CAPT, you are exactly correct. This process was instigated in the late 90's. Under the previous system, Congressional pay raises required specific action, which in good emasure resulted in no Congressional raises between 1993 and 1997.
The 2006 COLA is contained in the appropriations bill covering the Transportation, Treasury and Housing and Urban Development departments, Judiciary, District of Columbia and independent agencies (
H.R. 3058). The conference report on H.R. 3058 passed Friday in the House by a vote of 392-31. It passed in the Senate that afternoon by voice vote (a voice vote on conference reports is fairly standard procedure).
Earlier this fall, seven Senators (Senators Tom Coburn, Jim DeMint, John Ensign, John McCain, Lindsey Graham, and John Sununu) calling themselves the "Fiscal Watch Team" asked Congress to offset the costs of paying for damage from hurricanes along the Gulf Coast, suggesting one way to help offset these costs was to freeze the salaries for lawmakers and federal employees for 2006. That effort, which would have saved an estimated $2 billion, failed.