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US budget passes knife-edge procedural vote after Democrats withdraw support US budget passes knife-edge procedural vote after Democrats withdraw support
(35 minutes later)
A rebellion against Wall Street efforts to wriggle free from recent banking reforms picked up momentum in Congress on Thursday as House Democrats dramatically withdrew support for passage of the US budget in a knife-edge procedural vote.A rebellion against Wall Street efforts to wriggle free from recent banking reforms picked up momentum in Congress on Thursday as House Democrats dramatically withdrew support for passage of the US budget in a knife-edge procedural vote.
Republican speaker John Boehner was forced to turn to departing freshman congressman Kerry Bentivolio, a reindeer farmer from Michigan who is reported to be heavily in debt after losing his primary race, to keep the $1.1tn US budget on track by switching his vote at the last minute.Republican speaker John Boehner was forced to turn to departing freshman congressman Kerry Bentivolio, a reindeer farmer from Michigan who is reported to be heavily in debt after losing his primary race, to keep the $1.1tn US budget on track by switching his vote at the last minute.
Sixteen other conservative Republicans voted against the procedural vote needed to hold a final debate and vote on the 1,600-page budget omnibus bill, and it was only Bentivolio’s last-minute switch from no to yes that allowed the ‘rule’ procedure to pass by 214-212 votes. Sixteen other conservative Republicans voted against the procedural measure needed to hold a final debate and vote on the 1,600-page budget omnibus bill, and it was only Bentivolio’s last-minute switch from no to yes that allowed the ‘rule’ procedure to pass by 214-212 votes.
The Republican rebels are angry at their leadership’s reticence to take more immediate steps against President Obama’s immigration reform by using the budget as threat to shut down the government.The Republican rebels are angry at their leadership’s reticence to take more immediate steps against President Obama’s immigration reform by using the budget as threat to shut down the government.
But it was the surprise decision of all House Democrats to oppose the carefully crafted compromise bill that put it in sudden jeopardy. According to senior aides speaking last week, Boehner had been expecting that support from many House Democrats would more than make up for any rebellion on the right on his party.But it was the surprise decision of all House Democrats to oppose the carefully crafted compromise bill that put it in sudden jeopardy. According to senior aides speaking last week, Boehner had been expecting that support from many House Democrats would more than make up for any rebellion on the right on his party.
Yet Democrats are furious at what they see as an attempt by Wall Street lobbyists to insert language into the bill that would reverse parts of the Dodd-Frank banking reform and allow more risky derivative trading to receive government insurance protection.Yet Democrats are furious at what they see as an attempt by Wall Street lobbyists to insert language into the bill that would reverse parts of the Dodd-Frank banking reform and allow more risky derivative trading to receive government insurance protection.
The White House, while insisting Obama does not like the Wall Street component, later confirmed it supported passage of the bill as a whole. Obama spokesman Josh Earnest said on Thursday its passage would “provide certainty to our economy”.The White House, while insisting Obama does not like the Wall Street component, later confirmed it supported passage of the bill as a whole. Obama spokesman Josh Earnest said on Thursday its passage would “provide certainty to our economy”.
Shortly after, Nancy Pelosi said on the House floor that she should not vote for the bill’s final passage. “I’m enormously disappointed the White House feels the only way they could get a bill is to go along with this,” she said.Shortly after, Nancy Pelosi said on the House floor that she should not vote for the bill’s final passage. “I’m enormously disappointed the White House feels the only way they could get a bill is to go along with this,” she said.
Another controversial rider to increase tenfold the amount that political donors can give to parties and candidates has also raised anger among liberals who regard the two buried clauses as classic cases of Washington dysfunction.Another controversial rider to increase tenfold the amount that political donors can give to parties and candidates has also raised anger among liberals who regard the two buried clauses as classic cases of Washington dysfunction.
Whether there is enough anger to prevent passage of the bill entirely is less certain, however. Many Democrats may be unwilling to be blamed for shutting down the government, and Republican whips are working furiously to try to contain the size of their rebellion when the final vote comes up later on Thursday.Whether there is enough anger to prevent passage of the bill entirely is less certain, however. Many Democrats may be unwilling to be blamed for shutting down the government, and Republican whips are working furiously to try to contain the size of their rebellion when the final vote comes up later on Thursday.
The risk of a repeat of last year’s government shutdown is also limited due to the fallback ability of House leaders to pass a short-term continuing resolution that would fund the government until Congress returns with a larger Republican majority in the new year.The risk of a repeat of last year’s government shutdown is also limited due to the fallback ability of House leaders to pass a short-term continuing resolution that would fund the government until Congress returns with a larger Republican majority in the new year.
Yet such a move also carries risks for Democrats and the White House, which fears it would embolden Republicans to use the budget process to attack new policy targets, such as environmental and social programs.Yet such a move also carries risks for Democrats and the White House, which fears it would embolden Republicans to use the budget process to attack new policy targets, such as environmental and social programs.
Nevertheless, the Wall Street clause, which would overturn elements of Dodd-Frank and grant government insurance to parts of the derivatives market, is sufficient provocation for many on the party’s left to draw a line at the current compromise.Nevertheless, the Wall Street clause, which would overturn elements of Dodd-Frank and grant government insurance to parts of the derivatives market, is sufficient provocation for many on the party’s left to draw a line at the current compromise.
Republican deputy whip Tom Cole, who spoke in favour of the bill during debate on Thursday morning, refuted the idea that two contentious elements were only inserted due to Republican pressure.Republican deputy whip Tom Cole, who spoke in favour of the bill during debate on Thursday morning, refuted the idea that two contentious elements were only inserted due to Republican pressure.
“The idea that only Republicans were involved in drafting this is just not the case,” he said. “The reality is the Democratic Senate and the administration have been involved in this at every level.”“The idea that only Republicans were involved in drafting this is just not the case,” he said. “The reality is the Democratic Senate and the administration have been involved in this at every level.”
Louise Slaughter, ranking Democrat on the House rules committee, argued the “behemoth” of a bill was “submitted in the dark of night at the last minute in the hope that we would not find out what was in it.”Louise Slaughter, ranking Democrat on the House rules committee, argued the “behemoth” of a bill was “submitted in the dark of night at the last minute in the hope that we would not find out what was in it.”
“The House of Representatives is about to show us the worst of government for the rich and powerful,” said Senator Elizabeth Warren in a speech on Wednesday that served to rally opposition.“The House of Representatives is about to show us the worst of government for the rich and powerful,” said Senator Elizabeth Warren in a speech on Wednesday that served to rally opposition.
“The House is about to vote on a budget deal, negotiated behind closed doors, that slips in a deal that would let derivative traders working on Wall Street gamble with taxpayer money and get bailed out by the government when their risky bets threaten to blow up our financial system.”“The House is about to vote on a budget deal, negotiated behind closed doors, that slips in a deal that would let derivative traders working on Wall Street gamble with taxpayer money and get bailed out by the government when their risky bets threaten to blow up our financial system.”
Warren claims the clause was written by lobbyists for Citigroup and epitomises what is wrong with Washington’s legislative process.Warren claims the clause was written by lobbyists for Citigroup and epitomises what is wrong with Washington’s legislative process.
“Who does Congress work for?” she added. “Does it work for the billionaires and the giant companies with their armies of lobbyists and lawyers, or does it work for the ordinary people?”“Who does Congress work for?” she added. “Does it work for the billionaires and the giant companies with their armies of lobbyists and lawyers, or does it work for the ordinary people?”