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. Last Updated: 07/27/2016

House Bill Cuts World Bank's Cash

WASHINGTON -- The U.S. House of Representatives approved a bill Tuesday that would cut overseas spending and slash funding for the World Bank, a measure President Bill Clinton's administration has vowed to veto.

The $12.6 billion foreign operations bill, passed by a vote of 385-35, would decrease the World Bank's lending program for the world's poorest countries by $232 million and also cut off aid to foreign groups engaged in abortion-related services.

The measure came up almost $2 billion short of the amount the Clinton administration requested. The Senate has passed a version of the bill with less severe cuts.

Republicans said the $12.6 billion foreign operations bill was less important to Americans than cutting taxes, fixing Social Security and Medicare or reducing the national debt.

The World Bank was one of the bill's biggest losers. The bill would cut U.S. funding for its concessional loan program from $800 million last year to $576 million.

As well as budgetary constraints, the bill cited a recently approved loan by the World Bank to China as a reason for the lower funding. The contentious loan, to resettle poor farmers to an area Tibetans regard as traditionally theirs, was approved in June despite U.S. opposition and an outcry from Tibetan activists.