House Republicans have sent a proposal to President Obama that would end the 11 day partial government shutdown and avert a default by raising the nation’s debt ceiling.
The proposal includes changes in Obamacare as part of the end to the impasse. Also, some benefit programs would also see budget cuts.
The President has previously said he will not negotiate with Republicans on federal spending until the government is reopened and the debt ceiling raised without any conditions. The White House had seemed open to negotiation on Thursday until Senate Majority Leader Harry Reid appeared at the White House to have a meeting with the President.
“[It’s time to] put this hysterical talk of default behind us and instead start talking about finding solutions to the problems,” Senate Republican Leader Mitch McConnell told reporters.
It may be a temporary victory but the children who play lacrosse in Northern Virginia with the McLean Youth Lacrosse organization are celebrating.
A court case was filed on behalf of the players of that league to reopen Langley Fork Park in McLean, Virginia, which had been shut down by the National Park Service due to the government shutdown. The park is located on federal land but is operated by Fairfax County Park Authority who has funds to continue operating the park.
The crux of the case was that the players paid their fees for use of the park to Fairfax County, not the National Park Service. The judge ruled because the local entity runs all operations of the park, the federal government cannot stop a group that legally paid for use of the park from using facilities.
There will be another hearing on October 18th for a more permanent injunction should the government continue to be shuttered.
Legal observers say while this case does not impact any other parks on federal land that are run by state or private groups, it does set a precedent and it’s likely more cases will be filed in the next few days.
The Obama administration announced that it will allow states to use their own money to reopen some national parks that had been closed in the federal government shutdown.
Interior Secretary Sally Jewell said they will consider offers from individual states to reopen some parks but they will not relinquish control of the park itself to the states.
The governors of Utah, South Dakota, Arizona and Colorado have made requests to the administration to allow the states to fund park operations. The governors say the closure of the parks has had a unusually large impact on the communities surrounding the parks.
“The current federally mandated closure is decimating the bottom line of bed-and-breakfast business owners and operators in Torrey (Utah), outfitters at Bryce Canyon City and restaurant owners in Moab,” Utah Governor Gary Herbert wrote. He estimated the shutdown has cost Utah $100 million so far.
The National Park Service itself has stated they are losing close to $450,000 a day in revenue from the parks.
As the U.S. comes within a week of hitting the nation’s debt limit nations across the world are beginning to show their anger over the situation.
“What is chilling is that US politicians are willing to engage in a game of brinkmanship that is tantamount to detonating a nuclear device over their economy,” writes the Times of India.
UAE Businessman Khalaf Ahmad Al-Habtoor wrote in the The Arab Times: “”There is something fundamentally wrong with a system that leaves a country without direction, in stagnation, without a budget and potentially without the wherewithal to settle its debts.”
If the U.S. were to default on October 17th, it would have a crushing impact on nations that use the U.S. Dollar as their official currency. The dollar would plummet on the world markets and so third world nations like Zimbabwe who use the dollar will see their country’s overall market power and value dive.
While most world leaders are publicly stating that they believe the U.S. will find a way to raise their debt ceiling and get the nation’s economy moving again, according to multiple news reports privately they’re getting concerned.
House Republican leaders are planning to offer a temporary increase in the nation’s debt ceiling in return for President Obama entering into negotiations for what the lawmakers describe as “pressing problems.”
However, the Republican lawmakers did not offer an end to the government shutdown.
“What we want to do is offer the president today the ability to move a temporary increase in the debt ceiling,” House Speaker John Boehner told reporters after a meeting of House Republicans. He called the deal “good-faith effort on our part to move halfway to what he’s demanded in order to have these conversations begin.”
The deal would extend suspend the debt limit until the Friday before Thanksgiving and creates what economists call a “Hard X date” meaning no “extraordinary measures” can be used by the Treasury Secretary to extend his borrowing authority past that date.
Insiders say the move was aimed to calm the stock markets and the plan seems to be working at stocks were up in early trading.
The head of Veterans Affairs has said he will be holding the checks of veterans and millions of others if the budget impasse is not resolved by November 1st.
Secretary of Veterans Affairs Eric Shinseki said he withhold more than 5.18 million checks worth around $6.25 billion on November 1st. Shinseki told the House Veterans Affairs Committee he wouldn’t be able to pay beneficiaries without a budget.
He said that payments would stop for 364,000 survivors getting special benefits, 500,000 vets and spouses would stop getting pension payments and GI Bill programs will stop for another 500,000 people.
The House of Representatives passed a bill last week to fund the VA but the Senate has not considered the bill.
The Pentagon is entering into an agreement with a private foundation to ensure families of fallen troops are paid survivor benefits that were suspended because of the government shutdown, the U.S. Secretary of Defense said Wednesday.
The government will reimburse the Fisher House Foundation once the shutdown is over, Defense Secretary Chuck Hagel said in a written statement.
“I am offended, outraged, and embarrassed that the government shutdown had prevented the Department of Defense from fulfilling this most sacred responsibility in a timely manner,” Hagel said.
“In the days before the shutdown, we warned Congress and the American people that DoD would not have the legal authority to make these payments during a lapse in appropriations.”
The announcement came just after the U.S. House of Representatives voted unanimously to resume paying survivor benefits, which includes a $100,000 payment.
Source: CNN – CNN: Pentagon strikes deal with charity to pay military death benefits
Secretary of Veterans Affairs Eric Shinseki issued a dire warning Wednesday about the impact of a prolonged budget impasse, saying millions would see their benefit checks halted if the stalemate is not resolved in the coming weeks.
Shinseki said more than 5.18 million checks worth $6.25 billion could soon be held up.
“I will not be able to pay all these beneficiaries (without a budget),” Shinseki testified before the House Veterans Affairs Committee.
He said that if something is not done by Nov. 1, “I will not be sending checks out.”
Source: FOX News – FOX News: VA chief issues dire warning, says millions of veterans might not get payments
The Pentagon told FoxNews Tuesday that as long as the government is shut down they would be stopping death benefits to the families of troops killed in combat.
“Unfortunately, as a result of the shutdown, we do not have the legal authority to make death gratuity payments at this time,” Lt. Cmdr. Nate Christensen, a Defense Department spokesman, told Fox. “However, we are keeping a close eye on those survivors who have lost loved ones serving in the Department of Defense.”
House Speaker John Boehner said that the House of Representatives would be holding a vote Wednesday to restore funding for the payments.
“I think it’s disgraceful that they’re withholding these benefits,” Boehner said.
Five troops died over the weekend in Afghanistan. Four of the bodies will be returned to Dover Air Force base Wednesday. However, the families of the dead will have to pay their own travel to Dover because the Pentagon says they can’t pay those bills. The Defense Department usually pays for that travel and for transporting the family and remains to home states for private funerals.
With a partial government shutdown now in its eighth day, President Obama took questions from reporters at the White House this afternoon.
The president’s appearance comes with no end in sight to the shutdown and the deadline looming for Congress to raise the debt ceiling or risk the first-ever U.S. government default.
Earlier Tuesday, Obama spoke briefly with House Speaker John Boehner, but no apparent progress was made in their talk. Obama underscored that he’s won’t negotiate with Republicans until after the threat of government shutdown and default have been removed, according to the White House.
Source: USA Today – USA Today: Obama says he’s open to short-term budget to end impasse