SMRs and AMRs

Saturday, March 26, 2011

Budget Impasse Increasing Risk of U.S. Shutdown

By CARL HULSE
NYT

WASHINGTON — With time running short and budget negotiations this week having reached an angry impasse, Congressional leaders are growing increasingly pessimistic about reaching a bipartisan deal that would avert a government shutdown in early April.

Senior Democratic officials involved in high-level efforts to bring House Republicans, Senate Democrats and the White House to a budget agreement said that while some progress had been made toward an accord on an overall level of spending cuts, the parties remained divided on the final figure and had to resolve the fate of ideologically charged policy provisions demanded by House conservatives.

Some senior Republicans, after relying on House Democrats to help pass the most recent short-term measure, are also uneasy about having to team up with Democrats again to pass any compromise that dips too far below the $61 billion in spending reductions endorsed by the House for the current fiscal year. Senate Democrats want to wring some of the savings out of mandatory spending programs like Medicare, an approach Republicans are resisting.

Aides said that even if myriad outstanding issues were resolved and an agreement struck late next week after lawmakers returned, it would be a challenge to write the legislation and move it through Congress before the current financing bill expires on April 8.

(More here.)

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