Thursday, October 17, 2013

FINAL DETAILS - Government Shut Down


Highlights:

GOVERNMENT SHUTDOWN: Ends immediately, finances federal agencies through Jan. 15. Workers furloughed without pay when the shutdown began Oct. 1 receive back pay.

DEBT CEILING: Government’s authority to borrow money is extended until Feb. 7. No constraints on Treasury Department’s ability to move funds among accounts once debt limit is reached, thus extending the government’s ability to avoid default several weeks beyond Feb. 7 if needed. However, this is subject to a “resolution of disapproval” by Congress – a procedural exercise through which one or both chambers can express disapproval for a measure without actually blocking it.

HEALTH CARE LAW (ACA): Department of Health and Human Services must certify it can verify income eligibility of people applying for government subsidies for health insurance. By next July 1, the department’s inspector general must report on the agency’s safeguards for preventing fraud.

LONGER-RANGE BUDGET ISSUES: In accompanying agreement, House and Senate leaders will negotiate over issues such as budget deficits and spending levels. They must issue report by Dec. 13, but they are not required to come to agreement.

REIMBURSMENT OF STATE GOVERNMENT and other Grantees: The measure clarifies that the federal government will reimburse states and grantees for the costs that states incurred during execution of federal programs that would normally be paid by federal appropriations.  This authority applies to any period in fiscal year 2014 in which a lapse in appropriations has occurred

OTHER ITEMS IN THE BILL: No pay raise for Members of Congress in 2014; $636 million for firefighting for the Interior Department and the Forest Service; allows work to continue on Olmstead lock in the Ohio River between Kentucky and Illinois; lets Federal Highway Administration reimburse Colorado up to $450 million for flood-damaged roads, exceeding usual $100 million cap; extra $294 million for Department of Veterans Affairs to reduce backlogs of benefits claims; funds for National Oceanic and Atmospheric Administration to continue work on two weather satellites; extends expired authority for Defense Department to support African forces hunting warlord Joseph Kony, leader of rebel group Lord’s Resistance Army.

Key Dates and Vote Tally
The bipartisan measure, which was approved on October 16 by both the Senate (81-18) and the House (285-144), funds the government through January 15, 2014, and suspends the debt limit through February 7, 2014

Wednesday, October 16, 2013

Government Shutdown Day 16 - Fiscal Deal Announced by Senate


Senate leaders Harry Reid and Mitch McConnell announced on the Senate floor that they have reached a deal to reopen the federal government, raise the debt ceiling, and hold bicameral budget negotiations.
 
The deal reached allows the federal government to reopen through Jan. 15 and lifts the debt ceiling through Feb. 7.

A conference would be created to negotiate a fiscal 2014 budget agreement, with directions to report a deal by Dec. 13 so Congress would have time to get it passed before the stopgap spending plan expires in mid-January. Dec 13th is key to avoiding another potential shutdown when the proposed new continuing resolution expires Jan. 15, the same day that the next round of across-the-board spending cuts known as sequestration is scheduled to take effect.

Treasury officials would still be allowed to use “extraordinary” measures to extend borrowing when the government approaches the debt limit in early February. As with previous deals, the debt limit would be lifted and the new one would encompass the amount of new borrowing that occurs in the meantime.

The deal, as it stands now,  would require greater steps to verify the incomes of individuals who apply for subsidies under the Affordable Care Act (PL 111-148, PL 111-152).

As of now, House Republicans are expected to meet at 3 pm today. The Senate is expected to vote early this evening.

If the House passes the deal first, it would allow the Senate to avoid at least one cloture vote to proceed when it arrives in that chamber. But it appeared that the Senate will be able to expedite passage of the deal under any circumstance after Sen. Ted Cruz, R-Texas, said he will not filibuster its consideration.

To be continued…

Tuesday, October 15, 2013

Governmetn Shutdown Day 15: Rapidly Evolving Plans Constantly Change


A lot of activity last night and this morning and continuing through the day….things are changing every hour.

In a nutshell here is the latest….but please keep in mind that this could change in a moment….

The LATEST - The House and Senate are engaging in dual-track negotiations today in search of a debt-ceiling deal. In the Senate, Majority Leader Harry Reid and Republican Senators  appeared close to a deal that would extend the debt ceiling for several months, as well as reopen the government with funding to last through the year's end.

But those talks have come to a halt —possibly temporary—after details leaked about a separate proposal from House Republicans, which would raise the debt ceiling but again included provisions modifying Obamacare.

Now, progress is shaky in the Senate, and the House plan is under siege: Reid declared it a nonstarter in the Senate, and there are questions about whether it could pass the House, as a number of the most conservative Republicans say Speaker John Boehner is giving away too much.

(Background- House Republican leaders announced earlier today that they would propose their own plan to reopen the government and extend the debt ceiling, rather than vote on a Senate proposal negotiated by Senate leaders Harry Reid and Mitch McConnell.

Like the emerging Senate proposal, the House Republican proposal was expected to fund the government until January 15 and extend the debt ceiling until February 7. However, the House Republican proposal is expected to make more changes to the Affordable Care Act than the Senate proposal, such as delaying the medical device tax. Sen. McConnell was scheduled to present the Reid-McConnell proposal to Senate Republicans this morning, but held off after House Republican leaders announced they would propose their own plan.

House Republican leaders were floating yet another plan to reopen the government and avert default.

According to Rep. Devin Nunes, R-Calif., the latest plan would drop a demand to delay the medical device tax in Obamacare and drop a demand for income verification under Obamacare. Instead, Republicans would target the health benefits of both lawmakers and congressional staff, as well as political appointees.

This iteration of the plan would keep the government running until Dec. 15, instead of Jan. 15.

The latest changes came after the plan presented this morning by Speaker John A. Boehner was panned by many Republicans in his conference.

Republican leadership met in Boehner’s office Tuesday afternoon to discuss next steps, and a House GOP aide said that closed-door discussions were currently focused on two areas that could make the fiscal package more palatable to the rank and file — the so-called Vitter language targeting health benefits and changing the date on the CR.

The House Democratic leadership is at the White House now to discuss developments with the President.

Last night a “secret” meeting was held at a nearby neighborhood restaurant (named Tortilla Coast) led by Sen. Ted Cruz.  A number of conservative lawmakers confirmed they participated in the meeting  but they declined to offer details.  This group is now called the “Tortilla Coast Republicans” and have been opposed to a “clean” Continuing Resolution.
 
Some numbers for you --

15: Number of days of the government shutdown
17: Number of years since the last government shutdown
$1.4 billion: The cost of the 1995-96 government shutdown
$55 billion: Estimated cost to the economy of a 3-4 week shutdown, according to Moody’s Analytics
1.4 percentage points: Amount fourth quarter GDP could be reduced if government remains shut down for three or four weeks, according to Moody’s economist Mark Zandi
500,000: Estimated number of federal employees not working due to the government shutdown
$160 million: Cost to the economy per weekday from furloughed workers, according to HIS Inc.

More to come...

 

 

Monday, October 14, 2013

Govt. Shutdown Day 14: Harry Reid and Mitch McConnell Closing in on a Deal President Can Sign


The White House said it is postponing a meeting with congressional leaders slated for 3 p.m. as Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell close in on a budget deal.
 

As background –

Senate Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY) are in the process of negotiating a deal to extend the debt ceiling and end the government shutdown. Under this deal, Congress would pass a Continuing Resolution to fund the Federal government until mid-to-late December, and larger budget negotiations would take place on sequestration and other fiscal issues. The proposal could be presented to President Obama this afternoon during a meeting at the White House with members of the House and Senate leadership.
 

Senate Majority Leader Harry Reid said he's "optimistic" that he and Senate Minority Leader Mitch McConnell will be able to reach a budget agreement this week.

"Constructive, good faith negotiations continue between the Republican leader and me," Reid said on the Senate floor. "I'm very optimistic that we will reach an agreement that's reasonable in nature this week to reopen the government, pay the nation's bills and begin long term negotiations to put our country on sound fiscal footing."

McConnell was also upbeat.

"I share his optimism that we're going to get a result that will be acceptable to both sides," McConnell said.

Friday, October 11, 2013

Govt Shutdown - Day 11 - Update as of Friday Morning October 11, 2013


Day 11--No Deal at White House, but Both Sides Will Keep Talking

 After the House GOP leadership met with the President yesterday negotiators worked to find a deal. A few noteworthy quotes sums up the result:

·        “He [President Obama] didn’t say yes, he didn’t say no. We’re going to continue negotiating this evening,” said House Budget Chairman Paul D. Ryan, R-Wis., after the Thursday meeting with President Obama.
·       The Ryan plan did not include a CR, but House Armed Services Chairman Howard “Buck” McKeon, R-Calif., said adding one to the package is “one of the things we’re talking about.”
·         Appropriations Chairman Harold Rogers, R-Ky., indicated that the President said he wanted the government reopened. “What we’re trying to do is find a way to quickly settle the CR crisis so that we can pass a CR and stop the shutdown,” he said. 
·         Speaker John A. Boehner said in a statement, “No final decisions were made; however, it was a useful and productive conservation. The president and leaders agreed that communication should continue throughout the night.”

 At the same time GOP Senators, led by Appropriations member Susan Collins (R-Maine), worked on a package to reopen the federal government and raise the debt ceiling.  Items in the package could include:
 
Ø  raising the debt limit,

Ø  flexibility to deal with the sequestration during the next two years,

Ørepealing or delaying the 2.3 percent medical device tax under the ACA. The pay for would come from “pension smoothing,” a strategy that would allow private businesses to lower their pension contributions in the near future in exchange for higher payments down the line.

Ø  Income verification for those receiving benefits under the health care law.

Sens. John McCain and John Cornyn, R-Texas voiced support that they are hopeful the Collins solution will lead the way out of the fiscal mess.

Meanwhile, Senate Democrats are sticking to their position no negotiations until after the government is reopened and the debt ceiling is raised.

Senate Majority Leader Harry Reid, D-Nev., filed cloture on the motion to proceed to a bill (S 1569) that would suspend the debt limit until Dec. 31, 2014, setting up a Saturday cloture vote.

The House was not originally scheduled to be session next week. Congressional leaders informed Members last night that they must stay in DC as the Oct 17th debt ceiling deadline draws closer.

 

To be continued .....

 

Wednesday, October 9, 2013

Government shutdown - Day 8 - update as of 10pm 10/8

Senate Democrats are proposing to suspend the federal debt limit until the end of 2014, Finance Chairman Max Baucus explained Tuesday.
Majority Leader Reid and Baucus are introducing legislation that suspends the debt limit, avoiding default. The bill mirrors legislation passed earlier this year and will suspend the debt limit until Dec. 31, 2014, after the mid-term elections.  The Senator stated that “On Jan. 1, 2015, a new debt limit is set which reflects whatever borrowing is done between passage of the bill and Dec. 31, 2014.”
The Senate’s expected to take a first procedural vote on the “clean” measure by week’s end.
 
And on the House side ----Speaker John Boehner rejected President Obama’s offer to negotiate a long-term fiscal deal in exchange for temporary measures to end the government shutdown and lift the debt ceiling.
 
The President said that if House Republicans re-opened the government and lifted the nation’s borrowing authority — even for a few months — he would enter into wide-ranging talks that could include the ACA and issues related to the debt.
Speaker Boehner opposed this plan.
 
The House voted to reopen the Head Start program in its 10th piecemeal funding measure, a strategy that the White House and Senate Democrats have rejected.
House Republicans moved forward on a separate package to pay federal employees deemed “essential” while forming a special, bicameral committee of 20 to hash out a long-term deficit-reduction plan that would include a budget and an increase in the debt ceiling.
 
The plan was announced to Republicans during a closed-door conference meeting Tuesday morning, and the Republican leadership brought it quickly to the floor for an evening vote.
The Republican plan would not include a timetable for striking an agreement, nor would it have triggered policy changes if a deal failed to materialize.
The White House issued a formal veto threat for the legislation late Tuesday afternoon.
 
 
During a shutdown, you CANNOT –
 
Get a new small business loan: Existing loans would be honored, but new applications would not be accepted.
Go to the Smithsonian or National Zoo: About 90 percent of the museums' 6,400 workers will be furloughed, with all museums and the zoo to be closed. The animals will still get fed, but visitors won't be around to see that.
Camp in a national park: All national parks -- from Yosemite to Acadia -- will close, and day visitors will have to leave immediately. (But longer-term campers already in parks will have two days to leave.)
Visit a Civil War battlefield: Like national parks, historic battlefields will be closed.
Visit the Capitol: While the Capitol will remain open for congressional matters, it will be closed to visitors.
Check the legal work status of an employee: The E-Verify system allows employers across the country to check on immigration status, but it's a federal website, which means it would be shut down.
Continue to be audited: The IRS will suspend audit activities. (They will begin again as soon as the government shutdown is over.)

Tuesday, October 8, 2013

Government Shutdown - Day 7 October 8th, 2013

Congress returned earlier this evening but did NOT consider a continuing resolution. 

There are also no formal talks taking place at this time between Rs and Ds.

Congressional Quarterly reports that House Democrats are trying to force Speaker John A. Boehner to hold a vote on a clean continuing resolution to reopen the government through a discharge petition, but Republicans say it will not work.

Democratic Reps. Chris Van Hollen of Maryland, George Miller of California and Nita M. Lowey of New York introduced the discharge petition Oct. 4 and noted today that if the House remains in session members could start signing it Oct. 12.

But three Republicans who support a clean version of the House-passed continuing resolution (H J Res 59) say they will not sign the discharge petition, which needs 218 votes to force House action.

GOP Reps. Peter T. King of New York, Devin Nunes of California and Charlie Dent of Pennsylvania have all said they will not support the effort.

 “My hope is that we will be able to resolve this situation prior to October 14, which I believe would be the earliest you could deal with that discharge petition,” Dent added. “Although I believe you probably couldn’t deal with it until October 28th for all practical purposes.”

It was unclear how many in the GOP would actually sign the petition, but more than 20 moderate Republicans have been quietly discussing possible  support for a clean CR.

The GOP-led House has passed a number of narrowly-tailored stopgap spending bills that would restore funding for an assortment of federal government programs, including the National Institutes of Health and the Federal Emergency Management Agency.

On the Senate side -  Senate Minority Whip John Cornyn (R-TX) stated that it would be “premature” to move on a standalone guarantee of back pay for federal workers without addressing other elements of the government shutdown.  (On Saturday the House unanimously passed a bill allowing for retroactive pay for furloughed federal employees.  This must also be approved by the Senate.)

Majority Leader Harry Reid is preparing to move ahead this week on legislation to raise the nation's debt ceiling and is expected to file a bill shortly on a "clean" debt-limit increase.

While some Congressional hearings are still scheduled for this week, a  number of House and Senate staff have been sent home because they are considered “non-essential” employees.   Many White House staffers have also not been allowed to return to work.  Federal workers are also not allowed to use their official work email and agency websites are not being updated.