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[TSP_Strategy] No Shutdown Today

 

A Shutdown Has Been Avoided ... For Now

September 30, 2015

Con­gress has aver­ted a mid­night shut­down, as the House on Wed­nes­day af­ter­noon fol­lowed the Sen­ate's ex­ample by eas­ily passing a tem­por­ary spend­ing bill fund­ing the gov­ern­ment through Decem­ber 11.

The stop­gap meas­ure passed the Sen­ate 78 to 20 and then cleared the House on a 277-151 vote, des­pite the op­pos­i­tion of dozens of con­ser­vat­ives with ob­jec­tions to any pack­age that con­tin­ues to fund Planned Par­ent­hood. Videos re­leased by a pro-life group charge that the or­gan­iz­a­tion is il­leg­ally selling fetal tis­sue for a profit; the or­gan­iz­a­tion vig­or­ously denies the al­leg­a­tions.

Neither Demo­crats nor Re­pub­lic­ans were thrilled about the shut­down show­down, and both sides poin­ted fin­gers at the oth­er for bring­ing the coun­try to the brink. But there is some hope that the two sides can come to an agree­ment in the next few months for a longer budget deal clear­ing the decks for the next pres­id­ent.

Sen­ate Ma­jor­ity Lead­er Mitch Mc­Con­nell said Tues­day that he spoke with Pres­id­ent Obama and House Speak­er John Boehner last week about "get­ting star­ted" with ne­go­ti­ations for a two-year budget so the Re­pub­lic­an-led Con­gress can have a reg­u­lar ap­pro­pri­ations pro­cess next year. Sen­ate Demo­crats have blocked ap­pro­pri­ations bills this year over op­pos­i­tion that the spend­ing levels laid out in 2011 are too low, es­pe­cially for do­mest­ic pro­grams. "We are in­ev­it­ably go­ing to end up in a ne­go­ti­ation that will crack the Budget Con­trol Act once again," said Mc­Con­nell a few weeks ago.

The ne­go­ti­ations could be boos­ted by Boehner, who will have noth­ing left to lose after an­noun­cing last week that he will re­tire on Oc­to­ber 30. On Face the Na­tion Sunday, Boehner said he "might have a little more co­oper­a­tion from some around town to try to get as much fin­ished as pos­sible."

"I don't want to leave my suc­cessor a dirty barn," he ad­ded.

Mem­bers are already turn­ing their eyes to Decem­ber when the Sen­ate hopes to pass ap­pro­pri­ations bills based on a spend­ing deal with the White House. But House con­ser­vat­ives, em­boldened by Boehner's resig­na­tion, may be even more dif­fi­cult to cor­ral on a deal that will al­most cer­tainly raise spend­ing levels above se­quest­ra­tion caps for both de­fense and nondefense spend­ing.

Sev­er­al Re­pub­lic­an sen­at­ors fol­low­ing the vote on Wed­nes­day said they were already wor­ry­ing about the Christ­mas hol­i­days and wheth­er they'll be able to leave Wash­ing­ton to vis­it their fam­il­ies and avoid a gov­ern­ment shut­down. One Re­pub­lic­an ap­pro­pri­at­or em­phas­ized that the com­mit­tee needs to get star­ted on fund­ing plans for Decem­ber "to­night."

Asked about the pro­gnos­is for Decem­ber spend­ing bills after Boehner's de­par­ture, Sen. John Mc­Cain said: "I think it could be ugli­er be­cause I think we could come closer to a gov­ern­ment shut­down."

But Mc­Cain ad­ded that he and oth­er Re­pub­lic­ans in the Sen­ate's old guard have already be­gun to reach out to House mem­bers ur­ging unity. Their mes­sage: "Isn't it bet­ter for us to at least try to come to­geth­er than at­tack­ing each oth­er all the time? What are we gain­ing from this?"

Sen. John Thune ac­know­ledged the dif­fi­culty of passing spend­ing bills again this Decem­ber, giv­en the frac­tious state of re­la­tions between the House and Sen­ate. But, he ad­ded, the lead­er­ship teams aren't chan­ging much and he's hope­ful that Re­pub­lic­ans in both cham­bers will get a good deal for the party that can pass.

(Image via Felix Lipov / Shutterstock.com)


September 30, 2015

A Shutdown Has Been Avoided ... For Now


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Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

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