Obama threatens to veto bill defunding healthcare, Wall St. reforms

The White House on Thursday threatened to veto a 2013 spending bill that defunds President Obama’s signature Wall Street reform legislation and the massive healthcare overhaul that was upheld by the Supreme Court earlier in the day.

The 2013 Financial Services bill is heading to the House floor after being considered by the Rules Committee on Thursday.

“The bill severely undermines key investments in financial oversight and implementation of Wall Street reform to protect American consumers, as well as needed tax enforcement and taxpayer services.  It also hampers effective implementation of the Affordable Care Act (ACA),” the White House statement reads.

The bill contains two healthcare-related riders. One would stop the Internal Revenue Service from preparing to implement the individual mandate that most adults have health insurance. Another would prevent the government from negotiating with insurance companies to set up a multistate plan that provides abortions.

On Wall Street reform, the bill contains $245 million less for the Securities and Exchange Commission than the Obama administration has sought and prevents the SEC from using reserve funding to make up the shortfall.

The bill would also make the controversial Consumer Financial Protection Bureau (CFPB) dependent on the annual congressional spending process by eliminating its independent funding from the Federal Reserve after next year.

On top of these issues, the White House opposes the bill for cutting the White House budget office’s own funding by 10 percent.

It also objects to riders that restrict needle exchange and abortion programs in the District of Columbia.

The administration says the bill violates the Constitution by forbidding presidential signing statements, blocking the appointment of policy czars not subject to Senate confirmation and forcing the disclosure of information subject to executive privilege.

The White House has threatened to veto all the House spending bills so far this year. The bills conform to a top-line spending cap that is $19 billion lower than the August debt-ceiling deal, which the Senate is using to craft its bills.

The difference in funding levels guarantees a contentions battle in the fall that could lead to a government shutdown.

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