A federal government shutdown appears imminent, with Republicans and Democrats still far from a deal and the last continuing resolution on fiscal year 2011 spending set to expire at the end of April 8. Trying to buy more negotiating time, House Republicans approved a new continuing resolution today that funds most of the federal government for just one week but the Department of Defense through the end of September (the remainder of the fiscal year). The bill passed on a 247 to 181 vote, mostly along party lines, despite a rare veto threat from President Barack Obama earlier today. The roll call shows that Steve King (IA-05) was one of only six Republicans to vote no on this bill, and Leonard Boswell (IA-03) was among only 15 Democrats to vote yes. Tom Latham (IA-04) voted yes, along with most of the GOP caucus. Democrats Bruce Braley (IA-01) and Dave Loebsack (IA-02) voted no, like most of the Democrats.
House and Senate leaders have been negotiating at the White House today and are scheduled to continue this evening, but prospects for a budget deal don’t look good. Both sides are “already spinning a shutdown.” The main sticking point seems to be not the dollar figure for cuts to the current-year budget, but a number of “riders” demanded by House Republicans, which are unacceptable to Democrats. Some of the most contentious ones would defund health care reform, Planned Parenthood and forbid the Environmental Protection Agency from regulating greenhouse gases.
After the jump I’ve posted recent statements from Braley, Loebsack, and Latham regarding the federal budget negotiations and the continuing resolution passed today. Braley and Loebsack both denounced Washington political “games” and pointed out how thousands of Iowans would be affected by a shutdown. Latham said, “No one wants a government shutdown, and I’m doing everything I can to keep that from happening while protecting our troops […] However, we can’t continue to spend money we don’t have, and any budget approved by Congress must contain serious spending cuts.” Earlier today on the House floor, Latham stuck to the GOP script on the “troop funding bill”. I’ll update the post as more reaction becomes available.
Senator Tom Harkin has blamed Republican intransigence for the potential shutdown in many media interviews this week. Speaking on MSNBC today, he said that even in 1995 and 1996 he’d never seen anything like the current attitude among some Republicans who won’t compromise. Radio Iowa quoted Harkin as saying, “It is flabbergasting, that actually people are walking around here saying ‘shut the government down.’ I gotta ask sometimes, where’s their patriotism, where is their patriotism?” Speaking to reporters yesterday, Senator Chuck Grassley expressed frustration about Senate Republicans being excluded from the direct negotiations at the White House. He still sounds optimistic a shutdown can be avoided, though.
If Friday night’s deadline passes with no agreement, some government services would continue, including various law enforcement activities, air traffic control, the U.S. Postal Service, National Weather Service monitoring, and payment of food stamps and Social Security checks. However, approximately 800,000 federal employees would be furloughed, and many other Americans would be affected by cutbacks in government services. For instance, tax refunds would be delayed, national parks and forests would be closed, and neither the Federal Housing Administration nor the Small Business Administration would be able to process or approve new loans. Federal courts can continue to operate for two weeks, but if a shutdown lasts longer than that, “the federal court system faces serious disruption.” Over at Iowa Independent, Tyler Kingkade looked at how a federal government shutdown would affect Pell grants and the Head Start program in Iowa.
Share any thoughts about the federal budget impasse in this thread. I’m worried that the final deal will include too many spending cuts aimed at vulnerable people, and will be a drag on the economy as a whole. Tens of billions of dollars in cuts would not be on the table now if the Democratic-controlled Congress had completed work on the 2011 budget on time last year.
UPDATE: King explained his vote to IowaPolitics.com:
“I am on a singular mission to undo Obamacare,” King said. “I took the position that I’m going to hold my ground and I’m going to vote ‘no’ to any bill that does not cut off funding to Obamacare. When I give my word, I keep it. I see leadership moving away from using it as a lever. That’s a point of greater frustration.”
King also said, “I think the shutdown at this point is inevitable […] Then it becomes a stare down: who will blink.” Unfortunately, I think we can guess that President Obama will blink.
SECOND UPDATE: Jamie Dupree on the broken federal budget process: both parties have failed to approve budget bills on time during the last five election years.
Eli Lehrer has a post up on lobbyist influence over the “riders”: “the much longer list of environment-related riders looks like it was written almost entirely by specific industry lobbyists who have good relationships with certain members of Congress. Although there are some very broad efforts that would end virtually every climate-change or carbon-regulation program in the government, most of the environmental efforts are very narrow and, one assumes, serve a very few interests.”
THIRD UPDATE: Click here to listen to U.S. Secretary of Agriculture Tom Vilsack discuss the impact a shutdown would have on USDA operations.
On April 8 Iowa House Speaker Kraig Paulsen and Iowa Senate Majority Leader Mike Gronstal vowed that legislators will settle their parties’ differences over the state budget in the coming weeks through “healthy dialogue,” with no chance of an impasse like what’s occurring in Washington.
Also on April 8, Bruce Braley’s office sent reporters a memo prepared by chief of staff John Davis about the impact a government shutdown would have on Iowa families and the Iowa economy. Among other things, the memo asserts that nearly 60 Iowa small businesses would not have SBA loans approved, about half of Iowa Guard personnel would not be paid, veterans would see delays in various benefits and support services, Farm Service Agency loans would be delayed, as would export licenses and applications for Social Security cards. Also, the memo warns, “Over 3000 employees of Rock Island Arsenal could be out of work,” based on what happened during the 1995 government shutdown.
Continue Reading...