Democrat dedication to a Department of Energy loan program may end up shutting down the federal government by the end of this month. The federal government’s fiscal year expires on September 30th, and Congress has not yet passed legislation authorizing any money to be spent after that date.
The House plans to pass a temporary funding bill, today, that would keep the government open through November 18th. But Senate Democrats say they’ll reject the cuts to clean energy loans the House included in the bill to pay for increased Federal Emergency Management Agency disaster aid funding.
President Obama has asked Congress for a total of $5.1 billion in additional disaster aid, $500 million of which was for immediate relief. The House bill has $3.6 billion in disaster funding, $1 billion of which would be available immediately. Senate Democrats are asking for $7.
The standoff comes as Americans tell Gallup hey believe the federal government wastes more than half of every dollar it spends, and as Obama Energy Department officials testify about how they spent $527 million on a now-bankrupt clean energy firm through a separate loan program. Democrats believe the government loan program is essential for job creation. House Minority Whip Steny Hoyer, D-Md., tells CNN Democrats will not budge because cuts to government clean energy spending “puts at risk some 30,000 to 50,000 jobs that would be created we believe by that investment.”
Around the Bigs
The San Francisco Chronicle, Solyndra officials to take the Fifth: Two of Solyndra’s top executives announced today that they will refuse to testify before the House Energy and Commerce Committee Friday, on the grounds that their testimony may incriminate them. The Federal Bureau of Investigations has launched a probe into the circumstances surrounding the failed firms $527 million loan from the Obama Energy Department.
The Wall Street Journal, Home Forecast Calls for Pain: According to a recent survey of more than 100 economists, economists, builders and mortgage analysts are all predicting a weak U.S. economy will “depress housing prices for years, restraining consumer spending, pushing more homeowners into foreclosure and clouding prospects for a sustained recovery.”
Associated Press, Wisconsin Recall Elections: Record $44 Million Spent By Campaigns, Outside Groups: Democrats and their government union allies outspent Republicans $23.4 million to $20.5 million during their failed attempt to takeover the Wisconsin Senate through recalls this summer.
The Wall Street Journal, GOP Leaders Urge the Fed Not to Act: House Speaker John Boehner, R-Ohio, Senate Minority Leader Mitch McConnell, R-Ky., House Majority Leader Eric Cantor, R-Va., and Senate Minority Whip Jon Kyl, R-Ariz., all signed a letter sent to Federal Reserve Chairman Ben Bernanke asking him to “resist further extraordinary intervention in the U.S. economy.” The Republicans said that previous efforts by the Fed to spur spending through large purchases of government bonds, called quantitative easing, have not worked. Instead, the Republicans claim, they have likely increases economic uncertainty.
Gallup, Americans Say Federal Gov’t Wastes Over Half of Every Dollar: According to Gallup, Americans estimate that the federal government wastes 51 cents of every dollar it spends, the highest level of waste Americans have estimated ever. Americans are more confident in their state and local governments, estimating that states waste only 42 cents of every dollar and the local governments 38 cents.
The Washington Post, Johnson to run for Senate GOP leadership spot: Tea Party favorite Sen. Ron Johnson, R-Wis., announced Tuesday that he plans to run for vice-chairman of the Senate Republican Conference, the caucuses 5th highest leadership position. “I came to Washington because I believe that business as usual is bankrupting America, and it has to stop,” a Johnson statement read.
Campaign 2012
Obama: According to the latest McClatchy-Marist poll, a majority of voters believing Obama will lose to any Republican and a solid plurality say they will definitely vote against him in 2012. However, Obama still leads former Massachusetts Gov. Mitt Romney in a head-to-head match-up 46 percent to 44 percent, and Texas Gov. Rick Perry 50 percent to 41 percent.
Perry: House Budget Committee Chairman Paul Ryan sided with Texas Gov. Rick Perry on his assessment that the current Social Security system is a Ponzi scheme. “It’s not a criminal enterprise, but it’s a pay-as-you-go system, where earlier investors — or say, taxpayers — get a positive rate of return, and the most recent investors — or taxpayers — get a negative rate of return,” Ryan told Laura Ingraham.
South Carolina: A new Winthrop University poll shows Perry’s lead over Romney narrowing in the Palmetto state, 30.5 percent to 27.3 percent.
House: Despite control of the House, the the National Republican Congressional Committee has raised $1 million less than the Democratic Congressional Campaign Committee since January.
Righty Playbook
The Corner‘s Michael Poterma notes that Jay Leno is now telling some pointed jokes about Obama, including this one: “After saying the jobs bill is paid for, President Obama now says that it will be paid for by raising taxes over 10 years. I can’t figure out if he’s the kind of guy who makes infomercials, or the kind of guy who falls for infomercials.”
The Weekly Standard‘s Jeffrey Anderson says Obamacare repeal should be part of any deficit plan.
RedState‘s Ben Howe flags a National Economic Research Associates (NERA) study showing Obama’s proposed EPA regulations would cost America over 180,000 jobs per year between 2013 and 2020.
Lefty Playbook
DailyKos is urging readers to sign a petition asking the Super Committee to: 1) have the Congressional Budget Office score any legislation on job creation; 2) reject any plan that would cost jobs.
Defending the concept of green jobs, Grist‘s David Roberts writes: “Welcome to my world, where hippie efforts to make the world a better place are subjected to a degree of skepticism and hostility wildly out of proportion to what faces regular, daily efforts to make the world more polluted and unpleasant.”
Slate John Dikerson predicts that Obama will follow through on his threats to veto any Super Congress proposal that does not include tax hikes: “The president hasn’t yet threatened to throw his steering wheel out the window, but he’s loosening the bolts.”
