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Loan Guarantees For Steel, Oil and Gas

© Bryan Johnson

Next week, Congress will consider legislation that would provide over $1 billion in loan guarantees for U.S. steel, oil and gas companies.

Senator Robert Byrd, the West Virginia Democrat, tried to put his legislation into the supplemental spending bill that provided emergency aid to U.S. farmers and hurricane victims. But that attempt was foiled by opponents, primarly Senator Don Nickles, the Ohio Republican, who feel that the legislation will benefit only a few small companies.

Now, the Senate is expected to vote on the measure June 15 to determine whether to consider the legislation at all. Byrd may try to tack the bill onto the Defense supplemental spending bill, which provides money for, among other things, the Kosovo operations.

Still, there are no assurances that the Senate will agree to such a move. Even if they do, the Senate and House must meet in a conference committee to work out differences in the two bills. If the Senate has a loan guarantee provision for steel, oil, and gas, it wold become a major source of controversy since the House has no such measure, nor is it likely to support it.

However, the House does want the defense supplemental to pass, since it has the much desired military pay increase, as well as increases in certain defense programs.