From House Speaker John Boehner, R-Ohio:
“The House has fought with everything it has to convince the president of the United States to engage in bipartisan negotiations aimed at addressing our country’s debt and providing fairness for the American people under ObamaCare. That fight will continue. But blocking the bipartisan agreement reached today by the members of the Senate will not be a tactic for us. In addition to the risk of default, doing so would open the door for the Democratic majority in Washington to raise taxes again on the American people and undo the spending caps in the 2011 Budget Control Act without replacing them with better spending cuts. With our nation’s economy still struggling under years of the president’s policies, raising taxes is not a viable option. Our drive to stop the train wreck that is the president’s health care law will continue. We will rely on aggressive oversight that highlights the law’s massive flaws and smart, targeted strikes that split the legislative coalition the president has relied upon to force his health care law on the American people.”
From U.S. Sen. Barbara Boxer, D-Calif.:
“Bipartisanship in the Senate is leading America out of a painful, partisan, self-inflicted crisis. Relief doesn’t begin to describe my feelings at this moment in history as the Senate came together not a moment too soon.
“During the 16-day government shutdown I worked to show through my committee chairmanship and as a Senator of the largest state in the country just how painful the shutdown has been to millions of Americans, and how we should never again go through another government shutdown or even a flirtation with a devastating default.
“There are many issues that divide Republicans and Democrats, but the one thing I trust this outcome ensures is that we will always keep the government open, pay our bills and work together.”
From Rep. Mike Honda, D-San Jose:
“I am pleased that cooler heads in the Senate have prevailed with a bipartisan deal that allows the federal government to reopen, albeit temporarily, and removes the specter of reaching the debt ceiling until February.
“Obstructionist Tea Party Republicans held the government and the American people hostage for sixteen days and threatened the full faith and credit of the United States, all in a misguided, failed effort to deny millions of Americans access to healthcare. This process has done lasting damage to the public’s trust in Congress, as governing should not involve lurching from one manufactured crisis to the next in the hopes of extracting concessions in exchange for not destroying the economy.
“Today’s agreement sets a winter deadline that some may use to take us to the brink yet again. I believe we must permanently reform this process, and will be working to build support among my colleagues for my legislation, H.R. 233, that will end the brinksmanship and threat of default by creating a smooth process for raising the debt limit. This is the kind of structural change we need for economic stability in the future.”
An effort to force a House vote on a “clean” continuing resolution to re-open the federal government “may become the parachute that saves us from crashing” if other plans fall through in the next day or so, Rep. George Miller said Tuesday afternoon.
A plan for the House to vote Tuesday evening on a GOP proposal to raise the debt limit and reopen the government appears to be on the rocks. House Republicans appear split on whether to support it, and the Democrat-led Senate probably wouldn’t pass it anyway because it would fund the government only through mid-December and it’s predicated on a tweak to the national health insurance law.
Senate leaders had been inching toward a deal of their own Monday, but that was put on hold Tuesday pending the House vote. If the Senate can’t return to the bargaining table, that leaves little time before Thursday’s deadline – after which the government loses its ability to borrow and won’t be able to pay its bills, triggering chaos in the world’s financial markets.
Democrats on Oct. 4 announced they would start a discharge petition to force a vote on a clean continuing resolution, but due to procedural requirements, they couldn’t start gathering signatures until Saturday. As of Tuesday afternoon, 196 Democrats had signed but no Republicans; 218 signatures are needed to force a vote.
House Democrats have been pressing 30 specific Republicans – who have voiced their distaste for their party’s shutdown strategy and said they would vote for a clean CR – to sign the discharge petition.
“They have not (signed) yet – they’re in negotiations, and this is a very heavy lift to join a discharge petition against your own leadership,” Miller, D-Martinez, said Tuesday, but he’s convinced enough will sign if there’s no other way to avoid the impending fiscal disaster.
“We’re 48 hours away from having a dual image flash across the world: The United States government is shut down AND it’s about to default on its debt,” he said. “That is a catastrophic image for our country.”
Eight California lawmakers from both sides of the aisle were among more than 50 House members who gathered today in Washington, D.C., to urge congressional leaders and President Obama to “stop fighting and start fixing.”
Organized by the bipartisan group No Labels, the lawmakers who assembled in the Cannon House Office Building’s caucus room agreed leaders mustn’t let the nation default on its debt.
“The No Labels Problem Solvers and other members of Congress you see here today are ready to work together and support our respective leaderships in a bipartisan solution to the government shutdown and other crucial issues facing our country,” said Rep. Kurt Schrader, D-Ore. “Let’s show some courage and work together like the American people expect and deserve.”
Among those at the event were Reps. Ami Bera, D-Rancho Cordova; Tony Cardenas, D-Arleta; Jim Costa, D-Fresno; Susan Davis, D-San Diego; Jeff Denham, R-Modesto; Sam Farr, D-Santa Cruz; Scott Peters, D-San Diego; and David Valadao, R-Hanford.
“The costs of the government shutdown are growing every day, and experts from all sides agree that failing to pay America’s bills would be disastrous for our economy,” Bera said in a news release. “It’s past time for us to stop blaming one another, and start talking about how to move forward for the good of the country. This is not about Democrats or Republicans; it’s about putting the American people before politics. Many of us are ready to begin working and solving our nation’s problems, but we need leadership that lets us do that work.”
California won’t take too much of a hit in the short term, but stands to lose a lot if the federal government shutdown lasts more than a brief time, according to the state Department of Finance.
Deputy Director H.D. Palmer said federal funds for unemployment insurance benefits, MediCal, and supplemental security income/state supplementary payment grants for the elderly, blind or disabled will continue uninterrupted.
But while there’s enough money to keep the Supplemental Nutrition Assistance Program – formerly called food stamps – afloat through October for the 1.9 million California households that rely on it, that funding will dry up in November. It’s the same scenario for school nutrition programs that serve 4.5 million meals per day mostly to low-income students. And money for the Women, Infants and Children nutrition program will last only through late November. (I’d link to the SNAP and WIC programs, but the shutdown already has affected their web pages.)
“The longer this goes on, the greater uncertainty there will be for funding some of these programs,” Palmer said Tuesday.
Meanwhile, California – home to more federal employees than Washington, D.C., – will see a lot of government workers not drawing paychecks, and thus unable to spend their money in their communities or pay their bills. Communities near national parks such as Yosemite will suffer even more while those parks are shuttered, cutting off the tourist flow.
But the worst of it come if Congress refuses to raise the nation’s debt ceiling by Oct. 17 and the nation defaults on its debt, Palmer said. The resulting financial market instability could decimate the capital gains and stock options on which California depends for a huge chunk of its tax revenue, he said, blowing a big, red hole in a state budget that only recently was brought back into the black.