Budget Battle on Capitol Hill Heats Up

Could House Republicans and Senate Democrats be at a stalemate on the federal budget? With Senate majority leader Harry Reid’s announcement today that Senate Democrats would introduce a “short-term” continuing resolution to fund the federal government for the next 30 days, it looks possible. From Reid’s statement:

To avoid a shutdown and give us time to negotiate a responsible path forward, I have asked Sen. Inouye, Chairman of the Senate Appropriations Committee, to prepare a clean Continuing Resolution that I can bring to the floor next week. Since this bill is intended to fund vital services like Social Security, our military and border security, it should have no legislation or riders tied to it. This bill will include the $41 billion in budget cuts that Democrats and Republicans agreed to in December, and will keep the government running for 30 days while both sides can negotiate a common-sense, long-term solution. I have asked my chief of staff, David Krone, to begin negotiations with Speaker Boehner’s chief of staff, Barry Jackson, to craft a long-term continuing resolution that cuts waste and excess, while protecting the initiatives that keep us safe, put Americans back to work and keep our economy on the right track.
It is time to drop the threats and ultimatums, and work together on a path forward. I am asking Speaker Boehner to simply take the threat of a government shutdown off the table, and work with us to negotiate a responsible, long-term solution.

On Saturday, the House passed a continuing resolution that would cut spending while funding the federal government until October, though it is clear from Reid’s announcement today that the bill won’t reach the floor for a vote. House majority leader Eric Cantor called Reid’s alternate CR a “threat” to force a government shutdown, which Cantor said is “not an acceptable outcome.” From Cantor’s statement:

The short-term CR plan that Senate Democrat Leader Harry Reid announced today shows – yet again – that he is not serious about cutting spending and getting our fiscal house in order. While Leader Reid claims that his plan cuts spending, all it does is lock in the status quo spending levels which increased 24% over the past two years. I challenge him to identify a single cut from current spending levels included in his plan.

An aide to a senior Republican said the House GOP is working on putting together a new CR plan, expected later this week. The new CR would attempt to be more amenable to the Senate’s moderate Democrats (including those who are up for reelection in 2012), the aide said.

Missouri senator Claire McCaskill could be one of those Democrats. Earlier this month she joined Tennessee Republican Bob Corker in supporting a bill that would cut spending, including addressing social security reforms. (Fred Barnes wrote about Corker’s plan in THE WEEKLY STANDARD last month.) And on Fox News Sunday this week, McCaskill emphasized that she wants budget cuts.

“We can find a compromise,” McCaskill told Chris Wallace. “We can make serious and significant cuts in this government with some wasteful programs without going out at the heart of education funding, without cutting border security. We can do that.”

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