U.S.
government shuts down as Congress can't agree on spending bill
By
Tom Cohen and Holly Yan, CNN
updated 1:17 AM EDT, Tue October 1,
2013
Washington (CNN) -- For the first time in 17
years, the U.S. government shut down at 12:01 a.m. ET Tuesday after the House
and the Senate couldn't agree on a spending bill to fund the government.
The
two sides bickered and blamed each other for more than a week over Obamacare,
the president's signature health care law. House Republicans insisted the
spending bill include anti-Obamacare amendments. Senate Democrats were just as
insistent that it didn't.
About
an hour after the shutdown started, House members voted to reaffirm the
Obamacare amendments they previously passed, while also requesting a conference
with the Senate to work out their differences.
But
Senate Majority Leader Harry Reid already said he would not agree to such a
meeting until the House presents a clean spending bill.
"We
will not go to conference with a gun to our head," Reid said late Monday
night.
"Tomorrow
will be a bad day for government."
Hundreds of thousands furloughed
Federal
employees who are considered essential will continue working. But those deemed
non-essential -- close to 800,000 -- will be furloughed, unsure when they'll be
able to work or get paid again.
Most
furloughed federal workers are supposed to be out of their offices within four
hours of the start of business Tuesday.
President
Barack Obama issued a statement early Tuesday to military members and
Department of Defense employees about the outcome of the shutdown.
"Those
of you in uniform will remain on your normal duty status," the president
said. "Congress has passed, and I am signing into law, legislation to make
sure you get your paychecks on time. And we'll continue working to address any
impact this shutdown has on you and your families."
"To
all our DOD civilians—I know the days ahead could mean more uncertainty,
including possible furloughs," the president added. "And I know this
comes on top of the furloughs that many of you already endured this summer. You
and your families deserve better than the dysfunction we're seeing in Congress.
... That's why I'll keep working to get Congress to reopen our government and
get you back to work as soon as possible."
The final hours
The
shutdown appeared inevitable Monday night as House Republicans acknowledged
they couldn't overcome Senate objections to a proposal that includes provisions
aimed at derailing Obamacare.
Democratic
Rep. Chris Van Hollen said the reason there wasn't a budget deal is because
Republicans refused to negotiate months ago.
"They
want to go to conference with 45 minutes left," Van Hollen said late
Monday night. "That is a recipe for a government shutdown."
Legislative ping pong
For
the second time Monday, the Senate rejected a House Republican effort to derail
Obamacare by linking it to a proposal that would avert the shutdown.
The
Senate voted to table House amendments that would have delayed the individual
mandate in the health care law and eliminated health insurance premium
subsidies for members of Congress, their staffs and the president.
In
the latest volley of legislative ping pong over a short-term spending plan
needed to avoid the shutdown, House Republicans were expected to meet to
discuss their next steps.
Earlier,
Senate Democrats had rejected a House proposal by a 54-46 vote, strictly along
party lines.
Obama
made a previously unscheduled statement to reporters on Monday afternoon,
blasting the attempts by House Republicans to undermine Obamacare that he said
threaten to harm the economy with a shutdown.
"You
don't get to extract a ransom for doing your job, for doing what you're
supposed to be doing anyway, where just because there's a law there that you
don't like," the president said.
Obama
later called Boehner and other party leaders in the House and Senate, the White
House said, but a Boehner spokesman indicated there was no breakthrough.
Moderate GOP revolt
GOP
sources told CNN that moderate House Republicans were trying to galvanize what
would amount to a rebellion against Boehner and their tea party colleagues by
defeating the latest proposed spending plan with attached anti-Obamacare
provisions.
However,
a procedural vote on the measure passed with only six Republicans voting
"no."
Without
congressional approval of new spending legislation, parts of the federal
government will begin shutting down when the current fiscal year ends at
midnight, forcing agencies to furlough thousands of workers and curtail some
services until there is a resolution.
"I
feel sad about it. We expect more from our Congress," said Vick Temple, a
worker for the Federal Aviation Administration who said he faced being
furloughed in a shutdown.
Polls
show public opposition to a shutdown, and stocks ended lower Monday on Wall
Street due to concerns over the economic impact.
The blame game
Republican
Rep. Renee Ellmers of North Carolina said on CNN's "New Day" that her
party continues to be deeply concerned about Tuesday's scheduled opening of
Obamacare health insurance exchanges and "keeping the checkbook out of
Barack Obama's hands and the damage can be done there."
Rep.
Debbie Wasserman Shultz, D-Florida, appearing alongside Ellmers, characterized
the Republican strategy of tying overall government operations to at least a
delay in health care changes as "irrational."
"It
jeopardizes the economy and it makes no sense," she said.
Weeks of hot potato
Last
week, the Senate voted down a House GOP plan to eliminate funding for Obamacare
in a short-term spending plan to keep the government running in the new fiscal
year that begins Tuesday.
Democrats
have pressured Boehner to give up a losing fight over Obamacare forced by tea
party conservatives and instead hold a vote on a "clean" spending
plan that includes no provisions seeking to undermine the health care reforms.
Wasserman
Schultz predicted that such a measure would pass easily with support from all
Democrats and more moderate Republicans.
Some
Republicans expressed frustration Monday with the tactics of their
congressional colleagues. Veteran GOP Sen. John McCain of Arizona noted that
any attempt to repeal Obamacare would fail because of Obama's veto, which would
require a two-thirds majority in the Senate to overcome.
"There's
not 67 votes in the United States Senate, therefore, ergo, we're not going to
repeal Obamacare," McCain said. "OK? That's it. We may do this for a
day. We may do it for a week. We may do it for a month. It's going to end up
the same way. "
GOP
Rep. Charlie Dent of Pennsylvania told CNN Chief Congressional Correspondent
Dana Bash that whichever party was to blame, a shutdown will make everyone look
bad.
Obamacare still focus
Obama
and Democrats reject what they call Republican efforts to use the threat of a
government shutdown to force negotiations on the president's signature health
care reforms.
Noting
that the 2010 Affordable Care Act has been upheld by the Supreme Court, they
say it is settled law that voters endorsed last year by re-electing Obama over
GOP candidate Mitt Romney, who campaigned on repealing it.
A
new CNN/ORC poll shows that Americans are not happy about the prospect of a
shutdown, which is happening because Congress has been unable to pass a budget
for the new fiscal year that begins Tuesday.
According
to the poll, 68% of Americans think shutting down the government for even a few
days is a bad idea, while 27% think it's a good idea.
And
it appears most Americans would blame congressional Republicans for a shutdown:
Sixty-nine percent said they agreed with the statement that the party's elected
officials were acting like "spoiled children."
Democrats,
however, weren't far behind: Fifty-eight percent of respondents said they too
were acting like spoiled kids.
A
poll later showed public support for Congress at record low levels.
Stock
traders also seemed solidly against a shutdown. The Dow Jones Industrial
Average fell by more than 120 points, or nearly 1 percent, and the other two
major indexes also closed lower.
Among
major economic issues that could result from a shutdown: delays in processing
FHA housing loan applications -- a potential drag on the housing recovery --
and the potential loss of government spending that's helping prop up the
economy, said Christine Romans, host of CNN's "Your Money."
"You've
got an economy right now that's very tied to government spending and government
contracts, so that could have a ripple effect all across Main Street," she
said on CNN's "New Day."
If
the government does shut down, it would be the first time it has happened in
more than 17 years. That previous shutdown, sparked by a budget battle between
Democratic President Bill Clinton and a Republican Congress, lasted for 21
days.
While
the military will remain on duty, as will many essential public safety, health
and welfare operations, many government offices will close. About a quarter of
the federal government's 3.3 million employees -- those frequently referred to
as "nonessential" -- will be told to stay home from work until the
shutdown is over.
Attorney
General Eric Holder and Defense Secretary Chuck Hagel said essential crime
prevention and military services would continue, but some workers would be
furloughed. Holder said he would cut his pay by the same amount as the most
severely affected Justice Department employees because "we are all in this
together."
