U.S. government shutdown looms

 

Xinhua, April 7, 2011

The U.S. government is facing a shutdown as time is running out before the current stopgap budget runs out on Friday, while President Barack Obama failed to reach a compromise Wednesday with Republicans.

Obama talked with House Speaker John Boehner and Senate Majority Leader Harry Reid over the phone Wednesday morning, after meetings on Tuesday with Boehner and Reid went nowhere.

White House Press Secretary Jay Carney said Obama had "good conversation" with Reid and Boehner, and the president got an " update on negotiations." Carney said that there were indications of progress being made, but obviously no deal is done. Reid and Boehner met on Capitol Hill Tuesday afternoon after the White House meeting.

Carney also said Obama will call a meeting at the White House if he believes it's necessary.

The White House and the Republicans are at loggerheads over the budget issue. The Congress sent Obama a short term funding measure on March 17, keeping the government running until Friday, and officials have been working to prevent a government shutdown. Before that, the federal government was funded by stopgap bills since the beginning of the current fiscal year last October.

Following the Tuesday afternoon meeting between Reid and Boehner, House and Senate appropriators worked late into the night. The two parties are divided on where to cut and how deep the cut is. Democrats have offered 33 billion dollars in spending cuts for 2011, while Republicans have approved legislation trimming spending by 61 billion dollars. At the White House meeting on Tuesday, Boehner raised his offer to 40 billion dollars.

When asked about the 40 billion in cuts, Carney said Democrats have already met Republicans "more than halfway" and that the debate here is not about whether there will be cuts, but rather whether everyone is willing to do what's necessary to fund the government.

Meanwhile, the White House warned the perils of a government shutdown, which could furlough more than 800,000 federal workers and stymie the economic recovery. It would also cut off pay to members of the military and slow tax refunds, which could have heavy political implications in Washington. National parks and the Smithsonian museums would also be closed.

Key lawmakers, however, expressed optimism that the shutdown could be averted. Boehner's office said the Speaker told Obama in the phone call he was hopeful a deal could be reached. Senate Appropriations Committee Chairman Daniel Inouye, a participant in the White House meeting, also expressed optimism on Wednesday.