Republicans and Democrats agreed on Tuesday on a US$1.1 trillion spending bill to avoid a government shutdown and delay a politically charged struggle over US President Barack Obama’s new immigration policy until the new year.
The compromise is set to permit virtually the entire federal government to operate normally through the Sept. 30 end of the fiscal year, with the exception of the US Department of Homeland Security. Funds for that one agency will run out again in late winter.
That would give newly empowered Republicans an opportunity to try to use the expiration as leverage to force Obama to roll back a decision that would suspend the threat of deportation for an estimated 4 million immigrants living in the country illegally.
The events coincided with the end of an eight-year era of Democratic control of the US Senate. Republicans are set to have a majority next month after gaining nine seats in as they swept to power in last month’s elections, and Republican senators-elect participated in closed-door strategy sessions during the day.
In an unexpected move, lawmakers also agreed on legislation expected to be incorporated into the spending measure that will permit a reduction in benefits for current retirees at economically distressed multi-employer pension plans.
Supporters said it was part of an effort to prevent a slow-motion collapse of a system that provides retirement income to millions, but critics objected vehemently.
There was no immediate reaction from the White House to the bill.
At 1,603 pages, the spending bill adheres to strict caps negotiated earlier between the White House and deficit-conscious Republicans, and is also salted with Republican policy proposals. As described by unhappy liberals, one would roll back new regulations that prohibit banks from using federal deposit insurance to cover investments on some complex financial instruments.
Elsewhere, there were trade-offs. Republicans won a US$60 million cut at the US Environmental Protection Agency, and said the agency’s workforce would be reduced to the lowest level since 1989. Democrats emerged with increases for enforcement activities at the US Securities and Exchange Commission and the US Commodity Futures Trading Commission.
“The federal government’s going to run out of money in two days... We’ve been trying to work with Republican leaders to avoid a shutdown,” US Senate Majority Leader Harry Reid said in mid-afternoon as final negotiations dragged on.
US House of Representatives Speaker John Boehner said he hoped for a vote on the measure today, and officials expressed confidence they could overcome opposition from Republican lawmakers supported by the ultraconservative Tea Party movement and avoid a government shutdown.
House Democratic Leader Nancy Pelosi issued a statement that said she was hopeful her rank and file could support the bill, but needed to review the final language.
Senate approval would then be required to send it to Obama — one of the final acts of a two-year US Congress far better known for gridlock than for accomplishment.
After gaining control of the US Senate and adding to their majority in the House in last month’s elections, Republicans pledged they would prove to Americans that they were ready to govern, not just obstruct the president.
They are trying to avoid a repeat of last year’s 16-day partial shutdown in an unsuccessful attempt to overturn Obama’s signature healthcare law — which backfired and led to a big drop in Republican approval ratings.
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