House Republicans Working On Plan To Avert Another Shutdown - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Washington Wire
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Washington Wire RSS Get our newsletter
Order Prints
February 5, 2018 Washington Wire
Share
Share
Post
Email

House Republicans Working On Plan To Avert Another Shutdown

Associated Press

WASHINGTON (AP) — The era of trillion-dollar budget deficits is about to make a comeback — and a brewing budget deal could mean their return comes just next year. In the meantime, House GOP leaders are grappling with the need to pass legislation to avert another government shutdown at midnight on Thursday.

Talks on a budget-busting spending pact that would give whopping increases to both the Pentagon and domestic programs continued over the weekend in hopes of an agreement this week, aides and lawmakers said.

House GOP leaders scheduled a closed-door session Monday evening to brief Republican lawmakers on a strategy to pass a stopgap funding bill that could last up to six weeks to buy time for progress in implementing any budget pact and, perhaps, enacting legislation sought by Democrats on immigration. Republicans are scrambling to pass the measure through the House since they can't count on support from Democrats to advance the legislation.

GOP defense hawks are prevailing over the party's depleted ranks of deficit hawks while Democrats leverage their influence to increase spending for domestic priorities such as combating opioid misuse.

Details are closely held and subject to change. But at issue is a two-year deal to increase crunching caps on spending set by a failed 2011 budget deal. Republicans have pushed for defense increases in the neighborhood of $80 billion a year and have offered Democrats nearly as much — $60 billion or so per year — for nondefense programs.

Add in $80 billion to $90 billion worth of hurricane aid for Texas, Florida and Puerto Rico, health care funding and money for President Donald Trump's border security plan, and the final tally could total close to $400 billion. The potential cost, over the 2018-19 budget years, would rival the deficit impact of last year's tax measure over that period.

"Republicans for years have made all of these bold promises to rein in spending," said Brian Riedl, a budget analyst at the conservative Manhattan Institute. "And they're doing the opposite."

The negotiations are bipartisan since it takes votes from Democrats to lift the budget caps and advance a follow-up omnibus spending bill, whose overall cost is likely to exceed $1.2 trillion. That means domestic programs get their due, despite the opposition of conservatives.

"Right now, everything I'm hearing grows the size of government at 13 percent," said Rep. Mark Meadows, R-N.C., citing back-and-forth budget offers. "And that's a nonstarter for conservatives."

Still, Republican deficit hawks stepped aside during last year's tax debate, and it's not looking like they'll mount a stand now. Instead, GOP defense hawks worried about lagging readiness, training and weapons procurement are carrying the day, even if it means placating Democrats with spending elsewhere.

"This budget dysfunction has a human cost, and our military is bearing the brunt of it," said Mac Thornberry, chairman of the House Armed Services Committee, citing a spate of casualties from training accidents last year.

The potential agreement would significantly exceed Trump's request for a $54 billion increase in defense spending — to $603 billion before adding war funds — above the current cap. Thornberry, R-Texas, said negotiators are "very close to a budget agreement."

The budget talks are closely held and occurring as lawmakers struggle to sort through a solution to protect younger immigrants soon to be at risk of deportation with Trump's elimination of the Deferred Action for Childhood Arrivals program, called DACA, established by President Barack Obama. House Minority Leader Nancy Pelosi, D-Calif., has linked progress on the budget with action to address DACA, but other Democrats are beginning to agitate for delinking the two, lest the opportunity for a budget pact be lost.

A trade of offers on Thursday represented progress, aides said, but an agreement didn't appear imminent. The aides, both Democrats and Republicans, spoke on condition of anonymity because the talks are secretive.

The budget caps are the hangover from the 2011 Budget Control Act, negotiated between Republicans and Obama, that prevented a default on the national debt and established a deficit-cutting supercommittee. But the failure of the supercommittee left behind unrealistic automatic spending cuts, known as sequestration, and today's stringent spending caps.

Deals in 2013 and 2015 eased the effects of sequestration by replacing cuts to domestic agency operating budgets and the Pentagon with spending cuts and fee increases elsewhere in the budget. Those offsetting measures tended to be relatively pain-free, though.

This year's looming deal is too big, however, to be fully offset with easy cuts elsewhere so Capitol Hill leaders would simply be adding much of its costs straight to the $20.6 trillion national debt.

In the wake of last year's tax bill, the Congressional Budget Office says the deficit for 2018 will hit about $700 billion — before any fresh increase. Next year's deficit is already estimated to reach $975 billion, so the brewing agreement would mean the first $1 trillion-plus deficit since Obama's first term.

House Budget Committee Chairman Steve Womack, R-Ark., told reporters at a GOP retreat that he is considering abandoning the chamber's traditional pursuit of a budget resolution this year. Under Capitol Hill's arcane rules, the annual budget resolution is a nonbinding measure that lays out priorities on spending, taxes and deficits. But it takes follow-up legislation to implement these priorities.

Womack said he might instead focus his efforts on unspecified changes to Washington's budget process. He said any House budget measure "certainly will not have a force of law and, No. 2, is not ever going to see the light of day."

Older

Little Obsessed Helps Clients Beat the Winter Blues with Fun Products

Newer

BDO USA, LLP Expands Healthcare Advisory Services Practice Through Addition of PBC Advisors Consulting Division

Advisor News

  • After the midterms: Addressing your clients’ tax concerns
  • Berkeley arts tax heads toward passage while public bank measure looks likely to fail
  • Americans’ sense of overall prosperity still ticks upward
  • Turning expanded eligibility into a better coverage plan for federal clients
  • Election 2026: Which of Berkeley's 7 ballot measures will pass?
More Advisor News

Annuity News

  • AM Best Affirms Credit Ratings of Knighthead Annuity & Life Assurance Company and Merit Life Insurance Co.
  • Jackson reports record annuity sales, increases share repurchase authorization
  • Why the market doesn’t need more carriers
  • Equitable, Corebridge steam toward merger with strong Q3 annuity sales
  • Jackson Announces New Annuity Offering for AARP Members
More Annuity News

Health/Employee Benefits News

  • Open enrollment is now for 2027 health insurance coverage in Illinois: What to know
  • Idaho insurance director details $13M school trust collapse
  • Insurance program's collapse detailed at ISBA conference
  • Boeing retirees ‘shocked’ by 400% jump in health insurance premiums
  • MEDICAID PAYMENT TRANSPARENCY RULES: STATE REPORTING REQUIREMENTS AND LIMITATIONS
More Health/Employee Benefits News

Life Insurance News

  • AM Best Affirms Credit Ratings of Central States Indemnity Co. of Omaha and Its Subsidiary
  • National Life Group Approves $23 Million Dividends for 2027
  • Milliman’s proposed $15.5 million settlement puts life insurance underwriting data in focus
  • Brighthouse Financial Announces Third Quarter 2026 Results
  • Prudential earnings dip as Japan sales suspension offsets U.S. growth
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Insurvoice Lets Independent Insurance Agency Owners Analyze Every Customer Call in ChatGPT or Claude
  • Spectrum Weather & Specialty Insurance Celebrates 15 Years and Welcomes the Next Generation
  • Royal Neighbors of America® Increases Service Capacity
  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.