(Corrects Pakistan aid total to $1 billion from $1.4 billion)

* Legislation includes $1 billion in aid for Pakistan

* Lawmakers bicker over transferring Guantanamo detainees

By Jeremy Pelofsky

WASHINGTON, May 7 (Reuters) - The U.S. House Appropriations Committee on Thursday approved a $96.7 billion measure to fund the wars in Iraq and Afghanistan as well as boost aid to the struggling Pakistan government, a close U.S. ally.

The legislation will fund the war costs through Sept. 30 and provide $1 billion in economic and security aid to Pakistan which is trying to fight off a militant Taliban insurgency that is spilling over the border from Afghanistan.

The Democratic-controlled panel also agreed to require President Barack Obama to submit to Congress by Oct. 1 a plan on how his administration will deal with terrorism suspects held at the U.S. prison at Guantanamo Bay, Cuba.

The biggest outlays in the legislation include $44.8 billion for operations and maintaining U.S. forces in Iraq and Afghanistan as well as $23 billion to refurbish or replace equipment that has been damaged or worn out in the two wars.

Already included in that is some $3.1 billion for purchasing eight Boeing Co C-17s and 11 Lockheed Martin C-130 transport planes. Lawmakers rejected an attempt to include $848 million for buying several more of the planes.

The legislation also includes $597 million for Pakistan in the form of economic aid, $100 million more than Obama sought, as well as $400 million to help build the counterinsurgency capabilities of Pakistan's security forces.

PLANS BEFORE MONEY

Obama had originally requested $84.3 billion for the wars and in other aid. The bill will now go to the full House of Representatives next week and the Senate is expected to begin working on its version of the legislation next week as well.

Any differences between the two chambers would have to be worked out before it could become law.

However, much of the debate on the bill centered on Obama's request for $80 million to close Guantanamo Bay. Democrats declined to include the money and asked the White House to submit a plan first.

Republicans tried to put specific language to bar the administration from bringing any of the terrorism suspects held at the prison to U.S. soil, however the panel rejected it on a party-line vote.

"Don't bring them to America," said Representative Todd Tiahrt of Kansas.

Despite the bickering, the Pentagon wants Congress to act before the end of the month, saying it may run out of money by July for military operations. Defense Secretary Robert Gates also said aid for Pakistan could run out later this month.

Appropriations Committee Chairman David Obey said he was skeptical of the administration's plans on Afghanistan and Pakistan and added language to the bill requiring a report early next year assessing progress. (Editing by Cynthia Osterman and David Storey)

AlertNet news is provided by