Congress Passes Continuing Resolution to Keep Federal Programs Running

Senate Amendment to Cut Discretionary Spending Fails   The House and Senate passed a Continuing Resolution (CR) to provide funds to continue the operation of the federal government until December 3.  The CR is necessary because Congress has failed to enact any of the 12 appropriations bills for FY 2011. Under the terms of the CR most government programs will continue to be funded at FY 2010 levels.  One federal program monitored by AGC will see a decrease in funding levels; the Department of Defense Base Closure and Realignment (BRAC) will see a decrease in the amount available from over $7 billion in FY 2010 to a rate equal to $2.35 billion, the FY 2011 administration budget request.  Congress intends to wrap up the 12 unfinished appropriations bills in a large omnibus during the lame-duck session after the November 2elections, which is tentatively scheduled to start in mid-November. As Congress continues to look at ways to cut spending, their focus is likely to turn to limiting discretionary spending in the federal budget.  An example of this approach occurred during Senate debate of the CR through an amendment offered by Senator John Thune (R-S.D.). The Thune amendment proposed a 5 percent across-the-board cut in discretionary spending, excluding defense, homeland security and veterans' programs. The amendment - which required 60 votes to pass - failed by a vote of 51-48, with eight Democrats voting yes.  AGC is continuing to push for full spending bills.