Senate Lifts Offshore Drilling Ban In Huge Spending Bill

Senators have passed a spending bill that aids Gulf Coast disaster victims and subsidizes federal loans for automakers. President Bush is expected to sign the measure despite some reservations.

The $634 billion bill provides money to keep the government running until the next president takes office.

The 78-12 vote Saturday also lifts a quarter-century ban on oil drilling off the Atlantic and Pacific coasts. That's a big victory for Republicans.
The Democrats have once again caved into Bush's demands.

Republicans say ending the drilling ban should lower gasoline prices. Democrats say it won't mean additional oil production for years.
Then why did lift the ban?

The lifting of the offshore oil drilling moratorium does not mean drilling is imminent. But it could set the stage for the government to offer leases in some Atlantic federal waters as early as 2011.

The low-interest loans for automakers are intended to help the companies develop technologies and retool factories to meet new standards for cleaner and more fuel-efficient cars.

After hard lobbying, automakers won up to $25 billion in low-interest loans to help them develop technologies and retool factories to meet new standards for cleaner and more fuel-efficient cars.

The legislation also contains 2,322 pet projects totaling $6.6 billion, according to Taxpayers for Common Sense, a watchdog group. That included 2,025 in the defense portion alone that cost a total of $4.9 billion.