House to Put Spending on Auto-Pilot for 6 Months

by InvestorPlace Staff | September 13, 2012 9:48 am

investorpoliticsletters2 House to Put Spending on Auto Pilot for 6 Months[1]In what will almost certainly be its last significant move before the November election, the House of Representatives will vote today on a six-month spending bill[2].

The six-month bill is needed to avoid a government shut-down on September 30. It will fund the daily operating budgets of Cabinet agencies typically funded through 12 appropriations bills. It also breaks with the Ryan budget plan ideal, as it permits spending at a rate that is $19 billion more than that plan. It will allow spending at the budget caps negotiated last summer between President Barack Obama and the House. The measure being discussed will actually increase spending by 0.6%. Typically, short-term spending bills do not increase the rate of spending.

The bill is expected to be easily passed by the Senate, and then it will be back to the campaign trails for Congress.

Also being considered today is a bill aimed at dodging the fiscal cliff. This bill, though, has little chance of passing. It would turn off $100 billion in automatic spending cuts in January, but only if a separate series of spending cuts was passed. The goal seems to be to avoid a spending bill during the post-election lame-duck Congress session.

For more information, check out this Associated Press story[3].

– Benjamin Nanamaker, InvestorPlace Money & Politics Editor

The opinions contained in this column are solely those of the writer.

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Endnotes:
  1. [Image]: mailto:letters@investorplace.com
  2. six-month spending bill: http://hosted.ap.org/dynamic/stories/U/US_CONGRESS_SPENDING?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-09-13-03-29-28
  3. this Associated Press story: http://hosted.ap.org/dynamic/stories/U/US_CONGRESS_SPENDING?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-09-13-03-29-28

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