Congress backs aid funds for Iraq

US troops in Iraq are coming under attack on a daily basis

The United States House of Representatives has backed a $87.5bn package for Iraq and Afghanistan, in what is being described as an important victory for President George W Bush.

Congress voted 298-121 in favour of the White House's proposals, ignoring a Senate provision that half of $18.6bn earmarked for Iraq's reconstruction be given as loans.

Almost $65bn will be spent on military operations in Iraq and Afghanistan.

Congressional negotiators gave their provisional backing to Mr Bush shortly after midnight on Thursday, after he had argued that loans would burden Iraq with more debt and hamper stabilisation efforts.

The president had said he would veto the bill if loans were included.

The aid package is expected to be approved by the Senate on Monday.

'Gritted teeth'

Many Democrats and Republicans who voted in favour of the aid package said they did so reluctantly.

Republican Zack Wamp said before the vote: "I'm going to grit my teeth and vote yes tonight and say that we cannot afford to fail in Iraq."

Opponents are uncomfortable with the financial burden being placed on American taxpayers and had argued that Iraq's oil revenues should help pay the cost of reconstruction.

The aid for Iraq includes:

• $5.6bn for the electric sector

• $4.3bn for water resources and sanitation

• $3.2bn for security and law enforcement

• $1.9bn for oil infrastructure

Critics said there was no way of controlling how the money would be spent.

"We are going to be held accountable for this vote for a long time," said Democrat Representative David Obey.

Constituents "are going to be asking us about the loans, they are going to be asking us whether or not there is adequate protection for taxpayer money".

Republican Roy Blunt, who supported the bill, said: "The funding package is an essential part of the Iraq exit strategy.

"The sooner we bring prosperity back to the region, the sooner we bring our sons and daughters home safe."

Despite winning the vote, the Bush administration is facing increasing criticism over Iraq, where the number of US troops killed in hostile action since Mr Bush declared major combat over on 1 May is now more than those killed during the war itself.

The funding package also includes:

• $1.2bn for rebuilding Afghanistan

• $245m for peacekeeping efforts in Liberia

• $44m for a secure embassy in the Afghan capital, Kabul

• $50m to reward anyone providing information leading to the capture of ousted Iraqi leader Saddam Hussein.