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Senate Gears Up for Budget Fight
Tuesday
, March 17, 2009
9:30 PM

Senate Majority Leader Harry Reid (D-NV) today threw down the gauntlet for the upcoming fight over Democrats' soon-to-be unveiled fiscal year (FY) 2010 budget, which is expected to closely reflect President Obama's fiscal plan.

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"Some may criticize the President's budget, yet refuse to offer ideas of their own," said Reid during a floor speech, a likely shot at Minority Leader Mitch McConnell's (R-KY) acknowledgement that his caucus will not offer a full substitute budget alternative. "We may not agree on everything, but I know we can agree that after eight long years of irresponsibility, we must pass a budget that puts the American people first."

Reid told reporters today that a final decision had not been made on whether to use reconciliation protections to move the White House's health care reform initiative or cap-and-trade proposal for greenhouse gas emissions, adding that the Senate Budget Committee will mark up the FY 2010 budget blueprint next week followed by floor action the week of March 30. (The House has a similar schedule for considering its budget resolution.) The leader went on to say that House and Senate negotiators and staffs will have the two-week recess beginning April 6 to prepare a final budget for floor votes the week lawmakers return to Washington.

The president echoed Reid's floor remarks during a speech today following his meeting with House and Senate Budget Chairmen John Spratt (D-SC) and Kent Conrad (D-ND).

"If certain aspects of this budget people don't think work, provide us some ideas in terms of what you'd do," Obama said. "'Just say No' is the right advice to give your teenagers about drugs. It is not an acceptable response to whatever economic policy is proposed by the other party."

Meanwhile, Senate Republicans continued to slam the administration's proposals, arguing that it taxes, spends, and borrows too much.

"It is the biggest tax increase in the history of the country," asserted Finance Ranking Member Chuck Grassley (R-IA).  "They want to make it out just a few wealthy people are going to pay, but eventually the middle class pays."

Republican Whip Jon Kyl (R-AZ) took aim at Obama's cap-and-trade proposal, arguing that the initiative would amount to a tax increase for middle- and low-income taxpayers by raising every household's energy costs by up to $3,128 a year.




Although the administration is not expected to submit its full budget request to Congress until April, one possible proposal has gained increasing attention. White House spokesman Robert Gibbs confirmed today that a controversial provision that is still on the table would allow third-party private insurance companies to pay for veterans' combat-related injuries.

"But no decisions have been made," Gibbs said during today's regular press briefing, adding later that "veterans can be assured that the president understands any concerns that they would have."

The initiative, first revealed during Obama's meeting with veterans service organizations on Monday, received a cool reception by American Legion Commander David Rehbein.

"He says he is looking to generate $540-million by this method, but refused to hear arguments about the moral and government-avowed obligations that would be compromised by it," said Rehbein.




© Copyright Capitol Hill Reports, Inc. (2009). No claim to original government works.