Government Shutdown Possible

Following a late-night meeting at the White House yesterday and another this afternoon between President Obama, Speaker of the House John Boehner, and Senate Majority Leader Harry Reid there is still no deal on a budget compromise for the remainder of fiscal year (FY) 2011.  If a deal is not struck by midnight on April 8, the Federal government will shut down. In an attempt to avoid a shutdown the House Republicans passed a one-week continuing resolution by a vote of 247–181.  The latest CR, which cuts $12 billion from the budget, will continue to fund the government through April 15 and will fund the Department of Defense for the remainder of FY 2011.  Of the $12 billion in cuts in the latest CR, $1.8 billion is from the Department of Transportation and $222 million from the U.S. Army Corps of Engineers Civil Works Program. The endgame for both the short-term CR and a deal on funding for the remainder of FY 2011 remains extremely unsettled.  As negotiations continue on a spending agreement for the remainder of the fiscal year, the President issued a veto threat against the House-passed, one-week CR.  That veto threat all but ensures that unless a deal between the White House, Speaker Boehner, and Majority Leader Reid is reached, the government will shut down on Saturday April 9. For more information, contact Sean O’Neill at oneills@agc.org.