Senate budget deal too late to avert #GovernmentShutdown

Senate Majority Leader Mitch McConnell (R-KY) walks to the Senate floor before a vote to end a government shutdown on Capitol Hill in Washington. Picture: Joshua Roberts/Reuters

Senate Majority Leader Mitch McConnell (R-KY) walks to the Senate floor before a vote to end a government shutdown on Capitol Hill in Washington. Picture: Joshua Roberts/Reuters

Published Feb 9, 2018

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Washington - The US Senate approved a

budget deal including a stopgap government funding bill early on

Friday, but it was too late to prevent a federal shutdown that

was already underway in an embarrassing setback for the

Republican-controlled Congress.

The shutdown, which technically started at midnight, was the

second this year under Republican President Donald Trump, who

played little role in attempts by party leaders earlier this

week to head it off and end months of fiscal squabbling.

The US Office of Personnel Management advised millions of

federal employees shortly after midnight to check with their

agencies about whether they should report to work on Friday.

The Senate's approval of the budget and stopgap funding

package, by a vote of 71-28, meant it will go next to the House

of Representatives, where lawmakers were divided along party

lines and passage was uncertain.

House Republican leaders on Thursday had offered assurances

that the package would be approved, but so did Senate leaders

and the critical midnight deadline, when current government

funding authority expired, was still missed.

The reason for that was a nine-hour, on-again, off-again

Senate floor speech by Kentucky Republican Senator Rand Paul,

who objected to deficit spending in the bill.

The unexpected turn of events dragged the Senate proceedings

into the wee hours and underscored the persistent inability of

Congress and Trump to deal efficiently with Washington's most

basic fiscal obligations of keeping the government open.

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The shutdown could be brief. If the House acts before

daybreak to approve the package from the Senate, there would be

no practical interruption in federal government business.

If it does not, the result would be an actual shutdown, the

second of 2018, after a three-day shutdown in January.

Paul said during his marathon speech, which strained fellow

senators' patience, that the two-year budget deal would "loot

the Treasury."

The bill would raise military and domestic spending by

almost $300 billion over the next two years. With no offsets in

the form of other spending cuts or new tax revenues, that

additional spending would be financed by borrowed money.

MORE RED INK

The budget part of the package was a bipartisan attempt by

Senate leaders to end for many months, at least beyond

November's midterm congressional elections, the fiscal policy

quarrels that increasingly consume Congress.

But the deficit spending in the bill would add more red ink

to Washington's balance sheet and further underscore a shift in

Republican thinking that Paul was trying to draw attention to.

Once known as the party of fiscal conservatism, the

Republicans and Trump approved a sweeping tax overhaul bill in

December that will add an estimated $1.5 trillion to the $20

trillion national debt over 10 years.

"I ran for office because I was very critical of President

Obama's trillion-dollar deficits," Paul said.

"Now we have Republicans hand in hand with Democrats

offering us trillion-dollar deficits. I can't ... in good faith,

just look the other way because my party is now complicit in the

deficits. Really who is to blame? Both parties," he said.

Paul voted for the deficit-financed tax bill in December.

MARKETS UNEASY

The shutdown in Washington came at a sensitive time for

financial markets. Stocks plunged on Thursday in New York on

heavy volume, throwing off course a nearly nine-year bull run.

The S&P 500 slumped 3.8 percent.

Markets barely flinched at the last shutdown in January, but

that was before a dizzying selloff that started on Jan. 30 amid

concerns about inflation and higher interest rates.

Uneasiness in the markets could be partially reduced by

another part of the Senate bill, which would extend the federal

debt ceiling to March 2019, preventing further confrontations

over that volatile issue in Congress for more than a year.

But final passage of the bill was still uncertain, with

House Democratic leader Nancy Pelosi and others in her party

opposing it because Republican House leaders will not guarantee

her that they will allow a debate later on about taking steps to

protect about 700,000 "Dreamer" immigrants from deportation.

The young people were brought illegally to the country as

children years ago, mostly from Mexico.

Trump said last September he would end by March 5 a program

set up by former Democratic President Barack Obama to protect

the Dreamers from deportation, and urged Congress to act before

then. Senate Republicans have pledged to hold a separate

immigration debate this month.

Even without Pelosi, the House could pass the budget bill

because it includes more money for disaster relief,

infrastructure and healthcare, which many Democrats favor.

But some House Republican conservatives, like Paul, have

criticized the bill's deficit spending.

House Speaker Paul Ryan, who backs the bill, predicted the

Republican-controlled House would pass it. "I think we will," he

said in a radio interview. "It's going to need bipartisan

support. We are going to deliver our share of support."

Reuters

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