Congress hands Bush $87.5b for Iraq

After one of the bloodiest days for US forces in Iraq, the US Senate on Monday gave final congressional approval to President Bush's request for $87.5 billion legislation to finance that country's occupation and reconstruction. Congress sent Bush the bill -- that gives him almost everything he sought to fund operations in Iraq and Afghanistan through much of next year -- the day after 16 US soldiers were killed when insurgents shot down their Chinook helicopter near Falluja.

Senators passed the biggest emergency spending bill in history by a voice vote, ending weeks of bitter debate and a near rebellion among some of Bush's fellow Republicans who felt Iraq should repay part of the aid with its oil revenues.

Bowing to Bush, lawmakers provided all of the nearly $20 billion reconstruction money as a no-strings grant, although a number of Republicans joined Democrats in advocating that at least half of the rebuilding money be in the form of loans.

The White House had threatened to veto the entire bill if it required any repayment, arguing that would undermine efforts to stabilise Iraq.

Bush said in a statement that the bill's passage "underscores that America and the world are united to prevail in the central front in the war on terror by helping build a peaceful, democratic, and prosperous Iraq."

He said the United States was "being tested" by forces who "want America and its coalition partners to run so the terrorists can reclaim control."

The bill's passage was never in doubt, as lawmakers said the United States had no option but to keep forces in Iraq. But their agreement to bypass a usual roll-call vote showed the measure's political sensitivity as many lawmakers did not want to be viewed as endorsing Bush on Iraq.

The House of Representatives on Friday overwhelmingly passed the final bill with $64.7 billion for US troops in Iraq and Afghanistan and $18.6 billion to rebuild Iraq.

This follows on $79 billion Congress approved in April mostly for Iraq and Afghanistan operations.