The Power of the Purse: Congress Exercises Oversight

It costs roughly $5 billion dollars every month to maintain U.S. operations in Iraq and Afghanistan.

Money is running out quickly, so President Bush asked Congress for supplemental funding in May 2004. About a month later, on June 2, 2004, both houses complied, adopting the fiscal 2005 defense authorization bill. The bill approves $25 billion more for war operations, and the funds are expected to last from October 2004 through early 2005.

So far, we’ve spent $191 billion for the wars in Iraq and Afghanistan and for increased homeland security. And Bush is expected to ask for another $50 billion for next year’s Iraq and Afghanistan costs. The grand total is likely to come to somewhere around $300 billion before the end of 2005.

No blank checks

But Congress has made it clear that it’s not signing any blank checks. Both houses have put stipulations on the funding.

The Senate bill divides the money into separate accounts, though fairly large ones, and does not allow for money to be transferred among them without Congress’ consent. One of the largest accounts, $14.5 billion, is designated to Army operations and maintenance. One of the smallest, $2 billion, is for salaries and other personnel costs. In the Senate version, Bush also gets $2.5 billion to spend as he sees fit after notifying Congress.

The House bill regulates the money more specifically, giving the Bush administration even less say in how the money is spent. This is surprising since the House has a larger Republican majority than the Senate and typically backs the Bush administration more readily.

House v. White House

The White House is not pleased with the House version of the bill. Joel Kaplan, deputy director of the White House Office of Management and Budget, told reporters that the Bush administration plans to work with the House to reformat its bill.

The House version divides the money into 22 separate accounts and, like the Senate, doesn’t allow the White House to transfer money among them. Unlike the Senate version, the House bill is comprised of detailed categories, like $320 million for small arms and combat equipment, $538 million for body armor, $873 million for armor for Humvees and other vehicles, and $3.9 billion for soldiers’ pay, including salaries for 13,000 new troops.

The House version makes it difficult for the White House to shift funds, and the Bush administration says it needs more flexibility to meet military forces’ changing needs.

Is it normal for Congress to determine how money should be spent, or is Congress making a statement about Iraq and Afghanistan?

Oversight - It’s Congress’ job

It’s standard for Congress to outline and control federal spending; it’s one of the main responsibilities of the legislative branch. In fact, Congress would not be doing its job if it were not dictating, on some level, the spending in Iraq and Afghanistan.

Congress’ oversight of federal spending - the power of the purse - provides the people with a direct connection to their tax dollars. By choosing representatives that mirror your values and philosophy, you help to determine how your money will be spent.

The next step

Although the defense authorization bill has passed the House and the Senate, Congress has not fully endorsed the $25 billion. For that to happen, a group of representatives and senators, called a conference committee, must arrive at a compromise between the House and Senate bills. This compromise, called a conference report, must then be passed by both houses of Congress and signed by President Bush.

Many bills are killed in these final stages, but the defense authorization bill is likely to pass. Both Republicans and Democrats recognize the need for additional funding for operations in Iraq. The Senate, which rarely hands down a unanimous vote, passed its version 95-0.

Any conference committee argument is likely to center on the House’s stringent regulation of the funds. The White House will certainly attempt to influence the committee to allow Bush, as Commander-in-Chief, more power over Iraq spending.

What do you think?

How should Congress control spending for operations in Iraq and Afghanistan? Should the White House have more leeway to transfer funds among military accounts? Discuss this issue with other WomenMatter readers in one of our online forums.

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Update Posted on: 6/9/2004