Submitted by Conor Kenny on
By Congresspedia assistant editor Avelino Maestas
With the nation’s eyes focused on negotiations over a proposed bailout of the U.S. financial sector, lawmakers worked into the weekend on several other critical pieces of legislation, including a continuing resolution to keep the government running through the election. The Senate also adopted a defense authorization bill, but could not find agreement with the House of Representatives on a series of tax proposals or on a stimulus package. In addition, the trial of Sen. Ted Stevens began Thursday.
Negotiations on the financial rescue bill appeared to break down Friday after House Republicans signaled they would not support the plan presented by the Administration. The Democratic leadership had tentatively approved that same deal, and a vote was expected early next week.
Democrats held out for a number of concessions. The Administration agreed to the need for an oversight board and will not object to limits on executive pay for firms participating in the bailout. Democrats are still hoping to insert language limiting the effort to an initial $300 billion. An additional $400 billion would require a joint resolution of Congress.
Of 12 budget authorization bills, the defense authorization bill is the only one approved by Congress this year. Funding Pentagon operations through Fiscal Year 2009, the $611 billion dollar measure now heads to President Bush for his signature. It also contains $68 billion for the wars in Iraq and Afghanistan. A separate bill will be required to spend the money.
With no hope of approving other budget bills, attention shifted to a continuing resolution. The House and Senate each approved a CR, which President Bush indicated he would sign. Government programs will be funded at their current levels (aside from the Department of Defense, as outlined above) and Congress will not have to address the FY 2009 budget until a new administration is assembled. Lawmakers did not include a ban on offshore oil exploration, something Congress has mandated every year since 1981. President Bush lifted an executive moratorium on the practice earlier this year, meaning oil companies can begin drilling unless a new presidential or congressional ban is enacted.
On Friday, Senate Republicans put the brakes on a $56 billion stimulus package designed to help those hardest hit by the sagging economy. It would have included an extension for unemployment benefits, more money for food stamps and funding to help those with low incomes pay for heating this winter. Later that day, the House approved a similar, $60 billion measure.
The House and Senate also differed on a series of tax-extender bills. The Senate approved a version backed by the White House earlier this week. Members of the House, citing a need to pay for any new spending, have refused to adopt the Senate’s bill and instead moved their own bill through the chamber. At issue was a fix for the Alternative Minimum Tax and an extension of renewable energy tax rebates.
Finally, the trial of Sen. Ted Stevens (R-Alaska) got underway on Thursday. Stevens, accused of falsifying financial disclosure forms, requested an expedited trial. The longest-serving member of the Republican caucus is up for re-election this year, and the trial is expected to be over with a few weeks remaining before the November 4 election. See his profile page for more information about the charges he faces.
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