On Monday evening, Senate leaders Harry Reid and Mitch McConnell were very close to a deal to reopen government and extend the debt ceiling, but House Speaker John Boehner wanted to get there first. McConnell decided to give him the chance to do so, and Boehner spent the whole day trying to get a deal—and ended up failing miserably. Deja vu all over again, and on Tuesday evening, Reid and McConnell were very close to a deal.
Here's what the deal looks like as of Wednesday morning: a continuing resolution to fund the government until January 15, the debt ceiling raised until February 7, and a budget conference to resolve the automatic spending cuts under sequestration. A final sticking point, Huffington Post reports, is over the sequester and "how much flexibility—if any—agencies should have when dealing with the sequestration spending cuts."
The Senate deal keeps sequestration funding in effect, but also creates a budget negotiation framework that will offer recommendations to deal with it and other matters by Dec. 13. The question now is what to do about sequestration up until that date and what to do if those negotiations fail. [...]
The White House is objecting to flexibility under sequestration. The two options on the table are Manchin plan which puts choices all on the admin, the other is Collins which allows [congressional appropriators] to move things around, and I don’t think they like that either. That’s the final point being ironed out.
The White House apparently believes that too much flexibility would allow agencies to somewhat lessen the pain of sequester, and reduce political pressure to end it. In addition, the Senate plan will also include
income verification for Obamacare subsidies, but one that won't postpone enrollment in Obamacare or the availability of subsidies.
The other element of this that is critical is that Boehner has agreed to take up the Senate bill first, and allow Democratic votes to pass it. That has the advantage of removing one of the opportunities for a Ted Cruz or Mike Lee in the Senate with the power to gum up the works with a filibuster. The House has already opened, but a vote is not yet scheduled. The Senate will convene at noon, when the final deal is expected to be announced.
8:29 AM PT: New reports suggest Boehner doesn't want us to think he's folding too easily.
More as it develops....