House Republican Conference Vice Chair Cathy McMorris Rodgers (Wash.) on Thursday criticized Democratic leaders for failing to construct a budget as the debt limit on Wednesday soared above $13 trillion. 

"We can no longer assume that government spending and borrowing are problems that will take care of themselves," she said in prepared remarks. "The budget situation has changed and Congress must change with it. A good first step would be for the Majority to put forward a budget." 

The Treasury Department on Thursday announced it has issued $106 billion in Build America Bonds, through May 31, 2010. 

The bonds now constitute 21 percent of the municipal bond market. 

Speedway Convenience Stores sent an additional 1.7 million signatures to lawmakers on Thursday as part of a petition to reform credit and debit card swipe fees. 

Today's action brings the total to 5.4 million signatures, the largest number ever collected for a public policy petition. 

Louisiana Sen. David Vitter (R) applauded the efforts by BP and the federal government to move ahead with a barrier island proposal to slow the spread of oil to the coastline. 

"This is very positive, if long overdue," Vitter said in a statement Thursday. "I'm happy the president finally heard our plea to cut through the bureaucratic red tape."

The next challenge for the plan is to get the Army Corps of Engineers and other groups involved to move quickly on the dredging to create the barriers. 

"I'll be pushing the Corps extremely hard on this," Vitter said. 

During the Memorial Day break, the Business Roundtable spoke with senators in hopes of stripping a series of tax increases on U.S. multinational companies from the so-called tax extender bill.

"We think it is absolutely counter-productive to shoot the portion of the U.S. economy that right now is doing better than the rest of the economy because they are participating in those markets around the world that are growing," Business Roundtable President John Castellani told The Hill, adding, "This is a direct hit on their competitiveness." 

The U.S. non-manufacturing sector expanded for the fifth straight month in May, matching the growth of March and April, and factory orders also rose, providing positive signs for job growth. 

The index for the service industries sector, which makes up the bulk of the economy, held at 55.4 for the third straight month, according to figures released Thursday by the Institute for Supply Management (ISM). A reading greater than 50 signifies growth.

During the past three months the service sector has grown at its fastest pace since 2006 but it is still lagging behind the gains in manufacturing, which is growing faster than expected behind positive numbers in production, new orders and employment in May. 

Factory orders rose 1.2 percent in April, according to the Commerce Department. 

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Federal Reserve Chairman Ben Bernanke will discuss the state of the economy next week on Capitol Hill. 

Bernanke will appear before the House Budget Committee at 10 a.m. Wednesday, according to an announcement by the panel Thursday.  

On Monday, off the Hill, the Fed chairman will be interviewed by former ABC newsman Sam Donaldson, president of the Wilson Council, at the Woodrow Wilson Center Board and Council dinner in Washington. 

In an effort to slow the spread of the oil spill to the shoreline, BP will pay the estimated $360 million for the federal government's barrier island proposal. 

U.S. government officials are planning the construction of six sections of the Louisiana barrier island proposal and BP will make payments in stages as the project progresses, but "will not manage or contract directly for the construction of the island sections, nor will the company assume any liability for unintended consequences of the project," BP said in a release. 

"BP is committed to implementing the most effective measures to protect the coastline of Louisiana and reduce the impact of the oil and gas spill in the Gulf of Mexico," BP CEO Tony Hayward said in a release. "The federal government and the state of Louisiana have agreed that the barrier islands construction is an effective response to the spill and we look forward to working with them on this project." 

BP has paid $170 million to Louisiana, Alabama, Mississippi and Florida for response costs and to promote tourism. The company has paid about $42 million in compensation to those affected by the spill, according to the release. 

The cost of the oil spill is nearing, and may surpass, $1 billion. BP reported spending $960 million in the latest figures released earlier this week.

States across the country are facing their toughest fiscal situation since the Great Depression.