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Six Month CR Likely to Happen

Both House Republicans and Senate Democrats believe that a six month long Continuing Resolution (CR) may be the best path forward for a gridlocked Congress that appears to be unwilling to make any decisions before the November elections. Such an action would avoid the potential for a government shutdown by delaying consideration of the fiscal 2013 appropriations measures until the “new” Congress convenes in January 2013. It also takes the pressure off for House and Senate members who want to spend much of the next few months campaigning for reelection.

Earlier this week, House and Senate leaders confirmed that they will formally vote on the extended CR when they return from the August Recess. They have also agreed that they will base discretionary funding decisions for the first half of fiscal 2013 (October 2012-March 2013) on the agreed to budget cap of $1.047 trillion. Separately, it appears that the spending cuts attached to expiring tax breaks will not be included in the CR but will, instead, be left to the lame duck Congress to work out.