House passes spy bill and rejects phone immunity

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WASHINGTON (Reuters) - The Democratic-led U.S. House of Representatives defied President George W. Bush on Friday and passed an anti-terrorism spy bill that permits lawsuits against phone companies.

But the 213-197 vote was far short of the two-thirds majority needed to override a promised veto by Bush. He has demanded that any telecommunication company that participated in his warrantless domestic spying program secretly begun after the September 11 attacks receive retroactive immunity.

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