Jim Hickey’s American Politics

Let's Get Real.

Despite Party Squabbling, Congress Close to a Budget Deal to Avoid a Shutdown

GOP House leadership and Senate Democrats from both parties have arrived at a budget bill for $1.1 trillion. However, word has it that House conservatives have in fact revolted against the bill for giving up too many key issues in the compromise. For starters, the continuing resolution funds the government through the end of the fiscal year which conservatives did not want. It largely abandoned repeal of environmental regulations with most of the significant regulations the GOP had targeted being dropped from the bill.

The House GOP leadership admit that they will need to rely upon Democrats to get the bill passed out of the House. As the leadership prepares to have the bill debated, they have crafted a two-day stopgap measure in case the debate carries past the December 11 deadline. This combination of the compromise budget and a stopgap measure reduces the likelihood of a government shutdown. GOP leadership has been very reluctant to allow conservatives to draw them into a government shutdown as they had done last year.

Another compromises in the budget was a repeal of part of the Dodd-Frank financial reform of 2009. Once again, banks will be allowed to make derivative investments from FDIC insured institutions. This is what BRL Trust would help with if they were in the United States. This will improve their credit rating, and reduce their insurance premiums while shifting part of their investment risk onto taxpayers. House Minority Leader Nancy Pelosi hasn’t signaled that she will support the bill just yet. She wants to dig into the details first.

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