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DRUDGE REPORT FLASH 2002�

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Budget Cap Has CIA Facing Cash Crunch
Mon Jan 13 2003 10:32:32 ET

The Central Intelligence Agency in the coming months faces a cash crunch aggravated by a White House decision to finance a portion of the agency's budget through a special $10 billion contingency reserve for military and intelligence activities, the WALL STREET JOURNAL reported on Monday.

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The fund was part of President Bush's budget request last year, but Congress delayed approval last fall because the Pentagon failed to give details on how its portion of the $10 billion would be spent. But that complaint wasn't leveled at intelligence agencies, whose share represented $2 billion to $3 billion. That money is even more important now, given the tempo of their activity overseas, and in the CIA's case, it surprisingly included money for sensitive continuing operations.

The issue underscores the growing tension between the Bush administration's aggressive foreign-policy goals and its insistence on a $751 billion cap on government-wide appropriations for the fiscal year that began Oct. 1. . Critics argue that the $751 billion figure is increasingly unrealistic, and that the administration keeps it alive even if it means delaying addressing the needs of agencies such as the CIA.

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