Senate Approves Continuation Of Federal Government Funding At FY09 Levels
October 29 2009 - 5:58PM
Dow Jones News
The U.S. Senate Thursday evening approved a measure continuing
federal government funding at fiscal 2009 levels until
mid-December, when Democrats hope the debate on a health-care
overhaul has been completed.
Without the extension, the federal government would be forced to
shut down Sunday at midnight. It is the second continuation of
federal government funding at last year's levels. The move was made
necessary because Congress has still been unable to complete its
appropriations work from fiscal 2009.
The House voted earlier Thursday to approve the measure. It will
now proceed to the White House for President Barack Obama's
signature.
Both the House and Senate votes were largely along partisan
lines.
Congress must pass 12 spending bills each year to keep the
various departments and agencies of the federal government running.
In fiscal 2009, which ended on Sept. 30, it fell short of this
mark. This is in no small part due to the focus on piecing together
health-care legislation, which has dominated lawmakers' attention
for several months.
The legislation also continues current elevated federal
home-loan-guarantee levels through 2010. In response to the housing
crisis, the federal government raised the levels of loans that
could be guaranteed by Freddie Mac (FRE) and Fannie Mae (FNM) and
other federal housing agencies. Those levels would revert to their
lower caps by the end of the year without action by Congress.
The Treasury issued a statement Thursday urging Congress to
continue the elevated loan guarantees.
The bill also extends until mid-December the highway bill, which
sets the formula for federal reimbursement of state road and bridge
construction projects. The House and Senate are divided over
whether to proceed with multi-year and costly legislation to
reauthorize the highway program, or to opt for a shorter-term
measure to delay the more comprehensive legislation. Both the Obama
administration and the Senate want to delay the longer
reauthorization until after the 2010 election.
The various continuations were attached to one of the 12
must-pass spending bills, one funding the Interior Department and
related agencies in fiscal 2010. That bill allocates $32.2 billion
in spending for initiatives including a program to clean up the
Great Lakes and funding to combat forest fires.
Many Republicans in the House and Senate voted against the
measure, citing concerns that it increases the budgets of the
federal agencies it covers by 17% compared with fiscal 2009.
"The bottom line for me is the conference agreement simply
spends too much money," Rep. Michael Simpson (R., Idaho) said on
the House floor.
-By Corey Boles, Dow Jones Newswires; 202-862-6601;
corey.boles@dowjones.com