OVERNIGHT DEFENSE: Senate GOP blocks war fund limits

by Martin Matishak and Kristina Wong - 06/09/15 6:23 PM ET

THE TOPLINE: Senate Republicans on Tuesday rejected an attempt by Democrats to prevent a defense policy bill from using a Pentagon war fund to skirt spending caps.

Sen. Jack Reed (R.I.), the ranking member on the Senate Armed Services Committee, had proposed an amendment that would have fenced off $38 billion until budget caps were lifted on non-defense spending too.

The amendment failed 46-51, which Sen. Charles Schumer (D-N.Y.) called “a harbinger of bad things to come.”

{mosads}The policy bill, which authorizes Pentagon policy and spending has garnered a veto threat from the White House. The administration argues that if Congress wants to increase defense spending, it must also increase non-defense spending.

Armed Services Chairman John McCain (R-Ariz.) said he’s not a fan of using the war fund, known as Overseas Contingency Operations, to skirt the caps, but it is better than nothing.

“OCO was not the right or best way to do business, [but] it would be a disaster if this $38 billion is removed,” he said.

Senate Democrats say they are not sure whether they would filibuster the authorization bill, but that they are drawing the line with a defense appropriations bill that is expected to hit the Senate floor after the policy bill is cleared.

Schumer argued that the passage of Reed’s amendment would have headed off the veto, but predicted Republicans would ultimately lose the fight.

“They’ll lose and they’ve lost each time they’ve tried this folly,” he said. “Sooner or later they’re going to have to back off.”

DEFENSE SPENDING ADVANCES: Meanwhile, the Senate Appropriations Defense subpanel unanimously approved nearly $576 billion in Pentagon spending for the next fiscal year, setting up a funding fight.

The legislation recommends $489.1 billion in base Pentagon spending and $86.8 billion for the war fund.

Democrats say they will not allow any appropriations bills to pass unless funding for non-defense domestic programs is raised as well.

Sen. Dick Durbin (Ill.), the top Democrat on the defense subcommittee, suggested lawmakers convene a budget summit to hammer out a deal.

However, Senate Majority Leader Mitch McConnell (R-Ky.) quickly shot down the idea, and Senate Democrats predicted the GOP would lose the looming showdown.

The Senate spending bill provides $213.9 billion for Department of Defense operation and maintenance accounts; it funds around 1.3 million active-duty troops and a reserve component force of around 811,000.

It also funds a 1.3 percent pay raise for military personnel and $300 million in training and assistance to Ukraine’s military forces to defend against Russian aggression.

PENTAGON EXPANDS LGBT PROTECTIONS: The Pentagon updated its military equal opportunity policy to protect lesbian, gay, bisexual and transgender (LGBT) service members from discrimination and harassment.

Defense Secretary Ashton Carter said sexual orientation has been added to the anti-discrimination policy to bring the military in line with the federal government.

“Recognizing that our openness to diversity is one of the things that have allowed us to be the best in the world, we must ensure that everyone who’s able and willing to serve has the full and equal opportunity to do so,” Carter said during a Defense Department Pride Month Ceremony.

The change comes after senators sent a letter to Carter last month urging him to bring the policies in line with the Pentagon’s 2014 Human Goals Charter.

Carter said Tuesday that diversity and inclusion are critical for building the military force of the future.

“Young Americans today are more diverse, open, and tolerant than past generations, and if we’re going to attract the best and brightest among them to contribute to our mission of national defense, we have to ourselves be more open, diverse, and tolerant, too,” he said.

“It’s the only way to compete in the 21st century.”

BENGHAZI CHAIR DENIES PARTISANSHIP: The head of the House Select Committee on Benghazi brushed off criticism from Democrats that he and the GOP are fundraising off the deadly 2012 attacks.

In a speech over the weekend, Rep. Trey Gowdy (R-S.C.) touted the panel working with appropriators to withhold operational funding from the State Department if the agency didn’t turn over additional documents faster. He made the comments in an address to the National Federation of Pachyderm Clubs

On Monday, Rep. Elijah Cummings (Md.), the top Democrat on the Benghazi panel, chastised Gowdy for mentioning the investigation at what he considered a political event.

On Tuesday, Jamal Ware, a spokesman for the select committee, dismissed Cummings’ comments.

Ware added that the panel had uncovered “poor record keeping and the failure of transparency at the State Department” and that many media outlets have reported on the funding threat.

“Chairman Gowdy noted this fact in his speech,” Ware said. “If some do not see the importance of government transparency for the people and don’t think it should be mentioned, then that is their own issue, but Chairman Gowdy believes in it.”

IN CASE YOU MISSED IT

-GOP links cyber fight to defense bill

-McCain, Feinstein seek to add anti-torture measure to defense bill

-State Department: We do have a strategy to fight ISIS

-Rumsfeld: ‘Unrealistic’ for Bush to try to build democracy in Iraq

-CIA chief made secret trip to Israel ahead of Iran deadline

Please send tips and comments to Kristina Wong, kwong@digital-staging.thehill.com, and Martin Matishak, mmatishak@digital-staging.thehill.com.