Senate rejects rival bills to prevent $85B sequester spending cuts

Senate rejects rival bills to prevent $85B sequester spending cuts

The Senate on Thursday rejected rival proposals to stop the sequester, ensuring the $85 billion in automatic spending cuts will begin on Friday.

A bill crafted by Senate Democrats won 51 votes, while a Republican alternative won only 38 votes. Three Democrats — Sens. Mary LandrieuMary Loretta LandrieuLobbying world Former New Orleans mayor: It's not my 'intention' to run for president Dems grasp for way to stop Trump's Supreme Court pick MORE (La.), Mark PryorMark Lunsford PryorMedicaid rollback looms for GOP senators in 2020 Cotton pitches anti-Democrat message to SC delegation Ex-Sen. Kay Hagan joins lobby firm MORE (Ark.) and Kay HaganKay Ruthven HaganNC state senator meets with DSCC as Dems eye challenge to Tillis GOP, Dems locked in fight over North Carolina fraud probe 2020 Dems compete for top campaign operatives MORE (N.C.), who are all up for reelection in 2014 — voted against their party's bill, which fell 51-49.

Senate Majority Leader Harry ReidHarry Mason ReidConstitutional conservatives need to oppose the national emergency Klobuchar: 'I don't remember' conversation with Reid over alleged staff mistreatment Dems wary of killing off filibuster MORE (D-Nev.) also switched his vote to "no," a procedural move that would allow him to bring the bill to the floor in the future. 

Both plans needed 60 votes to advance, and as expected, neither came close to meeting that threshold.

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Democrats did appear more unified than Republicans, who suffered 8 defections because of concerns that their legislation did too little to shield the military from deep cuts. 

Sens. Mark WarnerMark Robert WarnerThe Hill's 12:30 Report — Presented by Kidney Care Partners — Lawmakers scramble as shutdown deadline nears Steel lobby's PR blitz can't paper over damaging effects of tariffs Drama hits Senate Intel panel’s Russia inquiry MORE (Va.) and Max BaucusMax Sieben BaucusOvernight Defense: McCain honored in Capitol ceremony | Mattis extends border deployment | Trump to embark on four-country trip after midterms Congress gives McCain the highest honor Judge boots Green Party from Montana ballot in boost to Tester MORE (Mont.) were the only Democrats who voted for the GOP bill. GOP Sens. John McCainJohn Sidney McCainMark Kelly's campaign raises over M in days after launching Senate bid The Hill's 12:30 Report — Presented by Kidney Care Partners — Lawmakers wait for Trump's next move on border deal Mark Kelly launches Senate bid in Arizona MORE (Ariz.), Mike LeeMichael (Mike) Shumway LeeSenate approves border bill that prevents shutdown Push for paid family leave heats up ahead of 2020 New act can help us grapple with portion of exploding national debt MORE (Utah), Rand PaulRandal (Rand) Howard PaulBusiness, conservative groups slam Trump’s national emergency declaration The Hill's 12:30 Report — Presented by Kidney Care Partners — Trump escalates border fight with emergency declaration On The Money: Trump declares emergency at border | Braces for legal fight | Move divides GOP | Trump signs border deal to avoid shutdown | Winners, losers from spending fight | US, China trade talks to resume next week MORE (Ky.), Kelly AyotteKelly Ann AyotteUS, allies must stand in united opposition to Iran’s bad behavior American military superiority will fade without bold national action Five possible successors to Mattis MORE (N.H.), Ted CruzRafael (Ted) Edward CruzPoll shows competitive matchup if O’Rourke ran for Senate again Democrats veer left as Trump cements hold on Republicans O’Rourke heading to Wisconsin amid 2020 speculation MORE (Texas), Lindsey GrahamLindsey Olin GrahamThe Memo: Trump and McCabe go to war Graham seeks new Rosenstein testimony after explosive McCabe interview Senate confirms Trump pick William Barr as new attorney general MORE (S.C.), Dean HellerDean Arthur HellerTrump suggests Heller lost reelection bid because he was 'hostile' during 2016 presidential campaign Trump picks ex-oil lobbyist David Bernhardt for Interior secretary Oregon Dem top recipient of 2018 marijuana industry money, study finds MORE (Nev.), Marco RubioMarco Antonio RubioOn The Money: Trump declares emergency at border | Braces for legal fight | Move divides GOP | Trump signs border deal to avoid shutdown | Winners, losers from spending fight | US, China trade talks to resume next week Trump declares national emergency at border Democrats veer left as Trump cements hold on Republicans MORE (Fla.) and Susan CollinsSusan Margaret CollinsBusiness, conservative groups slam Trump’s national emergency declaration The Hill's 12:30 Report — Presented by Kidney Care Partners — Trump escalates border fight with emergency declaration On The Money: Trump declares emergency at border | Braces for legal fight | Move divides GOP | Trump signs border deal to avoid shutdown | Winners, losers from spending fight | US, China trade talks to resume next week MORE (Maine) voted against the GOP bill, which failed 38-62.

Congressional leaders say there is no Plan B and that the sequester, as the cuts are known in Washington, will be phased in over the next seven months. Hopes that a government-funding measure could become a vehicle to avert some of the cuts have also faded.

If Congress fails to freeze the cuts, a total of $110 billion in spending reductions to domestic discretionary and defense programs will have been implemented in the fiscal year that began last October and ends on Sept. 30.

The Congressional Budget Office estimates the cuts could cost 750,000 jobs this year.

Following the votes, President Obama said Senate Republicans voted “to let the entire burden of deficit reduction fall squarely on the middle class.

“Today, Republicans in the Senate faced a choice about how to grow our economy and reduce our deficit. And instead of closing a single tax loophole that benefits the well-off and well-connected, they chose to cut vital services for children, seniors, our men and women in uniform and their families,” Obama said in a statement.

Obama will meet with congressional leaders from both parties and chambers on Friday at the White House to discuss the next steps for addressing the sequester.

Senate GOP Leader Mitch McConnellAddison (Mitch) Mitchell McConnellGreen New Deal Resolution invites big picture governing ‘Contingency’ spending in 3B budget deal comes under fire Coulter defends Paul Ryan: This is 100 percent Trump's fault MORE (Ky.) said he will tell Obama in blunt terms that Republicans will not accept additional tax increases after voting for a $620 billion tax hike on New Year’s Day.

“Look: the American people will simply not accept replacing spending cuts agreed to by both parties with tax hikes. And I plan to make all of this clear to the president when I meet with him tomorrow,” McConnell said.

Speaker John BoehnerJohn Andrew BoehnerBill Clinton jokes no one would skip Dingell's funeral: 'Only time' we could get the last word Left flexes muscle in immigration talks Former Ryan aide moves to K street MORE (R-Ohio) says the House will not pass a sequester replacement until the Senate acts.

“Republicans have voted twice to replace the president’s sequester with smarter spending cuts and reforms. But the president and Democrat leaders have failed to pass a solution of their own. It’s time that they do,” he said at a press conference Thursday. “My message at the White House will be the same as what I’m telling you today: It’s time for them to do their job and to pass a bill.”

It’s unclear what Congress will do next to attempt to stop the automatic cuts. Lawmakers and aides said the sequester could last well beyond the end of March.

The Democratic bill to replace the sequester would have reduced spending by $55 billion and raised taxes by $55 billion. Most of the tax revenues would have come from phasing in a 30 percent effective tax rate on incomes between $1 million and $5 million. Adjusted gross incomes above $5 million would have been taxed at a 30 percent effective rate. The bill cut agricultural subsidies by $27.5 billion and defense by the same amount.

The Republican alternative sponsored by Sens. Pat Toomey (R-Pa.) and James InhofeJames (Jim) Mountain InhofeOn The Money: Trump to sign border deal, declare emergency to build wall | Senate passes funding bill, House to follow | Dems promise challenge to emergency declaration Trump to sign border deal, declare national emergency Foreign Affairs chairman: US military intervention in Venezuela 'not an option' MORE (R-Okla.) would have given the president more flexibility to manage the cuts and limited the impact on national security. It would have allowed Obama to shift cuts slated for defense programs to other areas and explicitly prohibited tax or fee increases.

Republicans opposed to the bill, including defense hawks and the party’s top appropriator, said it would do too little to protect defense programs and would give too much of Congress’s authority to Obama.

Ayotte, an ally of McCain, a vocal opponent of defense cuts, circulated a plan to limit the reduction in military spending. She asked for a vote on her bill as well, but the Senate majority leader said he would only allow one if Republicans agreed to lower the threshold for passing any of the three sequester alternatives to 50 votes, a move that would have allowed the Democratic bill to clear the Senate.

McConnell rejected Reid’s condition.

Reid accused Republicans of wanting the sequester to go forward and said there would not be any agreement to replace it until Republicans give ground on tax revenues.

“The Republicans want the sequester to go forward,” he said. “We cannot solve the problems of this country with cuts, cuts, cuts. We’ve cut $2.6 trillion. We need to do more but we’re going to do it in a balanced approach. We cannot continue to hurt the middle class and the poor.”

Some lawmakers think the expiration of government funding on March 27 will give them another opportunity to turn off the sequester.

Senate Appropriations Committee Chairwoman Barbara MikulskiBarbara Ann MikulskiBottom Line Listen, learn and lead: Congressional newcomers should leave the extremist tactics at home The Hill's Morning Report — Pelosi to reclaim Speakership amid shutdown MORE (D-Md.) said that is her hope but that there are no specific plans to pair a sequester replacement with an omnibus spending bill or continuing resolution.

“I would hope it to be but there’s no plan,” Mikulski said when asked whether an omnibus or continuing resolution could be the vehicle for stopping the sequester.

Sen. Charles SchumerCharles (Chuck) Ellis SchumerHouse Judiciary Dems seek answers over Trump's national emergency declaration Mandatory E-Verify: The other border wall Trump says he 'didn't need to' declare emergency but wanted 'faster' action MORE (D-N.Y.) said Senate Democrats will propose deficit-reduction measures to replace the sequester when they bring a budget resolution to the floor next month.

“The debate’s only beginning. In the coming weeks under [Budget Committee] Chairman [Patty] Murray’s [(D-Wash.)] leadership we’ll consider a budget that will keep these issues front and center,” said Schumer. “The budget even more than the debate over sequestration will show the contrast in the two sides’ approach.”

Murray said her budget plan would include a proposal for stopping the sequester.

—Ramsey Cox and Erik Wasson contributed to this report.

This report was last updated at 7:49 p.m.