As House Democrats seek ways to cover the cost of proposed education benefits for soldiers, veterans' groups are lobbying the party's conservative wing to give the new entitlement program a pass.

"They can waive the budget rules and pass it just like they have done on other important issues where they weren't able to find the funding," said Steve Robertson, the American Legion's legislative director.

"If we can waive budget rules to bail out banks, and if we can waive budget rules to bail out savings and loans institutions, I think they can take care of the veterans when they return from military service," he said.

The Blue Dog Coalition, made up of fiscally conservative Democrats, is demanding enforcement of the pay-as-you-go rule that requires revenue increases or spending cuts to offset the cost of any new mandatory spending -- such as the $51.8 billion, 10-year price tag for the new GI Bill that Democratic leaders want to attach to the supplemental spending package for military action in Iraq and Afghanistan.

Democratic leaders and Blue Dogs enter this week in a standoff over whether the cost of the expanded benefits must be offset. The dispute, along with Republican delaying tactics, forced the leadership to delay action on the supplemental last week.

Rep. Jim Cooper of Tennessee said Democratic leaders told him and other Blue Dogs to propose offsets by the end of the week, but not to bother even suggesting tax increases or cuts in Medicare spending.

But the Blue Dogs argue that it is the leaders who want to include the education benefits in the war spending package who should find a way to pay for the program.

One budget watchdog sided with the Blue Dogs. "I think the burden should be on those who put forward a new program," said Robert L. Bixby, executive director of the Concord Coalition.

Veterans' advocates have mobilized to call and visit lawmakers, urging them to support the additional spending -- and warning them that their votes on the issue will be closely watched.

Many Blue Dogs represent districts with military bases and large populations of military families. One veterans' group official said that Blue Dogs who stand in the way of the expanded education benefits will almost certainly be targeted by hostile campaign advertisements.

"They are attuned with the consequences," said the official, speaking on condition of anonymity. "I believe they will come to terms."

But the veterans' groups are themselves divided over whether the education benefit stands a better chance of becoming law if it is part of the spending bill or is considered later as stand-alone legislation.

American Legion officials argue that in an election year and a time of war, the political appeal of the veterans' benefit would be enough to propel a standalone bill through Congress and onto President Bush's desk.

Attaching the benefits measure to the supplemental, Legion officials said, has delayed funds for the troops in the field as the fight over offsets goes on.

Adding the program to the supplemental could increase the cost of the measure and increase the chances of a veto showdown with the president, they noted.

"Right now, we are asking Congress to pass a clean supplemental, and at the same time we are saying pass the GI Bill. Those are two distinct messages," Robertson said.

However, other veterans' groups view the supplemental as the best chance to enact expanded education benefits, calculating that the measure may well be the only appropriations bill cleared before Election Day.

"I am not willing to tell veterans that they need to wait another six or seven months to get the education benefits they deserve," said Patrick Campbell, legislative director for Iraq and Afghanistan Veterans of America.

Groups that favor using the supplemental spending measure as a vehicle voiced confidence that the Blue Dogs and House leaders will resolve their differences.

"I can't imagine that they are going to find offsets to cover the entire proposal of the GI Bill, but I think they will come to an agreement," said Dennis Cullinan, legislative director for the Veterans of Foreign Wars. "We urge them to do so quickly."

Although Cooper said the Blue Dogs are determined to prevail, White House Budget Director Jim Nussle predicted a different outcome.

"I think it's [public relations] only," Nussle said. "The Blue Dogs have been rolled on this before by the leadership. They were rolled on the budget. I think they are going to be rolled on this, too."

Liriel Higa contributed to this story.