On September 20, the U.S. House of Representatives passed H.J. Res. 59, a continuing resolution (CR) to fund the government from the start of the fiscal year on October 1 through December 15. H.J. Res. 59 would provide post-sequester FY13 funding levels for federal programs through mid-December, and would repeal funding for implementation of the Affordable Care Act (ACA). The vote was 230 to 189. Two Democrats, Jim Matheson (D-UT) and Mike McIntyre (D-NC), joined Republicans in voting for the CR. Only one Republican, Scott Rigell (R-VA), voted against H.J. Res. 59. Despite certain rejection of the attempt to defund the ACA, House leadership incorporated the ACA provision in order to gain votes of the far right Members of the Republican caucus. The House has cancelled a planned recess and will return to DC to work during the week of September 23. Senate leadership would prefer a CR that lasts for a shorter time period, and are against the ACA provision and continuing sequestration. The Senate would like to repeal sequestration in FY14 but this debate has been suspended, at least until Congress decides how to address the debt ceiling in October. The White House issued a Statement on Administration Policy (SAP) against H.J. Res. 59 on September 19. The SAP states that the resolution “advances a narrow ideological agenda that threatens our economy and the interests of the middle class.” The Administration also expresses its support for a “short-term continuing resolution to allow critical Government functions to operate without interruption.” The White House says that the President would veto H.J. Res. 59. If the chambers do not agree on a CR by October 1, the federal government would shut down until a funding agreement is reached. Although Senate and House leaders continue to state that a shutdown will not occur, the Administration has issued instructions on shutdown preparations to federal agencies.The House is planning to now move onto crafting legislation on the debt ceiling and other Republican priorities. The nation is expected to reach the debt limit in mid-October. Congress will have to raise the ceiling in order to prevent the U.S. from defaulting on its debt. The President has stated repeatedly that making good on the nation’s debt is not debatable and that he will not negotiate other policy concerns while the nation faces a threat of default from inaction. However, House Leadership insists that it will use the debt ceiling as a bargaining chip to advance other policy priorities. If short-term CR and debt ceiling agreements are reached in October, Congress will then need to address the longer term fiscal issue that has prevented FY14 appropriations from moving forward: sequestration. The Senate put forth an FY14 budget resolution that replaced sequestration. Meanwhile, the House passed an FY14 budget resolution that kept in place spending levels under sequestration, but violated it by increasing funding for defense programs and cutting funding from non-defense programs. The two chambers did not reconcile these differences in funding and neither chamber has put forth a viable solution. View H.J. Res. 59: http://1.usa.gov/18zAaJx View the SAP at: http://bit.ly/18R4TMC