Last week saw Democratic collapses in Congress on the federal budget and the energy bill as Senate Republicans and President Bush held the line against Democratic-backed changes to federal spending and energy policy. Time, however, is running out for Congress to pass the overdue federal budget before the Christmas recess, and both sides may be looking to cut a deal. Democrats were on the losing side after a number of other dustups as well, notably the alternative minimum tax, an expansion for children’s health coverage, and the 2007 Farm Bill.

Ethics and corruption showed staying power on the national stage once again, with the trial of one lawmaker delayed; the House page program once again embroiled in controversy; and the White House on the receiving end of two contempt citations.

Federal budget
The 2008 federal budget [3] was supposed to kick in at the beginning of the government's fiscal year on October 1. The Democratic-controlled Congress has been unable to pass one, however, in the face of vetoes and veto threats by President Bush and the hard line taken by Senate Republicans, who have refused to consider any spending above what Bush requested for his budget. Continuing resolutions that extend last year's budget have been passed to keep the government running, and Bush signed another one on Friday that lasts one week. He took the opportunity to say that Congress ought to pass a continuing resolution for the entire year if they can't approve a budget.

Congressional Democratic leaders are now focused on passing an omnibus spending bill that would comprise the remaining bulk of the federal budget (the budget for the Defense Department - sans funding for Iraq and Afghanistan - has already been passed) and includes $11 billion in domestic spending for popular programs like heating oil assistance and Head Start.

Bush threatened a veto before the bill was even introduced, citing the spending that exceeds his request, and Sen. Minority Leader Mitch McConnell [4] (R-Ky.) said the plan was fiscally irresponsible. On Tuesday, House Appropriations Committee Chairman David Obey [5] (D-Wisc.) basically said "screw it" and made a different proposal: fund the federal government at Bush’s recommended level, including money for Afghanistan, but strip out lawmakers’ earmarks, essentially calling McConnell's bluff (if that's what it was). Representatives from both sides of the isle, however, howled in protest, offering the argument that earmarks – largely projects in home districts funded by Congress – are one way of showing constituents that lawmakers are working for residents.

Pelosi and Reid are now working on a spending package that’s more inline with Bush’s spending recommendations, with some additional funding for veterans' programs that's politically sacrosanct.

Energy Bill
The third time was a charm on comprehensive energy legislation [6], which Republicans twice successfully filibustered. In order to pass the bill, Senate Majority Leader Harry Reid [7] (D-Nev.) had to remove a requirement that utility companies provide 11% of their funding from renewable sources by 2020, and another measure that would have ended a $13.5 billion subsidy for oil and gas companies. The watered down bill still requires automobile companies to build more fuel-efficient vehicles, with a benchmark of 35 miles-per-gallon within 13 years.

The House, which passed a version of the legislation that included the measures stripped by the Senate, must vote on the Senate version before it can go to Bush for his signature.

Senate moves towards holding Bush aides in contempt in US Atty investigation
The Senate Judiciary Committee this week approved two contempt citations [8] regarding an investigation of the firing of several federal prosecutors. By a 12-7 vote, the committee approved citations for Karl Rove, Bush’s former chief political strategist, and Josh Bolten, the president’s chief of staff. Floor votes are now pending for White House contempt charges in both chambers of Congress.

The investigation stems from the forced resignation of several U.S. Attorneys General, and whether political motivations played a role in the ousted state attorneys. The Judiciary Committee’s ranking member, Arlen Specter [9] (R-Pa), and fellow Republican Charles Grassley [10] joined Democrats on the panel in voting for the citations.

Trial of Rep. Jefferson delayed
The trial of Rep. William Jefferson [11] was delayed until February 25, giving the nine-term Democrat an additional six weeks to prepare his defense. Jefferson stands accused by prosecutors of taking more than half a million in bribes (and demanding millions more) from companies seeking Jefferson's public support for various business deals in Africa (see Jefferson's Congresspedia profile [12] for the full details of the alleged schemes).

Two new members of Congress elected
In special elections last week, Republicans held on to two seats vacated by deaths earlier this year: Bob Latta [13] will replace Rep. Paul Gillmor [14] (R-Ohio) and Robert Wittman [15] will replace Rep. Jo Ann Davis [16] (R-Va.).

Latta and Wittman were sworn into office on Thursday.