By Richard Cowan

WASHINGTON, April 16 (Reuters) - The White House on Wednesday warned that the U.S. Congress must approve additional money for the wars in Iraq and Afghanistan by the end of May or risk the start of Defense Department layoff notices.

"Congress needs to fund our troops by Memorial Day," White House Budget Director Jim Nussle told the Senate Appropriations Committee. "Failure to act quickly could result in an unfortunate replay of last December, when furlough warnings were issued" by the Pentagon, Nussle added.

The Republican budget director was referring to layoff warnings for some noncombat personnel at the end of 2007, just before Congress finished work on $70 billion in additional money for the wars.

That $70 billion was a portion of about $172 billion requested early last year by President George W. Bush for combat in Iraq and Afghanistan.

Assuming Congress gives Bush the remaining $102 billion for the two conflicts this year, total U.S. war funding since 2001 would total $752 billion, according to the Congressional Budget Office.

In his testimony to the Senate panel, Nussle reiterated warnings that Congress should not load up the war-funds bill with additional spending on domestic programs.

"The president has made clear that he will veto any attempt to hijack this much needed troop funding bill," Nussle said.

But Senate Appropriations Committee Chairman Robert Byrd, a West Virginia Democrat and outspoken opponent of the Iraq war, said the Bush administration budget request "reveals no evidence of funding to bolster our country's economy or to help Americans deal with lost jobs, mortgage foreclosures and the rising cost of living."

Byrd and his fellow Democrats are considering a new economic stimulus plan that could cost at least $30 billion, according to congressional aides. It is not yet clear whether all or part of such an initiative would be attached to the must-do money bill for Iraq and Afghanistan.

Democrats also are weighing what kind of war-related conditions to attach to the funding bill, such as mandatory rest time for combat soldiers or timetables for withdrawing U.S. combat troops from Iraq.

A growing number of Democrats and Republicans on the Senate Appropriations Committee voiced frustration that U.S. taxpayers were paying for Iraqi reconstruction while Baghdad ran a budget surplus.

Republican Sen. Judd Gregg of New Hampshire suggested the possibility of requiring Iraq to spend $1 for every dollar the U.S. spends on rebuilding Iraq.

With this major war-funding bill moving through Congress in coming weeks, there have been questions in the Senate over whether the 90-year-old Byrd, who has had health problems recently, has the stamina to remain as chairman of the Appropriations Committee.

(Editing by David Wiessler)

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