Iraq: Grant or Loan?

Iraq: Grant or Loan?

Senate Defies Bush On Iraq Assistance (washingtonpost.com)

Defying weeks of intense White House lobbying, a narrowly divided Senate voted last night to convert half of President Bush's $20.3 billion Iraq rebuilding plan into a loan that would be forgiven if other donor nations write off the debt incurred by the ousted government of Saddam Hussein.

The 51 to 47 vote came an hour after the Republican-controlled House defeated a similar loan amendment, 226 to 200, setting up potentially difficult House-Senate negotiations next week as lawmakers rush to conclude a final spending plan for Iraq before an international donors conference next Thursday in Madrid.