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Congress Clears Government Funding Bill to Avert Shutdown

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The House passed a nine-week spending bill to avert a U.S. government shutdown, hours before it was set to begin, on a 254 to 175 vote. The legislation passed the Senate earlier Thursday and now heads to President Joe Biden’s desk, Bloomberg News reported. The bill passed both chambers after Democrats dropped an earlier attempt to attach a debt-ceiling suspension to the bill in the face of implacable Republican opposition to that measure. GOP senators blocked a version of the bill containing the debt ceiling language on Monday. The federal government would be kept open through Dec. 3 under the legislation. The bill also contains $28.6 billion for states recovering from hurricanes and wildfires, as well as $6.3 billion to resettle refugees from the U.S. war in Afghanistan.

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House Delays Infrastructure Vote

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House Democratic leaders late yesterday postponed a vote yet again on the bipartisan infrastructure bill amid threats from progressives to tank it as leverage for a separate, larger package to expand social safety net programs, The Hill reported. After a long day of meetings between Speaker Nancy Pelosi (D-Calif.) and the warring centrist and progressive factions of the caucus, as well as with White House staff, Democrats opted to delay a vote planned for Thursday rather than allow an embarrassing public failure on the House floor. Democratic leadership and the White House were hoping they could reach an agreement on a framework for the larger reconciliation bill that would convince House progressives to vote for the Senate-passed bipartisan infrastructure bill. Progressives worry that if they help pass the bipartisan bill before the reconciliation framework is agreed upon, centrists won't help them pass the reconciliation bill packed with progressive priorities. But as the night wore on, a deal on a framework with two key Democratic centrists, Sens. Joe Manchin (W.Va.) and Kyrsten Sinema (Ariz.), remained elusive despite haggling with top White House staff.

Congress Poised to Avert Shutdown Amid Deadlock on Biden Agenda

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President Joe Biden is poised to avoid a disruptive shutdown of the federal government, but deal-making continues on his economic agenda before a planned vote today on an infrastructure package that underscores deep divisions among Democrats, Bloomberg News reported. The Senate will vote this morning -- the eve of the new fiscal year -- to extend government funding until Dec. 3, sending the package to the House and ultimately to Biden’s desk for signature with just hours to spare. Stripped of Republican-opposed language suspending the debt ceiling, the stopgap funding bill is expected to pass both chambers with bipartisan support. That will be the easiest item on Biden’s legislative to-do list. House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer met with Biden at the White House yesterday. Pelosi afterward affirmed her plan to bring to the House floor today the $550 billion infrastructure bill that Biden negotiated earlier this year, which now has become a focal point of tension between the two wings of the party.

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GOP Senators Block Democratic Bill to Fund Government and Suspend Debt Ceiling

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Senate Republicans blocked a Democratic bill that would both fund the government and raise the country’s borrowing limit, escalating a political showdown over the government’s finances just days before it runs out of money, the Wall Street Journal reported. Senate Democrats sought to pass a House-approved stopgap measure that funds the government through Dec. 3, 2021, and suspends the debt limit through Dec. 16, 2022. They are racing to send the legislation to President Biden’s desk before the government’s current funding expires at 12:01 a.m. Oct. 1. While lawmakers in both parties negotiated the short-term government funding, Republicans voted against Monday’s procedural motion in a bid to force Democrats to address the debt limit themselves. With 48 in favor and 50 opposed, the legislation fell short of the 60 votes required to advance in the evenly split chamber. Treasury Secretary Janet Yellen has notified lawmakers that the government may be unable to keep paying its bills on time as early as next month if Congress doesn’t authorize additional borrowing. The failure of the procedural vote Monday could prompt Democrats to decouple the short-term spending measure and the debt-limit vote. House Speaker Nancy Pelosi (D-Calif.) suggested last week that Democrats would do so, saying that Congress would pass a stopgap spending measure before the end of the month to keep the government funded. Senate Minority Leader Mitch McConnell (R-Ky.) said yesterday that Republicans would support the funding measure independent of a debt-ceiling vote. Senate Republicans have almost unanimously lined up against voting to raise the debt ceiling, as a protest against Democrats’ agenda, including the $1.9 trillion coronavirus relief bill Democrats approved earlier this year and the broader $3.5 trillion education, child care, healthcare and climate bill they are now working on.

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Pelosi Sets Thursday Vote on Infrastructure, Eyes Smaller Social Spending Bill

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U.S. House of Representatives Speaker Nancy Pelosi on Sunday set a vote on the $1 trillion bipartisan infrastructure bill for Thursday and voiced confidence it would pass, Reuters reported. Debate on the legislation, which passed the Senate with Democratic and Republican support on Aug. 10 and would help fund road, bridge, airport, school and other construction projects, will begin today, she added. Pelosi has not yet set a date to bring to the floor a larger, $3.5 trillion social welfare and climate bill — the cost of which has divided her fellow Democrats — and said it is still under negotiation. She added it was “self-evident” that the larger spending bill might shrink in size. Both measures are key to Democratic President Joe Biden's economic agenda. Earlier on Sunday, Pelosi said she would not bring the infrastructure bill to a vote until she was sure it would pass, but expressed confidence about its prospects. Democrats have so far failed to reach consensus on the timing of the two measures. Some progressive lawmakers insist the $1 trillion infrastructure bill be held back until the bigger measure is ready. Moderates want the infrastructure bill enacted whatever the progress on the larger package, which includes provisions for expanding health care for children and the elderly and for investing in steps to drastically reduce emissions blamed on climate change. Pelosi did not specifically address how the divisions within the Democratic Party would be bridged, but said the final figure for the larger measure would be lower than $3.5 trillion. The House Budget Committee advanced the larger bill on Saturday, reporting the legislation with a favorable recommendation.
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Pandemic Relief Brought Economic Security to Millions. Some Lawmakers See Lasting Lessons

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Poverty rates have dropped to their lowest level in more than a decade, workers’ wages are rising, children's hunger rates are falling, bankruptcy filings have plummeted, and more people had health insurance in 2020 than the year before, Politico reported. Many Americans of ordinary means are doing markedly better in key areas than they were before the coronavirus shutdowns crippled major parts of the economy, recent data and surveys show, suggesting that the trillions of dollars in government relief in the last year not only kept people afloat but also pushed lots of them further ahead. That’s fueling a debate over what role the government should continue to play in reshaping Americans’ livelihoods. Democrats say the gains offer a case study in what U.S. society could look like if Congress vastly expanded the social safety net — an argument that many are making as lawmakers weigh whether to shell out another $3.5 trillion on programs that would limit families’ child care expenses, make health insurance more affordable and offer permanent tax breaks to families with kids, among other provisions. “You have to concede that these changes are making a difference — that we are inching up a bit, and that there is a discernible reduction of poverty,” said Rep. Danny Davis, an Illinois Democrat who chairs the House Ways and Means subcommittee on worker and family support. “We are investing in the return of our economy.” But Republicans and others who oppose the additional spending on social programs say that enlarging the government safety net through policies like the expanded child tax credit would be prohibitively expensive, leave families dependent on federal money and destroy incentives to work. “The best way out of poverty and to raise the standard of living is not endless government checks but our job opportunities and growing paychecks,” said Rep. Kevin Brady of Texas, the top Republican on the Ways and Means Committee. “That provides unlimited opportunity for families, especially those trying to climb the economic ladder.
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Warren, Cornyn Introduce Bill to Block Judge-Shopping in Bankruptcy

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Senators Elizabeth Warren, a Democrat from Massachusetts, and John Cornyn, a Texas Republican, on Thursday introduced a bill to combat large, corporate entities filing for bankruptcy before judges they believe will be favorable to their interests, Reuters reported. Under the Bankruptcy Venue Reform Act of 2021, big businesses and wealthy individuals would be required to file for bankruptcy in their home states or where their largest assets are located. A version of the bill was introduced in the U.S. House of Representatives in June by Rep. Zoe Lofgren, a Democrat from California, and Rep. Ken Buck, a Republican from Colorado, and has gained some bipartisan support, with four Democrats and three Republicans signing on as co-sponsors. The venue issue has garnered attention in recent months in the chapter 11 case of OxyContin-maker Purdue Pharma, which filed for bankruptcy in White Plains, N.Y., even though it is headquartered in Stamford, Conn. “Wealthy corporations should not be able to run across the country to find a favorable court to file bankruptcy. While they manipulate the system to file for bankruptcy wherever they please, affected communities — like workers, creditors, and consumers — lose,” Sen. Warren said in a statement. The bill would “prevent big companies from cherry-picking courts that they think will rule in their favor and to crack down on this corporate abuse of our nation's bankruptcy laws,” she added. The legislation follows another bill introduced by Warren this year that aims to block litigation shields for owners or insiders of bankrupt companies.

House OKs Debt and Funding Plan, Inviting Clash with GOP

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The House voted to keep the government funded, suspend the federal debt limit and provide disaster and refugee aid, setting up a high-stakes showdown with Republicans who oppose the package despite the risk of triggering a fiscal crisis, the Associated Press reported. The federal government faces a shutdown if funding stops on Sept. 30, the end of the fiscal year — midnight next Thursday. Additionally, at some point in October the U.S. risks defaulting on its accumulated debt load if its borrowing limits are not waived or adjusted. Rushing to prevent that dire outcome, the Democratic-led House passed the measure Tuesday night by a party-line vote of 220-211. The bill now goes to the Senate, where it is likely to falter because of overwhelming GOP opposition. Backed by the White House, the Democratic leaders pushed the package to approval at a time of great uncertainty in Congress. With lawmakers already chiseling away at the $3.5 trillion price tag of President Joe Biden’s broad “build back better” agenda, immediate attention focused on the upcoming deadlines to avert deeper problems if votes to shore up government funding fail. The package approved Tuesday would provide stopgap money to keep the government funded to Dec. 3 and extend borrowing authority through the end of 2022. It includes $28.6 billion in disaster relief for the aftermath of Hurricane Ida and other extreme weather events, and $6.3 billion to support Afghanistan evacuees in the fallout from the end of the 20-year war. While suspending the debt ceiling allows the government to meet financial obligations already incurred, Republicans argued it would also facilitate a spending binge in the months ahead.
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Democrats Tie Government Funding to Debt Bill, GOP Digs In

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Democratic congressional leaders backed by the White House say that they will push ahead with a vote to fund the government and suspend the debt limit, all but daring Republicans who say they will vote against it despite the risk of a fiscal crisis, the Associated Press reported. Congress is rushing headlong into an all-too-familiar stalemate: The federal government faces a shutdown if funding stops at the end of the fiscal year, Sept. 30. At the same time, the U.S. risks defaulting on its accumulated debt load if the borrowing limits are not waived or adjusted. All this while Democratic lawmakers are laboring to shoulder President Joe Biden’s massive $3.5 trillion “build back better” agenda through the House and Senate with stark opposition from Republicans. From the White House, the president backed the congressional leaders’ plan to hold the votes. The magnitude of the challenges ahead and the speed required to accomplish the job are like nothing Congress has faced in recent memory, situating Biden’s entire domestic agenda and the political fate of his Democratic party at a crucial moment. As Democrats charge ahead, the Republicans as the minority party in Congress hoping to regain control in the next election in 2022 plan to sit back, watching and waiting to see if Biden and his allies can succeed against the odds — or spectacularly fail. Senate Republican leader Mitch McConnell said he’s not about to help pay off past debts when Biden is about to pile on more with a “reckless” tax and spending package. The vote this week on funding to keep the government running past Sept. 30 and allow more borrowing will force the political stalemate into the open. The Treasury Department warned that it will soon run out of cash-on-hand, and have to rely on incoming receipts to pay its obligations, now at $28.4 trillion. That could force the Treasury to delay or miss payments.
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