Appropriations

A liberal think tank is calling on Congress to embrace a $382 billion stimulus plan to lower unemployment. 

The call from the liberal Demos group comes as the White House and congressional Democrats and Republicans argue over how greatly to cut this year's spending. House Republicans have proposed a total of $61 billion in cuts this year, while the White House has agreed to a total of $10.5 billion in cuts. 

Officials with Demos told reporters on a conference call that their new stimulus plan would create 8.2 million government jobs over two years while lowering unemployment from 8.9 percent to 4.5 percent. 

They also said it would be politically popular.

“Poll after poll indicates the American people want job creation over other national goals, including deficit reduction,” Demos Vice President Tamara Draut told reporters. 

The spending debate will continue to be the hot topic on Capitol Hill in the days ahead. The gap between the two parties appears significant, but with both sides wanting to avoid a shutdown, the haggling will continue in earnest all week.

The Senate is planning a pair of test votes Tuesday on two spending packages. The one passed by the Republican-led House would cut $61 billion this year, while another, pushed by the White House, would cut $6.5 billion over the same time frame. Republicans leaders were quick to dismiss the administration’s proposal Friday, and the test votes should crystallize where lawmakers stand.

The spending debate will be the subject of two hearings on Tuesday. The Senate Budget Committee will welcome the architects of the deficit reduction package from President Obama’s fiscal commission — former Sen. Alan Simpson (R-Wyo.) and former Clinton Chief of Staff Erskine Bowles.

A death knell rang out Friday for high-speed rail in Florida as Gov. Rick Scott (R) rejected billions in federal economic stimulus funds. 

Scott rejected $2.4 billion in federal funding this morning shortly after the Florida Supreme Court ruled that the governor didn't have to accept the money designated for a high-speed rail line between Tampa and Orlando, which was supposed to be completed by 2015. 

"The governor is gratified that the court provided a clear and unanimous decision, he is now focused on moving forward with infrastructure projects that create long-term jobs and turn Florida’s economy around," Scott said in a statement. 

Sen. Bill Nelson (D-Fla.) has been fighting Scott's decision of nearly two weeks ago and asked Transportation Secretary Ray LaHood on Thursday to consider an additional week to find a way to funnel the money to the project, which he says would create about 24,000 jobs. 

President Obama said Wednesday he was pleased the House and Senate had passed a two-week spending bill but said a series of short-term funding measures is not the right way to govern.
 
Obama called on congressional leaders to begin meeting "immediately" with Vice President Biden, White House Chief of Staff Bill Daley and Budget Director Jack Lew to hammer out a spending bill funding the government through Sept. 30.
 
“I’m pleased that Democrats and Republicans in Congress came together and passed a plan that will cut spending and keep the government running for the next two weeks. But we cannot keep doing business this way,” he said. “Living with the threat of a shutdown every few weeks is not responsible, and it puts our economic progress in jeopardy.”
 
Obama laid out a vision of a longer-term spending bill that is "free of any party's social or political agenda" — seemingly referring to provisions relating to healthcare reform and abortion funding.
 
“This agreement should cut spending and reduce deficits without damaging economic growth or gutting investments in education, research and development that will create jobs and secure our future. This agreement should be bipartisan, it should be free of any party’s social or political agenda, and it should be reached without delay,” he said.
 
 

Secretary of State Hillary Clinton and Senate Foreign Relations Chairman John Kerry (D-Mass.) on Wednesday decried House GOP cuts to the foreign affairs budget passed as part of a seven-month spending bill last month.

Kerry described the cuts, which he said will decimate food and health aid for the global poor, are un-Christian.

“There is something about these cuts that does violence to the Judeo-Christian ethic so many people claim to uphold,” Kerry said.

“As I have told Speaker Boehner and Chairman Rogers and many others, the 16 percent cut to state and USAID would be devastating to our national security,” Clinton said.

“Now, there have always been moments of temptation in our country to resist obligations beyond our border,” she added, noting how the United States walked away from Afghanistan in the Cold War. “But those savings came at an unspeakable cost — one we are still paying, 10 years later, in money and lives.”

She said that beyond the humanitarian and moral ground for aid, helping developing countries serves strategic interests. “We are in a competition with China,” she said. She noted that China is wining and dining leaders and if the United States pulls back from engagement, it will hurt our influence in the world.

“I understand and agree that the American people are rightly and naturally concerned about our national debt ... now would be absolutely the wrong time to pull back,” Clinton said.

At the hearing, Clinton and Kerry said that Libyan leader Moammar Gadhafi must step down without delay.

“He has lost all legitimacy. We cannot be half-way about that goal,” Kerry said.

“We have joined the Libyan people in demanding Gadhafi must go — now without further violence or bloodshed,” Clinton said.

Kerry called for an international no-fly zone over Libya and Clinton said that no options are off the table.

Kerry said that despite the U.S. deficit, the Congress must supply a package of increased aid to the Middle East to aid the transition to democracy begun by the revolutions in Egypt and Tunisia.

“We can either pay now … or we will certainly pay later in much higher terms,” Kerry said.

He added that $53 billion for international affairs “is in fact a very small investment for the type of return we get.”

A new poll out Tuesday commissioned by the Public Broadcasting Service has found that voters opposes House Republican efforts to eliminate funding for public broadcasting, a provision included in the seven-month continuing resolution passed last month.

The poll, conducted by Hart Research and American Viewpoint, found 69 percent of respondents opposed to the plan to eliminate funding. This includes 83 percent of Democrats, 69 percent of Independents and 56 percent of Republicans surveyed.

The poll found that 82 percent of the public think deficit reduction needs to be a top priority.

It finds support for PBS ranks second only to “the country’s military defense," by 73 percent to 81 percent. 

The poll surveyed 809 registered votes from Feb. 11-13.

Sen. Tom Coburn hailed a new report detailing wasteful spending he estimates could help save as much as $100 billion.

As Congress begins a weeklong budget debate, a Democratic Senator is proposing a 5 percent cut from Congress' budget for the rest of the year, joining a Republican lawmaker. 

Sen. Ben Nelson (D-Neb.), chairman of the Senate Appropriations Subcommittee on the Legislative Branch, said Monday he is seeking the spending cuts that would affect lawmakers offices and is one of 12 appropriations bill considered each year. 

"I cut spending for Congress last year. I’m pushing for further cuts this year in Congress’ budgets, and will be back at it again next year," he said.

Mark Zandi said the spending bill that passed the House would run the risk of a new recession if enacted.

Senate Democrats are "encouraged" by bill from Republicans to avoid a shutdown; legislation embraces proposals from Obama.