The $500 billion dollar bill not only contains the FY99 appropriations for various departments of the federal government but also includes tax relief provisions and $20 billion in emergency spending on increased military readiness, farm disaster aid, the year 2000 computer problem, combating terrorism and illegal drugs and providing disaster relief to areas devastated by Hurricane Georges and other natural disasters.

"Absolutely critical to Oklahoma's economy--largely supported by agriculture--is the $6 billion package of ag disaster aid and several tax relief provisions affecting producers," Lucas said. "Our producers and those who depend on them have suffered through an atrocious year for agriculture. This aid, along with the expedited market transition payments some producers have opted to use, should really serve as a much-needed shot in the arm."

"Additionally, this legislation provides $6.8 billion for the military," Lucas said. "This Administration has allowed our defense budget to shrink to dangerous levels. Real defense spending is in a 14-year decline that has ill-equipped men and women protecting our country. Peacekeeping operations and other overseas commitments have increased and continue beyond expectations.

"These defense provisions start us down a path of reversing this hazardous decline," Lucas continued. The agriculture disaster relief package includes:

*Single Year Disaster: $1.5 billion to assist producers who have been hit by crop losses in 1998

*Multi-Year Disaster: An additional $875 million to provide assistance to producers who have suffered multiple-year crop losses.

*Livestock Feed Assistance: A $200 million program of livestock feed assistance will provide cost share assistance to livestock producers who lost their 1998 supplies of feed to disaster.

*Market Loss Assistance: $3.057 billion in payments to producers eligible for Freedom to Farm contracts. This is a one-time payment equivalent to approximately 50% of the market transition payment received by a producer for FY98. Specifically, this provision will send $76 million into Oklahoma.

Tax provisions beneficial to ag producers are as follows: (1) Permanent extension of income averaging for farmers; (2) shield farmers from paying tax on 1999 farm program market transition payments until the year in which the payments are actually received versus when the option of payment is available; (3) increase deduction of health insurance for self-employed individuals--presently 45%--to 60% in 1999, 70% in 2002 and to 100 percent for taxable years beginning in 2003 and thereafter; (4) five-year net operating loss carryback, meaning a farming operation can carryback a net loss in its operations to up to five years prior when the operation pays federal income taxes.

"I am extremely pleased with the benefits these tax provisions will bring to family farms in Oklahoma," Lucas said.

The above tax provisions are included in the $9.2 billion tax package--included in this omnibus bill--that passed once before in the House a few weeks ago. In addition to the pro-agriculture tax provisions, the bill also contains provisions to extend the research tax credit for businesses; incentives for hiring former welfare recipients; permanent tax deduction for contributions to private foundations of stock that has appreciated in value; extension of the Generalized System of Preferences; increases in the current cap on private activity bonds, helping local governments finance housing, school loans and industrial development as well as other provisions.