–House Expected To Vote Thursday On Bill To Fund Gov Through March
–Senate Set To Consider FY’13 Stop-Gap Next Week
–Lawmakers To Continue Positioning For Post-Elect Fiscal Cliff Talks

By John Shaw

WASHINGTON (MNI) – Congress returns Monday from its five week
summer recess and both the House and Senate are primarily focused on
passing a stop-gap spending bill for the 2013 fiscal year that funds the
government for six months.

The House is expected to vote Thursday to approve the FY’13
stop-gap spending bill that funds the government through next March.

The 2013 fiscal year begins on Oct. 1 and so far Congress has
passed none of the 12 spending bills for FY’13.

House Speaker John Boehner and Senate Majority Leader Harry Reid
reached an agreement in July on a stop-gap funding bill, deciding to use
the $1.047 discretionary spending limit that was set in the 2011 debt
ceiling agreement. Some House Republicans had wanted to cut spending
below the agreed limit.

The Senate is expected to vote next week on the FY’13 stop-gap
spending bill.

As Congress takes up the FY’13 stop-gap bill, Republicans and
Democrats are expected to continue political positioning related to the
fiscal cliff.

The fiscal cliff refers to the convergence of several consequential
fiscal policy actions: the expiration of the Bush-era tax cuts at the
end of 2012, the implementation of across-the-board spending cuts in
2013, and the need to raise the nation’s statutory debt ceiling sometime
in coming months.

Democrats argue that only those Bush-era tax cuts for families
making less than $250,000 should be extended as well as adjustments to
the alternative minimum tax and the estate tax. They say the $110
billion in scheduled across-the-board spending cuts in FY’13 should be
replaced by a balanced package of deficit cuts that include additional
revenues.

Republicans say that all Bush tax cuts should be extended as well
as the AMT fix and other expiring tax provisions. They say the $110
billion in scheduled FY’13 spending cuts should be replaced by a more
targeted spending cut package.

While there have been some private talks among lawmakers on how to
resolve the fiscal cliff, few lawmakers expect serious talks to commence
until after the Nov. 6 elections.

The Senate will debate a bill this week that would authorize $5
billion to help veterans find employment on government projects.

The House will vote on the FY’13 stop-gap spending bill this week,
as well legislation related to the Foreign Intelligence Surveillance Act
and a bill limiting Department of Energy loan guarantee programs.

In other action this week, the Senate Banking Committee will hold a
hearing Thursday at 10 a.m. ET on the semi-annual report of the Consumer
Financial Protection Bureau. Richard Cordray, the director of the CFPB,
will testify.

Several subcommittees of the House Financial Services Committee
will hold hearings this week.

One subcommittee will hold a hearing Tuesday at 10 a.m. ET on the
terrorism risk insurance act.

Another subcommittee will hold a hearing Thursday at 10 a.m. ET on
the JOBS Act.

The full House Financial Services Committee will meet Wednesday at
10 a.m. ET to consider a veterans’ housing bill.

Two subcommittees of the House Ways and Means Committee will hold
hearings on the implementation of the 2010 health care law. One hearing
will be Tuesday at 10 a.m. ET and focus on the law’s tax provisions. A
second hearing will be held Wednesday at 10 a.m. ET and focus on
insurance exchanges.

** MNI Washington Bureau: (202) 371-2121 **

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