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With Shutdown Looming, Spending Battle Begins

Congress is set to play a high stakes game of political chicken this week over federal government spending as the end of the 2013 fiscal year rapidly approaches. If a resolution of this issue is not achieved by next Tuesday, Oct. 1, a shutdown of the federal government will occur. 
 
Last week, the Republican-controlled House of Representatives passed a stopgap spending bill (H.J. Res 59) that funds federal government operations through Dec. 15, 2013. The legislation, which cleared on a party-line vote, maintains the government spending sequester into the new fiscal year, strips out all federal funding of Obamacare, and contains language that directs the Department of the Treasury to prioritize debt payments in the event that the federal debt limit is not altered in October. 
 
This week, the Democrat-controlled Senate will consider H.J. Res 59. After some procedural wrangling on the House measure, the Senate is likely to amend the House bill to restore funding to Obamacare and remove the debt prioritization language. The Senate’s spending bill could also remove the federal spending sequester and increase government funding for federal programs. The new bill would then be sent back to the House of Representatives for further consideration. 
 
Notwithstanding the impasse over federal government spending, Congress is also in the midst of a showdown over the federal debt ceiling. Treasury predicts that the debt ceiling will be reached in mid-October. House Republicans unveiled a proposal last week that would extend the debt ceiling through November 2014. In exchange, the House Republicans would demand multiple policy concessions from the Obama administration. These include expedited consideration of revenue neutral tax reform, immediate permitting of the Keystone XL pipeline, means-testing Medicare benefits, delaying the individual mandate under Obamacare for one year, and altering the inflation calculation to slow the cost-of-living increases to Social Security benefits. President Obama has repeatedly stated that he will not negotiate on extending the debt limit. 
 
Stay tuned — decisions on these critical issues are likely in the near future. 

Andrew Remo is ASPPA’s Congressional Affairs Manager.    

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