Wednesday, December 22, 2010

2011 WILL BRING REHASHED FIGHTS OVER HEALTHCARE AND THE OBAMA AGENDA


Washington, D.C. -- A Senate deal to fund the federal government until early March doesn't include money to enact the health-care overhaul or stepped up regulation of Wall Street, boosting Republican efforts to curb key elements of President Barack Obama's domestic agenda.  The bill, which also will freeze federal salaries for two years, narrowly passed the House, 193 to 165, several hours after it easily cleared the Senate on an 79 to 16 vote. President Obama was standing by at the White House to sign the measure. The last-minute scramble was required after the Senate last week withdrew a $1.2 trillion omnibus appropriations bill that included more than $8 billion in earmarks.

Democrats last week sought $1 billion to expand federal agencies to cope with health-care demands as part of a proposed $1.1 trillion spending bill. That measure died after Senate Republicans closed ranks against it under pressure from conservative activists.

The doomed budget plan also included spending increases sought by Democratic leaders for two agencies granted new responsibilities by the Dodd-Frank financial-regulation law, passed in response to the Wall Street crisis of 2008-2009.

The proposed short-term funding measure would kick the larger spending debate into the new year, when Republicans will control the House and have more Senate seats. It would also start the bargaining between congressional Republicans and the White House at a lower funding level than the now-defunct Democratic plan.

Obama administration officials could shift money around within federal agencies to keep health care and Wall Street regulation on track. But Republicans could try to block such moves through legislation.

Senate Finance Committee Chairman Max Baucus (D., Mont.) said he was confident Democrats could still win funding battles for health care and financial regulation. "Clearly, the fewer resources devoted to any program, the harder it is to implement it," he said.

Congressional Republicans have said they will try to defund enactment of the health-care law's least popular provisions, particularly Internal Revenue Service efforts to enforce the requirement that most Americans carry health insurance.

Republicans were also looking at cutting funds for the law's expansion of the Medicaid insurance program for the poor, and for subsidies to offset the cost of buying insurance for lower earners. Cuts were also being weighed for a new board that will recommend Medicare spending reductions and for parts of the law arguably tied to coverage of abortion services.

The bulk of the health law's provisions don't get fully under way until 2014. The Department of Health and Human Services has the power to redirect money from other operations to cover gaps in health-law funding.

Democrats worried the funding brawl could erode last year's landmark legislative gains and make for sloppy implementation of the laws.

"The rest of the world is waiting for us to move forward, particularly on financial reform," said Sen. Mark Warner (D., Va).

Key provisions include:

Continued 2010 spending levels for most agencies through March 4, 2011

Provides no funding to launch new health-care law or financial-industry regulations

Adds $1.16 billion beyond 2010 levels for certain programs

Allows Obama administration to transfer money to fund efforts to prevent terrorist attacks on aircraft

Maintains funding for Pell Grant college scholarships

Conclusion:

If you do not consider yourself or your family wealthy persons, you have no business supporting the GOP agenda.



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