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Congress flirts with government shutdown after bill fails
http://www.reuters.com/article/2011/09/22/us-usa-congress-spending-idUSTRE78K78Z20110922
(Reuters) - Republican leaders were scrambling on Thursday to find the votes to keep the government funded after the embarrassing defeat of a spending bill threw into question Congress' ability to pass basic laws.
The House of Representatives and Senate must pass legislation to keep the government fully functioning beyond October 1 while lawmakers continue to debate a full budget. Democrats and Tea Party-aligned Republicans united to defeat the spending bill on Wednesday, albeit for opposite reasons.
Republican leaders have not yet figured out how to proceed on the bill, aides said on Thursday.
The Republican leadership has vowed to lower the temperature on Capitol Hill after fierce budget battles with Democrats pushed the government to the brink of a shutdown in April and the edge of default in August.
But the unexpected failure of the spending bill in the House on Wednesday showed that Congress still has trouble passing normally routine bills.
The months of turmoil on Capitol Hill has spooked consumers, rattled investors and led to a cut in the country's top-notch AAA credit rating.
The bill would provide billions of dollars in relief to communities that have been ravaged by tornadoes, floods and other disasters in one of the most extreme years for weather in U.S. history.
It also would keep the government running past the end of the month, buying some time for lawmakers to complete the appropriations bills that fund the government for the 2012 fiscal year that starts in little over a week.
Lawmakers had hoped to leave town on Thursday night for a weeklong break but leaders warned that weekend votes may be necessary.
Analysts said a government shutdown is unlikely at this point as Congress still has time to resolve its differences. Every spending debate this year has gone down to the wire.
SHUTDOWN NOT OUT OF THE QUESTION
"We'll stick with our call that there's only a 25 percent chance of a shutdown, but it's not out of the question after yesterday's posturing," Potomac Research Group analyst Greg Valliere wrote in a research note.
Democrats have objected to a proposed cut to an electric-vehicle program to offset disaster relief funding, while conservative Republicans wanted to cut government spending by billions of dollars more.
House of Representatives Speaker John Boehner could restore funding to the electric-car program to win Democratic support, but that could prompt further conservative defections and potentially undermine his position as the top Republican.
The speaker could try to win back conservative support through further spending cuts, but that would prompt a standoff with the Democratic-controlled Senate and increase the probability of a government shutdown.
Wednesday night's vote represented a disquieting defeat for Republican leaders who have struggled to rein in a conservative rank and file that has shown no appetite for compromise.
About 60 Tea Party Republicans have defied Boehner on other high-profile budget bills this year, but he has previously been able to rely on Democratic votes to win a majority.
Many Democrats initially said they would support the spending bill, but opposition hardened over the week and only six voted for it.
(Editing by Doina Chiacu)
Politics
(Reuters) - Republican leaders were scrambling on Thursday to find the votes to keep the government funded after the embarrassing defeat of a spending bill threw into question Congress' ability to pass basic laws.
The House of Representatives and Senate must pass legislation to keep the government fully functioning beyond October 1 while lawmakers continue to debate a full budget. Democrats and Tea Party-aligned Republicans united to defeat the spending bill on Wednesday, albeit for opposite reasons.
Republican leaders have not yet figured out how to proceed on the bill, aides said on Thursday.
The Republican leadership has vowed to lower the temperature on Capitol Hill after fierce budget battles with Democrats pushed the government to the brink of a shutdown in April and the edge of default in August.
But the unexpected failure of the spending bill in the House on Wednesday showed that Congress still has trouble passing normally routine bills.
The months of turmoil on Capitol Hill has spooked consumers, rattled investors and led to a cut in the country's top-notch AAA credit rating.
The bill would provide billions of dollars in relief to communities that have been ravaged by tornadoes, floods and other disasters in one of the most extreme years for weather in U.S. history.
It also would keep the government running past the end of the month, buying some time for lawmakers to complete the appropriations bills that fund the government for the 2012 fiscal year that starts in little over a week.
Lawmakers had hoped to leave town on Thursday night for a weeklong break but leaders warned that weekend votes may be necessary.
Analysts said a government shutdown is unlikely at this point as Congress still has time to resolve its differences. Every spending debate this year has gone down to the wire.
SHUTDOWN NOT OUT OF THE QUESTION
"We'll stick with our call that there's only a 25 percent chance of a shutdown, but it's not out of the question after yesterday's posturing," Potomac Research Group analyst Greg Valliere wrote in a research note.
Democrats have objected to a proposed cut to an electric-vehicle program to offset disaster relief funding, while conservative Republicans wanted to cut government spending by billions of dollars more.
House of Representatives Speaker John Boehner could restore funding to the electric-car program to win Democratic support, but that could prompt further conservative defections and potentially undermine his position as the top Republican.
The speaker could try to win back conservative support through further spending cuts, but that would prompt a standoff with the Democratic-controlled Senate and increase the probability of a government shutdown.
Wednesday night's vote represented a disquieting defeat for Republican leaders who have struggled to rein in a conservative rank and file that has shown no appetite for compromise.
About 60 Tea Party Republicans have defied Boehner on other high-profile budget bills this year, but he has previously been able to rely on Democratic votes to win a majority.
Many Democrats initially said they would support the spending bill, but opposition hardened over the week and only six voted for it.
(Editing by Doina Chiacu)
Politics
Funding for an electric car thing is what may or may not cause a shutdown? Poppycock! It is the nations politicians tripping over themselves that may cause a shutdown. Look, we spent $500+ billion on Solyndra... which is now out of business. (Solar Power... fell under the "Green Jobs" iniative)
We should not be talking about electric cars.... we should be talking about government and righting the ship. If it means we cut from electric cars, good. If it means no more money to study shrimp on a damned treadmill... good! This is useless spending. This is all crap that should be funded through private spending, not tax payer dollars.
We should not be talking about electric cars.... we should be talking about government and righting the ship. If it means we cut from electric cars, good. If it means no more money to study shrimp on a damned treadmill... good! This is useless spending. This is all crap that should be funded through private spending, not tax payer dollars.
(Reuters) - "There's no threat of a government shutdown," House of Representatives Speaker John Boehner said on Thursday as lawmakers sought an agreement to keep operations funded beyond September 30.
Boehner said he will present fellow Republicans, many of whom broke ranks with party leadership on Wednesday, with stopgap spending options later in the day.
Boehner said he will present fellow Republicans, many of whom broke ranks with party leadership on Wednesday, with stopgap spending options later in the day.
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