Tuesday, September 27, 2011

Senate Compromise Avoids Government Shutdown

For the third time this year, the Government avoided a major shutdown, this time due to a deadlock over disaster relief funding. What led to the standoff was the republicans demand that, if they were to allow the Democrats to spend 3.65 billion dollars on disaster relief funding for FEMA, the Democrats would have to cut an auto loan program popular with democrats to avoid adding significantly to the budget deficit. The showdown ended yesterday when FEMA (Federal Emergency Management Agency) stated that they could make ends meet without the billion dollars in proposed funding this week. They will be able to use the remaining 2.65 billion beginning Saturday and running through November 18th. As a result of this, the Democrats have not had to cut the auto loan program. Many, such as Majority Leader Harry Reed, who stated that "it will be a win for everyone," are optimistic and pleased with the way the two sides met half-way on this issue. However, a conflict over how to fund FEMA and how much funding FEMA needs is one which is sure to happen soon, and compromises such as this will not always be available; something will have to be done.

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