becoming law.

A $261-billion defence budget that cuts off Department of Defence funding for the Base after September 1, 1995 was passed by the House of Representatives on Monday in a 273-135 vote.

The Senate is expected to vote on the package later this week before sending it to the president.

The bill instructs the Secretary of Defence to devise a closure plan for the Base by March 1.

While stating that no more Defence funds could be spent on the Base after September of 1995, it also says support for airfield operations could be provided after that date, as long as the Americans were reimbursed.

The Bermuda Government is exploring cost sharing possibilities with the North Atlantic Treaty Organisation and others as it attempts to minimise the impact.

In addition to closing the American base in Bermuda, the bill endorses a more restrictive version of President Clinton's policy on homosexuals serving in the military.

The budget for the fiscal year that began Oct. 1 is $2.6 billion less than the amount Clinton proposed and $12 billion below last year's level.

"This report reflects a well-reasoned and prudent approach for funding defence programmes,'' said Rep. Ron Dellums, D-Calif., of his first military budget since succeeding Defence Secretary Les Aspin as House Armed Services Committee chairman.

But the panel's ranking Republican, Rep. Floyd Spence of South Carolina, said the cuts only represent one-tenth of what the Clinton administration plans, and "the next few years we're facing disaster.''