As Budget Cuts Loom, Is Government Shutdown Next?
By ANDREW TAYLOR
WASHINGTON (AP) 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 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 or else suffer the first government shutdown since 1996 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.Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV