Rather a rarity these days, the Republican and Democratic leadership in Congress, with the support of the White House, announced a bipartisan deal today on a 6-month continuing resolution (CR) from October 1, 2012 thru March 31, 2013, which will keep the federal government operating through the election and into the first quarter of 2013. This CR is necessary because Congress has not passed a single appropriations bill for Fiscal Year 2013, which begins on October 1.
What this deal does is take the issue of appropriations off lawmakers’ plates while they deal with the biggest issues of the moment -- whether or not Congress will allow the previously negotiated sequester to take effect on January 2, 2013, as scheduled. This would require automatic across-the-board cuts of 7.8% in non-defense discretionary appropriations and cuts of at least 10% in defense discretionary programs.
If the sequester requirement’s automatic cuts take effect on January 2, under this CR Congress will still be required to enact FY 2013 appropriations for the remainder of the fiscal year, effectively postponing any showdown on the budget until March 31.
Congress has delayed conclusive action with a short-term solution. The road to a long term solution may be rocky and I’ll update you as this develops. You can reach me at [email protected].
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