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January 03, 2008

While Congress Is Away, Troops Go Without Bonus Pay

Thanks to a surprise veto, soldiers will go without bonus pay.Don't blame lawmakers, though. Blame this guy.

Without warning, President Bush killed the FY08 Defense Authorization Act that was sent to the Oval Office on Dec. 19. On Dec. 28, with Congress long gone for the holiday recess, Bush announced that he would use a pocket veto on the bill because it contained a provision (Sec. 1083) that he said would impede reconstruction efforts in Iraq.

Seeking to explain why he was blindsiding Congress on the bill, Bush said, "While my administration objected to an earlier version of this provision in previous communications about the bill, its full impact on Iraq and on our relationship with Iraq has become apparent only in recent days. Members of my administration are working with members of Congress to fix this flawed provision as soon as possible after the Congress returns."

Most members were out of town when the White House announced Bush was not going to sign the bill. Senate Armed Services Committee Chairman Carl Levin said that lawmakers won't be able to address the problem section until the Senate is back in session, which is tentatively scheduled to happen on Jan. 22.

Through an executive order, Bush implemented a 3-percent pay raise for service members effective yesterday. That's slightly less than the raise Congress had approved. And bonus payments for Army personnel and enlistees will cease until a new bill is passed and then signed.

"It is unfortunate that the administration failed to identify the concerns upon which this veto is based until after the bill had passed both houses on Congress and was sent to the president for signature. I am deeply disappointed that our troops and veterans may have to pay for their mistake and for the confusion and uncertainty caused by their snafu," said Levin, a Michigan Democrat.

John Warner, the ranking Republican on the committee, was not immediately available for comment. A spokeswoman for Levin said it was unclear how the committee would proceed on the bill or what lawmakers might be willing to do to get a passable version on Bush's desk ASAP.

In explaining his decision, Bush said that Sec. 1083 could render the Development Fund for Iraq (DFI) and the Central Bank of Iraq (CBI) vulnerable to asset-freezing or lawsuits. The section "potentially would place these crucial protections of Iraq's core assets in immediate peril, by including a provision that might be misconstrued to supersede the protections I have put in place and to permit the judicial attachment of these funds. Iraq must not have its crucial reconstruction funds on judicial hold while lawyers argue and courts decide such legal assertions," Bush said.

And later, in a background press briefing, a National Security Council official explained, "Section 1083 would allow Iraqi assets to be attached and frozen solely upon the filing of a claim in court, and that would be up to the amount of damages claimed in a lawsuit even before there was any consideration of the merits of the claim, or the amount of any damages asserted by plaintiff's counsel."

"The section also would revive most, if not all, of the previously dismissed lawsuits against Iraq for former Saddam-era acts, and allow lawyers the ability to re-file and re-litigate those claims," the official later added.

The Bush administration's decision to shield the Iraqi government and its assets from claims brought by victims of Saddam Hussein's rule has been controversial. But disagreeing lawmakers haven't pushed back very hard on the matter, which could mean Congress will be able to quickly amend and pass a new version of the authorization.

Army Times reported today that new bonus agreements signed on or after Jan. 1 would include a stipulation guaranteeing a soldier's eligibility for future bonuses. But the bonuses will only be made if approved in the new legislation. See the report for a list of the affected bonus programs.

Bush called on Congress to ensure the pay raise and bonuses in the new authorization bill would be retroactive to Jan. 1. During the background briefing, deputy White House press secretary Tony Fratto said the administration had objected to the provision during the long period of negotiations with Congress on the bill, but acknowledged that the administration had given no indication it might veto the bill because of the problem provision.

-JANE ROH

Posted at 4:30 PM
Posted to: Bush Administration, Congress, Military, President Bush
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