Budget Process and Rules
Today, the Congressional Budget Office released their score of the proposal from Majority Leader Harry Reid (D-NV) to renew extended unemployment benefits in concert with other reductions in spending.
As part of the bipartisan deal to end the government shutdown and avoid default, a budget conference was established. The purpose of this conference is to reconcile the House and Senate budget resolutions passed earlier this year, and optimally reach an agreement on government funding levels and how to set the country on a fiscally sustainable long-term path.
Update: The Obama Administration has issued a veto threat for the bill, instead preferring that Congress pass a clean CR and debt ceiling increase.
While it is incredibly disappointing that elected officials in Washington failed to avoid a government shutdown, attention is quickly turning towards raising the federal debt ceiling, which currently stands at $16.699 trillion.
Congress faces a number of looming fiscal crises this fall, and the first obstacle is just around the corner -- if lawmakers fail to pass legislation to fund federal programs before September 30, the government will shut down. Today, CRFB released a new Q&A for understanding government shutdowns and related issues, including continuing resolutions and the federal appropriations process. This new resource also provides a historical and legislative background to the upcoming fiscal
With the debt limit approaching and another showdown looming, the focus of some policymakers may naturally turn to how to avoid a similar potentially damaging impasse in the future. In that vein, Rep. Scott Peters (D-CA) has introduced a bill which addresses both the need to raise the debt limit and the need to put the debt on a sustainable path.
This weekend in The New York Times, former Chairman of the Council of Economic Advisors Glenn Hubbard and the Hudson Institute's Tim Kane challenged both parties' approach to dealing with one of our of nation's most important problems and suggested ways to help maintain fiscal discipline.
Senators John Thune (R-SD), Tim Kaine (D-VA), Rob Portman (R-OH), and Chris Coons (D-DE) have introduced the Intergenerational Financial Obligations Reform (INFORM) Act, a bill that would encourage responsible budgeting by increasing the scope of federal budget analysis.
On May 19, the debt ceiling was reinstated as the Treasury Department began to use extraordinary measures to prevent running up against the debt limit. Extraordinary measures are expected to be exhausted sometime this fall, also when the current continuing resolution (CR) funding the government is due to expire. In addition, both parties are looking to alter the sequester in some form for future years and will have to figure out what to do with it then.