Separate legislation must be passed as the federal government faces two fiscal deadlines this fall. A stopgap spending bill would prevent a partial government shutdown, and a different bill would allow the government to borrow more money. Where those measures stand:
Without passage of a temporary spending measure known as a continuing resolution, federal spending authority for agencies will expire Oct. 1, the beginning of the new fiscal year. That means nonessential programs would shut down and hundreds of thousands of federal employees would stay home. But other functions, broadly defined as being essential to the preservation of life or property, would continue, including defense, air traffic control and patrolling the border, as would so-called mandatory programs like Social Security, Medicare, Medicaid and most elements of the Affordable Care Act, the health care law also called "Obamacare."
The House last week passed a continuing resolution that would keep the government running through Dec. 15, coupled with provisions to derail implementation of the health care law and require the Treasury Department to prioritize payments in the event the government runs out of cash and borrowing authority and can't pay all of its bills. Social Security benefits and interest payments on U.S. Treasury securities would be given priority.
DEBT LIMIT INCREASE
The Treasury Department says the government will exhaust its borrowing authority in mid-October and be left with about $50 billion in cash, which will last perhaps two weeks before the government runs out of the ability to pay its bills in full and on time. The government has never defaulted on its obligations, and the possible consequences are dire: upheaval in financial markets, a spike in U.S. borrowing costs and a host of delayed payments to individual Americans and businesses.
While the Treasury Department probably would make interest payments to bondholders to prevent a catastrophic default on the debt, it wouldn't be able to make other payments on time, which would mean delays in Social Security benefits and in paychecks for federal workers and troops in the field.
President Barack Obama says he won't negotiate with Republicans over the debt limit as he did two years ago. House Republicans are instead preparing a debt limit increase that would raise the debt limit for more than a year, with a variety of GOP legislative priorities attached.
Details aren't public and are subject to changes, but GOP leaders are likely to add a one-year delay in implementation of the health care law, a mandate for government approval of the Keystone XL pipeline, and a series of generally small budget cuts, like reducing the government's contribution to federal employee retirement plans.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Glastonbury police have arrested a man who they say was driving drunk and couldn't find his way out of the police department's parking lot.
The holiday season makes for crowded malls and one woman had quite the disturbing experience as she headed to the West Farms Mall. She was riding a public bus when a man took her by surprise, exposing himself.
A man was beaten and a shot was fired during a New London home invasion, where a 3-year-old was present on Tuesday.
A Stamford bank was robbed Tuesday by an armed man wearing a neck brace, who claimed he had nothing to live for.
An appeal notice has been filed by the former chairman of the tribe that owns Foxwoods Resort Casino who was convicted of embezzling tribal funds.
Tuesday night many folks are making the trek home during the evening rush hour and state police have some simple advice, which is take your time.
As we approach the one year mark of the tragedy at Sandy Hook, the state is spending millions of dollars to upgrade security at schools statewide. An international company with a huge operation in Connecticut is stepping up to help make many of those upgrades.
The slippery road conditions at the height of the storm led to an awful crash in Milford. A driver lost control of his car on Minuteman Drive slamming right into a house.
Ridgefield police and firefighters delivered a baby in a couple's home on Tuesday morning.
It's a story that folks are still talking about, even in the last 24 hours, we've received a dozen new calls on a story News 8 brought you last week about a woman being kicked out a court room for breastfeeding.