Friday, September 23, 2011

Senate rejects House spending bill, leaving open possibility of government shutdown

September 23, 2011

Senate rejects House spending bill, leaving open possibility of government shutdown

The Senate on Friday defeated, 59 to 36, a GOP-authored short-term funding measure designed to keep the government running through mid-November, ratcheting up the pressure on party leaders to resolve an impasse on federal disaster relief funds ahead of a deadline at the end of next week.

With both chambers scheduled to begin a week-long recess later Friday, the next step on the funding resolution remains unclear. The Federal Emergency Management Agency could run out of funding as early as Monday, and the resolution currently keeping the federal government open is set to expire on Sept. 30.

At a Capitol news conference ahead of the Friday morning vote, House Republican leaders urged the Senate to take up the House-passed measure.
“With FEMA expected to run out of disaster funding as soon as Monday, the only path to getting assistance into the hands of American families immediately is for the Senate to approve the House bill,” House Speaker John Boehner (R-Ohio) said.

Hours earlier, the House had approved its version of the legislation by a 219-203 vote in an after-midnight roll call. But Democrats in both chambers have balked at the inclusion of more than $1 billion in cuts elsewhere in the budget in order to offset the additional disaster relief funding.

The vote in the upper chamber came after a midnight roll call, when House Republican leaders persuaded conservatives early Friday morning to support a stop-gap measure nearly identical to one they had rejected just 30 hours earlier. By a narrow margin, 213 Republicans supported the plan, along with six Democrats; 179 Democrats opposed it, joined by 24 Republicans.

Without a resolution, FEMA’s disaster relief fund will run out of money early next week and the rest of the government would be forced to shutdown Oct. 1.

FEMA said its Disaster Relief Fund had just $175 million as of Friday morning and would go broke by early next week, likely on Tuesday.

An unprecedented depletion of the fund would trigger federal laws governing how agencies are supposed to operate in the absence of funds, and the agency said it is consulting with Obama administration lawyers to determine how to proceed.

“The administration is committed to doing all it can under current legal authorities to continue vital operations, including assistance to individuals,” FEMA spokeswoman Rachel Racusen said in an e-mail. “ But there is no question this is a critical situation and one we are watching closely.”

House leaders contend that the Senate is responsible for blocking desperately needed disaster dollars from flowing to FEMA.

“You saw the House act,” said House Majority Leader Eric Cantor (R-Va.) as he left the Capitol early Friday morning. “We are intending that the money gets to FEMA and to disaster victims as they need it.”

“I think Harry Reid’s political ploy is not going to work,” Cantor continued. “I guess Harry Reid will have to bear the burden of denying disaster victims the money they need.”

Friday’s House vote marked a reversal of fortunes for Boehner, who after losing the initial Wednesday vote on the House spending resolution found himself roaming the contours of a familiar dilemma — capitulate to fiscal hawks in his own party who want to spend less, or compromise with Democrats who want to spend more.

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