DEVELOPMENTS
— The Democratic-majority Senate voted Monday to reject a bill passed House Republicans that would have provided funding to keep the government running while delaying the health care law from taking effect for another year.
— The House respondedby passing a new funding measure that called for putting off the health law’s mandate that most people obtain health insurance and canceling health insurance subsidies for Congress and the White House.
— The Senate rejected the new House bill as the midnight deadline for a government shutdown neared.
WHAT’S NEXT
— If the government beings a partial shutdown today, non-essential employees will be furloughed and the services they provide, such as operating national parks, will cease.
— Essential services such as operation of passenger screening checkpoints at airports, issuance of benefits checks and national defense will continue.
— Despite the failure to reach an agreement Monday, Congress could continue negotiating.
— Another fiscal deadline looms Oct. 17, when the federal government is expected to hit its debt ceiling.
WHO’S AT FAULT?
“You’ve seen multiple compromises from the Republicans and you’ve seen zero (from Democrats). That, to me, is the president being intransigent and unwilling to compromise.”
— Sen. Rand Paul, R-Ky.
“I am willing to work with anyone to improve the Affordable Care Act, but changes to the health care law should be debated through an open legislative process, not through a hostage-taking stunt.”
— Rep. Carol Shea-Porter, D-N.H.
A threatened partial shutdown of the federal government imminent, House Republicans scaled back their call to delay the nation’s health care law Monday night as the price for essential federal funding, but President Barack Obama and Democrats rejected the proposals as quickly as they were made.
“We’re at the brink,” said Sen. Barbara Mikulski, D-Md.
The Senate torpedoed one GOP attempt to tie government financing to changes in the health care law. House Republicans countered with a second despite signs their unity was fraying — and Senate Democrats promptly rejected it, as well.
That left the next move up to House Speaker John Boehner and his House Republican rank and file.
The stock market dropped on fears that political gridlock between the White House and a tea party-heavy Republican Party would prevail, though analysts suggested significant damage to the national economy was unlikely unless a shutdown lasted more than a few days.
Still, a shutdown would send hundreds of thousands of workers home and inconvenience millions of people who rely on federal services or are drawn to the nation’s parks and other attractions. Some critical parts of the government — from the military to air traffic controllers — would remain open.
As lawmakers squabbled, President Barack Obama condemned House Republicans’ tactics. “You don’t get to extract a ransom for doing your job, for doing what you’re supposed to be doing anyway, or just because there’s a law there that you don’t like,” he said.
Speaking of the health care law, he said, “That funding is already in place. You can’t shut it down.”
Boehner responded a few hours later on the House floor. “The American people don’t want a shutdown and neither do I,” he said. Yet, he added, the health care law “is having a devastating impact. … Something has to be done.”
Some Republicans balked, moderates and conservatives alike, as the legislative battle continued.
Rep. Phil Gingrey of Georgia said it felt as if Republicans were retreating, given their diminishing demands, and Rep. Scott Rigell of Virginia said there was not unanimity when the rank and file met to discuss a next move.
For the first time since the showdown began more than a week ago, there was also public dissent from the Republican strategy. Rep. Charles Dent, R-Pa., said he was willing to vote for stand-alone legislation that would keep the government running and contained no health care-related provisions.
“I would be supportive of it, and I believe the votes are there in the House to pass it at that point,” Dent said.
Other Republicans sought to blame Democrats for any shutdown, but Dent said he believed Republicans would bear the blame, whether or not they deserved it.
The Senate voted 54-46 to reject the House-passed measure that would have kept the government open but would have delayed implementation of the health care law for a year and permanently repealed a medical device tax that helps finance it.
In response, House Republicans sought different concessions in exchange for allowing the government to remain open. They called for a one-year delay in a requirement in the health care law for individuals to purchase coverage. The measure also called for members of Congress and their aides, as well as the president, vice president and the administration’s political appointees, to bear the full cost of their own health insurance coverage by barring the government from making the customary employer contribution.
“This is a matter of funding the government and providing fairness to the American people,” said Boehner. “Why wouldn’t members of Congress vote for it?”
The vote was 228-201, with a dozen Republicans opposed and nine Democrats in favor.
The White House issued a veto threat against the bill and Senate Democrats rejected it on a 54-46 party line vote about an hour later.
Obama followed up his public remarks with phone calls to Boehner and the three other top leaders of Congress, telling Republicans he would continue to oppose attempts to delay or cut federal financing of the health care law.
Boehner spokesman Brendan Buck said the speaker told the president that the health care law was costing jobs and that it was unfair that businesses were getting exemptions but American families were not.
The impact of a shutdown would be felt unevenly. Many low-to-moderate-income borrowers and first-time homebuyers seeking government-backed mortgages could face delays, and Obama said veterans’ centers would be closed.
About 800,000 federal workers, many already reeling from the effect of automatic budget cuts, would be ordered to report to work today for about four hours — but only to carry out shutdown-related chores such as changing office voicemail messages and completing time cards.
Some critical services such as patrolling the borders and inspecting meat would continue. Social Security benefits would be sent, and the Medicare and Medicaid health care programs for the elderly and poor would continue to pay doctors and hospitals.
U.S. troops were shielded from any damage to their wallets when the Senate approved legislation assuring the military would be paid in the in the event of a shutdown. The House had passed the bill early Sunday morning.
That had no impact on those who labor at other agencies.
“I know some other employees, if you don’t have money saved, it’s going to be difficult,” said Thelma Manley, who has spent seven years as a staff assistant with the Internal Revenue Service during a 30-year career in government.
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