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Friday August 6, 1999

Congress moves to cut Israel aid in long-term plan

MATTHEW DORF
Jewish Telegraphic Agency

WASHINGTON -- Congress is on its way to reducing foreign aid to Israel for the second year in a row. The cut is part of a plan worked out with the Jewish state to end economic aid by the year 2009.

The House of Representatives voted 385-35 on Tuesday for a $12.6 billion foreign aid bill, which includes $2.88 billion for Israel, $2 billion for Egypt and $325 million for Jordan.

As has been the case in the past, aid to the Palestinians was not specified in the bill but is expected to continue at about $100 million a year.

The Senate passed a similar bill June 30 by a 97-2 vote. Members of the House and Senate will meet in the coming weeks to hammer out differences between their measures, which will determine foreign aid for the fiscal year 2000, which begins Oct. 1.

The measure could draw a presidential veto because it restricts funding for groups that work in other countries to liberalize abortion laws.

Clinton has also threatened a veto because the bill cuts this year's foreign spending by $715 million and is almost $2 billion less than his request for next year.

Even with a veto, however, the foreign aid package would be passed as part of other legislation.

The money in the bill for Israel follows through on a deal with the Jewish state to reduce its dependence on U.S. economic aid while increasing military assistance.

The agreement, which President Clinton and Israeli Prime Minister Ehud Barak put into writing last month, phases out economic aid to Israel over a 10-year period by reducing the assistance by $120 million a year.

At the same time, military aid will increase by $60 million a year.

In this year's foreign aid bill, Israel would receive $960 million in economic aid and $1.92 billion in military assistance. The bill also includes $60 million to aid Israel in resettling Jews from the former Soviet Union.

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