The Senate today approved a federal budget package for fiscal 1999 allowing the Clinton administration to raid more than $2.4 billion in District of Columbia pension fund assets for police, firefighters and teachers to fund a White House education initiative and other federal programs instead. The House approved the federal budget legislation last night. President Clinton is expected to sign it into law today.
The $2.4 billion in District of Columbia Retirement Board assets were scheduled to be transferred to the U.S. Treasury under a D.C. bailout law enacted last year that relieves the nation's capital of some of its financial obligations. The budget deal still leaves the federal government on the hook for pension liabilities for retired District of Columbia police, firefighters and teachers.