Republicans and Democrats seek a deal on FEMA spending

John Dimsdale Sep 21, 2011
HTML EMBED:
COPY

Republicans and Democrats seek a deal on FEMA spending

John Dimsdale Sep 21, 2011
HTML EMBED:
COPY

Steve Chiotakis: There’s an October 1st deadline for a new federal budget. And here’s a surprise: Republicans and Democrats are at an impasse over funding. This time the issue that threatens to shut down the government is disaster aid for the Federal Emergency Management Agency, FEMA.

Here’s Marketplace Washington bureau chief John Dimsdale.


John Dimsdale: FEMA’s disaster fund is running out of money. Senators have approved $7 billion to replenish the federal disaster relief fund. But Republicans say the government should be scaling back its response to storms, droughts and earthquakes. They say $3.5 billion is plenty, and it should be paid for — not borrowed, like most emergency spending in the past.

The parties are trying to reach agreement on a budget to keep the government in business for seven weeks, which means more budget brinksmanship to come. Budget analyst Stanley Collender with Qorvis Communications says before the November 2012 election, Republicans will insist on approving only short-term spending plans.

Stanley Collender: Could be the Republicans are going to just fund the government one month at a time so they continue to have leverage with these shutdown opportunities. It’s going to be a very ugly year.

Economists say any interruption of government spending could tip the economy back into recession. Collender says expect the next budget impasse right around Thanksgiving.

In Washington, I’m John Dimsdale for Marketplace.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.

Raise a glass to Marketplace!

Just $7/month gets you a limited edition KaiPA pint glass. Plus bragging rights that you support independent journalism.
Donate today to get yours!