Overnight Finance

Overnight Finance: Budget deal poised to pass Congress

WELCOME BACK TO OVERNIGHT FINANCE — It’s Tuesday and we’ve got news on budget, debt limit, Export-Import Bank and more … Don’t worry, you’ll have plenty of time left to pick up some beer and snacks for Game 1 of the World Series between the Mets and Royals. Game time 8:07 p.m. 


SMOOTH SAILING FOR THE BUDGET DEAL: From The Hill’s Alex Bolton and Mike Lillis: “The House is poised Wednesday to approve a two-year deal to raise spending caps and the debt limit, averting a potential federal default next week and a government shutdown later this year. The legislation, which increases discretionary spending by $112 billion over fiscal years 2016 and 2017, has drawn ire from many Republicans and conservative-leaning advocacy groups for busting spending caps set by the 2011 Budget Control Act (BCA).”

{mosads}But lawmakers on both sides of the Capitol predicted on Tuesday that the bill would pass, carried in the House by a coalition of defense hawks, Democrats and Republicans loyal to outgoing Speaker John Boehner (R-Ohio).

Stayed tuned …

Boehner is pretty much clearing the decks of major fiscal issues for his expected successor Rep. Paul Ryan (R-Wis.) before walking off into the sunset and retirement at the end of the week. 

Boehner recalled Tuesday that he had intended to “clean up the barn” for his successor.

“I didn’t want him to walk into a dirty barn of you know what,” Boehner quipped. “I’ve done my best to try to clean it up.” http://bit.ly/1P3vKOA

On Wednesday, House lawmakers will meet to nominate Ryan as the Speaker-elect with a final vote on the House floor expected on Thursday.

The White House’s deal with Boehner gives Obama a legislative victory and provides him more time to push his trade agenda and other issues during his final year or so in office. 

Good luck Speaker Boehner on breaking par while zipping around in your new golf cart with the MR. SPKR plates. Sunny days and birdies are in the forecast. 

Back to business from earlier in the day on the budget deal …

HOUSE DEM SUPPORT FALLING INTO PLACE: Lillis has the story: “House Democrats are lining up behind a sweeping bipartisan proposal to stave off a federal default and prevent a government shutdown despite initial concerns over entitlement changes.”

Lillis writes that “the support from liberals lends an enormous boost to the deal’s prospects, as Republican leaders will likely need Democratic votes to move the package through the lower chamber in the face of conservative concerns about spending levels.” http://bit.ly/1P3vTl7

REID BACKS LESS-THAN-PERFECT DEAL: The Hill’s Jordain Carney reports: Senate Minority Leader Harry Reid (D-Nev.) threw his support behind the budget deal, while acknowledging that the agreement “is not perfect.” http://bit.ly/1O68r89

WHITE HOUSE URGING PASSAGE: Our White House correspondent Jordan Fabian has the story that the White House is urging lawmakers to pass the sweeping budget-debt limit deal.

“The White House made the economic case for the deal, saying that increasing spending caps would help create 340,000 jobs in 2016. Over the next two years, the economy is expected to add 500,000 job years, according to a Council of Economic Advisers report.” http://bit.ly/1Mh8kjr

PRESIDENT OBAMA GETS IN ON THE ACT: Fabian, again: President Obama urged Congress to immediately pass the budget deal, “calling it the best hope to end the constant battles over government funding that have plagued Washington.”

“I hope both parties come together to pass this agreement without delay,” Obama said. “They’ve got a few days to do it.” http://bit.ly/1N6nf5k

BIDEN JUMPS INTO BUDGET FRAY: via Fabian: Vice President Joe Biden hailed the bipartisan budget agreement “as the best chance to end Washington’s constant budget battles, even though he acknowledged it is not perfect.”

“What we’ve put together is a good deal,” Biden told reporters at the Naval Observatory. 

“No one got everything they wanted. But it will last for two years and it will prevent us from lurching from crisis to crisis.” http://bit.ly/1RdiUfU

HOW DO YOU WANT TO PAY FOR THAT?: From colleague Peter Schroeder: The Congressional Budget Office (CBO) said Tuesday that the two-year budget pact comes up $14 billion short in policy proposals to offset the cost.

“CBO’s analysis determined that, all told, the new deal would increase budget authorization by $89.7 billion. But when adding up the host of policy changes aimed at cutting costs and raising revenue, the CBO only came up with $75.7 billion.” http://bit.ly/1Mh8yqP

THERE’S SUPPORT FOR THE BUDGET DEAL OFF THE HILL, TOO: The Hill’s Sarah Ferris has the story: “The powerful seniors lobby AARP announced Tuesday it will back a two-year budget deal that will go up for a vote as early as Wednesday.”

AARP praised the plan, which was largely negotiated between the White House and GOP leadership, for averting major cuts in Social Security disability payments and a premium spike for Medicare Part B premiums. http://bit.ly/1LX3qZO

But not everyone is happy …

RYAN SAYS BUDGET PROCESS ‘STINKS’: The Hill’s Scott Wong: Rep. Paul Ryan (R-Wis.) is distancing himself from a pending budget deal ahead of his expected election as Speaker this week.

The House Ways and Means Committee chairman criticized how the deal to extend the government’s borrowing limit and increase spending came together, saying “this process stinks” in the interview televised on CNN. http://bit.ly/1RA8CX6

CROP INSURANCE CONCERNS: From Peter Schroeder and me: Agriculture Committee Chairmen Sen. Pat Roberts (R-Kan.) and Rep. Michael Conaway (R-Texas) along with their panels’ ranking members Sen. Debbie Stabenow (D-Mich.) and Rep. Collin Peterson (D-Minn.) have a bone to pick with the budget deal over a proposed $3 billion cut to crop insurance. 

Conaway said the provision was “debated and defeated during the 2014 farm bill process, and to move forward with it now breaks faith with the American producer.” He is working with his colleagues to remove the provision. 

National Corn Growers Association President Chip Bowling called the move “bad policy.” http://bit.ly/1N6noFZ

ZOMBIE BUDGET DEAL: The Club for Growth and Heritage Action called the agreement “the zombie budget deal” and noted that it was brokered by a lame duck speaker and president. 

“If this deal moves forward, it will undermine efforts to unite the party by those promising to advance serious policy reforms,” said Club for Growth President David McIntosh and Heritage Action CEO Michael Needham in a joint statement. 

2016 GOP PRESIDENTIAL CANDIDATES NOT IMPRESSED, EITHER: The Hill’s Ben Kamisar: Republican presidential candidates are slamming the budget bill negotiated by congressional leaders, calling it a grave mistake. http://bit.ly/1O68PDK

SPEAKING OF SAILING: Via The Hill’s Cristina Marcos: The House easily passed legislation that renews the Export-Import Bank’s charter, which expired in June 30. A total of 127 Republicans, a majority, joined with all but one Democrat in the 313-118 vote to revive the once-dying Ex-Im Bank. The legislation would extend the bank’s authority into 2019.

Supporters of the Export-Import Bank used a discharge petition, which allows legislation to skip the committee process and go straight to the floor if a majority in the House backs the petition.

But the bill’s path is still uncertain in the Senate. Senate Majority Leader Mitch McConnell (R-Ky.) has said he won’t give Ex-Im anymore time on the floor. The upper chamber previously approved a renewal of the bank as part of a federal highway funding bill in July that the House didn’t take up. And likely incoming speaker Ryan isn’t a fan of the bank. 

A bill sponsor, Sen. Mark Kirk (R-Ill.) said after the House vote that there is plenty of support in the Senate but passage “is not the final hurdle in keeping American jobs in America.” http://bit.ly/1PPCelV

IN THE NICK OF TIME: From Keith Laing: The House on Tuesday approved a measure to extend federal transportation funding for three weeks in an effort to prevent a highway-funding shutdown. The measure would extend federal transportation spending — currently set to expire Oct. 29 — until Nov. 20. http://bit.ly/1MS2mX1

KEEP AN EYE OUT: From Schroeder: Federal Reserve Chairwoman Janet Yellen will make a special appearance before the House Financial Services Committee on Nov. 4 to discuss the Fed’s role in financial regulation. http://bit.ly/1WgGwGU

MOVE MADE TO IMPEACH KOSKINEN: Schroeder again: House Republicans have moved to impeach IRS Commissioner John Koskinen, arguing he violated the public trust. Oversight Committee Chairman Jason Chaffetz (R-Utah) introduced an impeachment resolution Tuesday, days after the Justice Department concluded its investigation into IRS targeting of Tea Party groups with no charges filed. http://bit.ly/1RA8Qxe

WE’VE GOT OUR EYE ON YOU: From our own Julian Hattem: The head of the IRS told lawmakers on Tuesday that his agency’s use of secretive phone-tracking technology was restricted to specific criminal cases, a day after new questions were raised about its surveillance powers. Before the Senate Finance Committee, IRS Commissioner John Koskinen said that use of the StingRay devices, or “IMSI-catchers,” is limited to the agency’s criminal investigations division to track down money laundering, terrorism and financing of organized crime. http://bit.ly/2091aZa

News from the campaign trail … 

CARSON SAYS HE WOULDN’T RAISE THE DEBT CEILING AS PRESIDENT: In a Jonathan Easley exclusive: GOP presidential candidate Ben Carson said he would not sign any budget deal that raised the debt ceiling if he is elected president.

Carson, who has surpassed Donald Trump in polls of Iowa voters, expressed frustration that Congress waits until the debt limit approaches to negotiate budget deals.

“If I’m elected, in January of 2017, we will begin to address the budget immediately,” Carson said. “We’re not going to wait until October or November to do it, when we’re backed against the wall. And I will make it very, very clear that there will not be any budget signed that increases our debt ceiling. It will have to be done.” http://bit.ly/1XxAKhr

BUSH UNVEILS MEDICARE, SOCIAL SECURITY REFORMS: From The Hill’s Peter Sullivan: “Former Florida Gov. Jeb Bush on Tuesday unveiled an entitlement reform plan that seeks to shore up the finances of Medicare and Social Security. The Republican presidential contender’s plan for Medicare, which comes ahead of the Republican debate Wednesday, would shift the system into what is known as “premium support. That system has also been proposed by Rep. Paul Ryan (R-Wis.) and denounced by Democrats as ending Medicare “as we know it.” http://bit.ly/1M0SFsQ

HANDY-DANDY CHART ON TAXES: From our friends at the Tax Policy Center: A neatly organized cheat sheet of sorts on where all of the 2016 presidential candidates stand on tax policy. Just in time for the GOP debate on Wednesday night, too. Whew, I thought that was gonna be hard. http://urbn.is/1MrrlGk


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Tags Boehner Debbie Stabenow Donald Trump Harry Reid Jason Chaffetz Joe Biden John Boehner Mark Kirk Mitch McConnell Pat Roberts Paul Ryan
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