Unless you live in a cave, you already know that Congress approved a bill late last night to end the partial government shutdown and avert a default on U.S. debt by raising the debt limit, and President Obama signed it into law. There were no retirement-related provisions in the bill.
In a nutshell, the legislation:
• reopens the federal government, but only funds its operation through Jan. 15; and
• suspends the debt ceiling through Feb. 7.
The sequester remains unchanged, as does the roll-out of Obamacare. The Wall Street Journal has a thorough wrap-up here, including the only quote you really need to know, from House Budget Committee Chair Paul Ryan (R-WI): “Today’s legislation won’t help us reduce our fast-growing debt … in my judgment, this isn’t a breakthrough. We just kicked the can down the road.”
What happens next? For one thing, a budget conference committee led by Ryan and his Senate counterpart, Sen. Patty Murray (D-WA) that will attempt to adjust the way in which the sequester imposes budget cuts and address other issues — possibly including tax reform. For another thing, it looks like we’re headed for another round of spending- and debt-related crises early next year, so be prepared to explain all this to your clients again just a few months from now. May you live in interesting times, as the Chinese curse says.
