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TheStreet Open House

As Budget Cuts Loom, Is Government Shutdown Next?

By ANDREW TAYLOR

WASHINGTON (AP) â¿¿ With big, automatic budget cuts about to kick in, House Republicans are turning to mapping strategy for the next showdown just a month away, when a government shutdown instead of just a slowdown will be at stake.

Both topics are sure to come up at the White House meeting Friday between President Barack Obama and top congressional leaders, including Republican House Speaker John Boehner. A breakthrough on replacing or easing the imminent across-the-board spending cuts still seems unlikely at the first face-to-face discussion between Obama and Republican leaders this year.

To no one's surprise, even as a dysfunctional Washington appears incapable of averting a crisis over economy-rattling spending cuts, it may be lurching toward another over a possible shutdown.

Republicans are planning for a vote next week on a bill to fund the day-to-day operations of the government through the Sept. 30 end of the 2013 fiscal year â¿¿ while keeping in place the new $85 billion in cuts of 5 percent to domestic agencies and 8 percent to the military.

The need to keep the government's doors open and lights on â¿¿ or else suffer the first government shutdown since 1996 â¿¿ requires the GOP-dominated House and the Democratic-controlled Senate to agree. Right now they hardly see eye to eye.

The House GOP plan, unveiled to the rank and file on Wednesday, would award the Pentagon and the Department of Veterans Affairs with their line-by-line budgets, for a more-targeted rather than indiscriminate batch of military cuts, but would deny domestic agencies the same treatment. And that has whipped up opposition from veteran Democratic senators on the Appropriations Committee. Domestic agencies would see their budgets frozen almost exactly as they are, which would mean no money for new initiatives such as cybersecurity or for routine increases for programs such as low-income housing.

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