x

Abu Dhabi, UAESunday 24 June 2018

US passes stop-gap spending bill to avoid government shutdown

Leaders in both parties are working on a two-year deal to lift caps on defence and domestic spending and break the cycle of temporary measures.

Both Congress and the Trump administration have ramped up pressure against Hezbollah in the past year. AFP/SAUL LOEB
Both Congress and the Trump administration have ramped up pressure against Hezbollah in the past year. AFP/SAUL LOEB

The House passed a temporary spending bill on Tuesday to keep the US government open until March 23 and fund the defense department through September as congressional leaders closed in on a longer-term agreement.

The 245-182 vote continues a pattern of using stop-gap spending to fund the government since the fiscal year began on October 1, with lawmakers unable to agree to a full-year budget.

The measure would extend most government funding at current levels until March 23 while lifting budget caps to provide $659 billion for the Pentagon through September 30.

A broader budget deal may be added to the legislation, HR 1892, before a Senate vote. Leaders in both parties are working on a two-year deal to lift caps on defence and domestic spending and break the cycle of temporary measures. A revised bill would have to be voted on again by the House before current funding runs out at the end of the day on Thursday.

Senate leaders said they don not want to bring the government to the brink of a shutdown and see little risk that it would occur. Last month, the government was closed for three days as lawmakers sought to work out differences on the last temporary measure.

“I think we’re on the way to getting an agreement, and getting it very soon,” Senate majority leader Mitch McConnell of Kentucky said Tuesday after lunch with GOP members.

Senator John Cornyn of Texas, the chamber’s second-ranking Republican, said he hopes a budget deal would include a provision to raise the debt ceiling. The nonpartisan Congressional Budget Office predicts the Treasury can prevent a default only through early March, and treasury secretary Steven Mnuchin urged Congress Tuesday to “act as soon as possible.”

House and Senate leaders have been discussing a two-year budget deal that would cost more than $250bn for this fiscal year and the next one that begins October 1. Defence caps for each year would be raised by about $80bn, while non-defence spending limits would be raised by about $60bn. Budget gimmicks would be used to add more domestic spending, allowing Democrats to claim that the cap increase treats defence and non-defence equally.

A Senate agreement to raise domestic spending along with Pentagon funding would likely be met by objections from conservative House Republicans, potentially forcing House Speaker Paul Ryan of Wisconsin to rely on Democratic votes to pass the measure.

House Democrats already anticipate they will have to cut short their scheduled three-day policy retreat beginning Wednesday in Cambridge, Maryland, to return to the Capitol for a second vote on the Senate version of the spending plan.

The higher spending would add to an expanding federal budget deficit that Steve Bell, a former Senate Budget Committee staff director, forecast would reach as much as $1 trillion next year.

The budget shortfall grew to $666bn last fiscal year because of higher spending on Medicare, Social Security and other programs for an ageing population. The gap is expected to widen further due to new tax cuts that are projected to reduce revenue by almost $1.5tn over the next decade.

Even as the threat of a government shutdown was ebbing in Congress, President Donald Trump was threatening to force one if Democrats refuse to meet his demands on immigration legislation.

“I’d love to see a shutdown if we don’t get this stuff taken care of,” Mr Trump said at an event with law enforcement officials to discuss MS-13, a predominantly Latino gang whose members include undocumented immigrants.

An attempt by Democrats to add deportation protections for about 700,000 young undocumented immigrants to the last spending bill led to a three-day government shutdown. But that obstacle was removed after Mr McConnell said he’ll allow the Senate to debate an immigration bill after Friday if the government remains open.