End of Congressional Session Brings Huge Spending Spree
NAAOP
Description
Collection
Title:
End of Congressional Session Brings Huge Spending Spree
Creator:
NAAOP
Date:
10/7/2008
Text:
Congress went into recess late last week after passing two financial bills
meant to address the current economic crisis and to fund federal programs
into the next administration.
On Friday afternoon, the House approved by a vote of 263-171 a $700 billion
bailout/rescue package for the nation's financial system. 172 Democrats and
91 Republicans voted to pass the Emergency Economic Stabilization Act of
2008, just four days after the House defeated a similar proposal. On
Wednesday, the Senate passed the bill by a vote of 74 to 25 after adding the
Tax Extenders and Alternative Minimum Tax Relief Act of 2008 and the Energy
Improvement and Extension Act of 2008. These bills were being prepared all
year long, but were attached to the rescue package as a sweetener to attract
the votes of additional Members of Congress. The President quickly signed
the bill on Friday afternoon.
Based on the stock market's reaction on Friday and the beginning of this
week to the passage of this bill, it would appear that the economy is in for
a difficult time. How the economic downturn will affect the prospects for
health care reform in the coming Congress or the Medicare debate scheduled
to occur in 2009 is anyone's guess, but these debates will presumably be
much tougher in light of the financial pressures facing the country.
Also last week, President Bush signed a Continuing Resolution (CR) set to
expire in March of 2009. The CR funds at FY 2008 levels all federal programs
for which a separate appropriations bill was not passed. The package only
includes full FY 2009 appropriations bills for Military Construction and
Veterans Affairs, the Department of Defense and the Department of Homeland
Security. This means that the incoming Congress and the new President,
whoever that may be, will need to immediately address FY 2009 federal
spending on agencies such as the National Institutes of Health, the
Department of Health and Human Services, the Department of Labor and the
Department of Education.
On another fiscal issue, the Senate failed to reach cloture on a separate
economic stimulus package. This means that not enough Senators were willing
to bring the bill to a vote on the merits of the legislation and killed the
bill on a procedural vote. The stimulus package contained a temporary
increase of 1% in the Medicaid FMAP, a formula that determines how much
money the federal government sends the states to match the amount they spend
on Medicaid beneficiaries. This 1% increase amounted to over $19 billion in
additional spending over a five year period.
Before leaving Washington for the Congressional recess, Senate Majority
Leader Harry Reid (D-NV) announced that the Senate will be in session from
November 17-19 for organizational purposes for the new Congress and to
provide orientation for newly elected senators. There is a small chance that
this will offer the Senate the ability to continue to debate legislation,
but the House is not expected to return again until next year, unless the
economy forces them back into session.
www.naaop.org
meant to address the current economic crisis and to fund federal programs
into the next administration.
On Friday afternoon, the House approved by a vote of 263-171 a $700 billion
bailout/rescue package for the nation's financial system. 172 Democrats and
91 Republicans voted to pass the Emergency Economic Stabilization Act of
2008, just four days after the House defeated a similar proposal. On
Wednesday, the Senate passed the bill by a vote of 74 to 25 after adding the
Tax Extenders and Alternative Minimum Tax Relief Act of 2008 and the Energy
Improvement and Extension Act of 2008. These bills were being prepared all
year long, but were attached to the rescue package as a sweetener to attract
the votes of additional Members of Congress. The President quickly signed
the bill on Friday afternoon.
Based on the stock market's reaction on Friday and the beginning of this
week to the passage of this bill, it would appear that the economy is in for
a difficult time. How the economic downturn will affect the prospects for
health care reform in the coming Congress or the Medicare debate scheduled
to occur in 2009 is anyone's guess, but these debates will presumably be
much tougher in light of the financial pressures facing the country.
Also last week, President Bush signed a Continuing Resolution (CR) set to
expire in March of 2009. The CR funds at FY 2008 levels all federal programs
for which a separate appropriations bill was not passed. The package only
includes full FY 2009 appropriations bills for Military Construction and
Veterans Affairs, the Department of Defense and the Department of Homeland
Security. This means that the incoming Congress and the new President,
whoever that may be, will need to immediately address FY 2009 federal
spending on agencies such as the National Institutes of Health, the
Department of Health and Human Services, the Department of Labor and the
Department of Education.
On another fiscal issue, the Senate failed to reach cloture on a separate
economic stimulus package. This means that not enough Senators were willing
to bring the bill to a vote on the merits of the legislation and killed the
bill on a procedural vote. The stimulus package contained a temporary
increase of 1% in the Medicaid FMAP, a formula that determines how much
money the federal government sends the states to match the amount they spend
on Medicaid beneficiaries. This 1% increase amounted to over $19 billion in
additional spending over a five year period.
Before leaving Washington for the Congressional recess, Senate Majority
Leader Harry Reid (D-NV) announced that the Senate will be in session from
November 17-19 for organizational purposes for the new Congress and to
provide orientation for newly elected senators. There is a small chance that
this will offer the Senate the ability to continue to debate legislation,
but the House is not expected to return again until next year, unless the
economy forces them back into session.
www.naaop.org
Citation
NAAOP, “End of Congressional Session Brings Huge Spending Spree,” Digital Resource Foundation for Orthotics and Prosthetics, accessed November 1, 2024, https://library.drfop.org/items/show/229651.
