–Nearly Week-Long Debate Culminates In Party-Line Vote
–House GOP Says Bill Shows Committment To Spending Cuts
–Hill Dems Says House GOP Stop-Gap To Be Rewritten By Senate Dems

By John Shaw

WASHINGTON (MNI) – The House, after a nearly week-long debate and
votes on dozens of amendments, early Saturday morning approved a
stop-gap spending bill for the 2011 fiscal year.

The FY’11 spending bill, which was approved on a near party-line
vote, funds the government for the rest of the fiscal year, but reduces
spending for non-security discretionary programs by more than $60
billion from FY’10 levels. This is about $100 billion below what
President Obama first requested.

The House approved the bill on a 235-to-189 vote.

The House bill cut hundreds of programs, ranging from the EPA to
foreign assistance to Pell Grants. The House voted to effectively defund
some of the new programs established by last year’s health care law.

The House rejected an amendment Friday that would have cut an
additional $22 billion from the budget. It was pushed by the Republican
Study Group, the most conservative faction within the House Republican
caucus.

The FY’11 stop-gap spending bill will be sent to Senate where
Democratic leaders have pledged to fundamentally rewrite the measure.

But lawmakers face tricky timing; the current stop-gap spending
bill that is keeping the government running extends until March 4.

Both the House and Senate will be out next week and the Senate is
expected to take up its stop-gap bill on Feb. 28.

Since the House and Senate are very unlikely to resolve their
differences by March 4, the focus will soon shift to what kind of
short-term bill is passed by Congress to keep the government operating
while talks go forward on a spending bill for the rest of FY’11.

House Speaker John Boehner said Thursday that he will insist that
even a short-term FY’11 funding bill include spending reductions rather
than just continue spending at current rates.

“I’m not going to move any kind of short-term CR at current
levels. When we say we’re going to cut spending, read my lips, we’re
going to cut spending,” he said.

Senate Majority Leader Harry Reid responded hours later by blasting
Boehner for trying to dictate the terms of a short-term funding
bill.

“We’re terribly disappointed Speaker Boehner can’t control the
votes in his conference. They’re going to shut down the government. And
now he’s resorting to threats to do just that without any negotiations.
That is not permissible. We will not stand for that,” Reid said.

The 2011 fiscal year began Oct. 1, 2010 and ends Sept. 30, 2011.
None of the 12 regular spending bills have been passed by Congress. A
series of short-term spending bills has kept the government operating
since Oct. 1.

** Market News International Washington Bureau: 202-371-2121 **

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