WASHINGTON -- Flinching in the face of a veto threat, Democratic congressional leaders neared agreement with the Bush administration yesterday on legislation to pay for the Iraq war without a troop withdrawal timeline.
Several officials said the emerging $120 billion compromise would include as much as $8 billion for Democratic domestic priorities -- originally resisted by the White House -- such as disaster relief for Hurricane Katrina victims and farmers hurt by drought.
The bill would also include the first increase in the federal minimum wage in more than a decade. Both the House and Senate have passed measures raising the current level of $5.15 an hour to $7.25 an hour in three separate 70-cent increases over 26 months. Those measures included modest tax breaks, mainly aimed at helping businesses that hire low-skilled or handicapped workers.