheney’s vote in the Republican-led Senate when Democratic Senator Mary Landrieu supported the plan after winning concessions to help her hurricane-damaged state of Louisiana and the Gulf Coast.
She won inclusion of a proposal that could provide up $2 billion a year for levee and coastal restoration projects. The money would come from auctioning television airwaves to wireless companies and from potential oil lease revenues from exploration in an Alaskan wildlife refuge.
Among the specific votes for the budget plan were:
* $3 billion more for heating subsidies for the poor. It passed 51-49.
* $7 billion more for education, health and worker safety accounts. It passed 73-27.
* $1.2 billion more for aviation security and stopping Bush’s proposed increase in airline ticket taxes. They advanced by voice vote.
* $1 billion more for benefits for military survivors.
The votes yesterday set up a confrontation with the House, which is certain to oppose the additional spending.
In fact, the Senate’s moves appear to make it less likely that Congress will settle on a final budget plan this spring. House Republicans will not release their budget until after next week’s congressional recess.
The votes dismayed deficit hawks such as Senate Budget Committee Chairman Judd Gregg, a Republican of New Hampshire. He already had decided to drop Mr. Bush’s proposals to cut the growth of Medicare, strengthen tax-free health savings accounts and advance legislation to make permanent his 2001 tax cuts.
The debt limit increase was the fourth of Bush’s presidency, totaling $3 trillion. With the budget deficit expected to approach $400 billion for both this year and next, an additional increase in the debt limit almost certainly will be required next year.