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Republicans voice support for $1.1 trillion spending bill

Republicans voice support for $1.1 trillion spending bill

BUDGET BATTLE: Negotiators in the U.S. Congress on Monday unveiled a $1.1 trillion spending bill that aims to prevent another government shutdown while boosting funding levels slightly for military and domestic programs - but not for "Obamacare" health reforms. Photo: Reuters

By David Lawder

WASHINGTON (Reuters) – Republicans in the House of Representatives voiced tentative support on Tuesday for a $1.1 trillion spending bill, signaling likely passage and removing one source of potential drama ahead of the 2014 elections.

The 1,582-page measure provides a $45 billion increase in military and domestic spending to ease automatic, “sequester” budget cuts and about $85 billion in Afghanistan war funding this fiscal year. It is scheduled for a House vote on Wednesday after passage of a three day stop-gap funding measure to allow time for consideration in the Senate.

Enactment will eliminate the threat of another government shutdown like the 16-day standoff in October that dropped public opinion of Congress to new depths in polls.

The bill adds funding for some Democratic priorities such as a $1 billion increase the Head Start pre-school education program for the poor, but Republicans scored a victory when negotiators denied a funding increase for implementation of “Obamacare” health insurance reforms.

Republicans also succeeded in denying funds for high-speed rail projects and for International Monetary Fund reforms. The bill also ensures that the government will continue efforts to dispose of nuclear waste at Yucca Mountain in Nevada.

“It’s not a perfect bill from either side, but I think it’s a bill that the president can live with and that Republicans and Democrats can also live with,” said Republican Representative Darrell Issa of California.

He predicted that measure would get a “large majority” of Republicans, as well as a majority of Democrats. He added that it was important to settle government funding to avoid it becoming a campaign issue in this year’s congressional elections.

Representative Tim Griffin, a conservative with Tea Party backing from Arkansas, said the bill represents “solid progress” on reducing discretionary spending. He said it should win support from many conservatives because the overall spending level is lower than at the end of the Bush administration in 2008 and below the levels called for in last year’s Republican budget plan from House Budget Committee Chairman Paul Ryan.

The second-ranking House Democrat, Representative Steny Hoyer, said he would support the spending bill despite concerns over inadequate funding.

While it’s better than the $967 billion level that was slated under the sequester cuts, the $1.012 trillion in non-war spending is “less than necessary to grow our economy,” Hoyer told reporters.

The spending bill reverses a pension benefit cut for disabled veterans that lawmakers said was mistakenly included in a previous budget deal.

DEBT LIMIT LOOMS

Passage of the spending bill would leave Congress just one major fiscal hurdle for the next few months, an increase in the federal debt limit that is expected to be needed by March or April to avoid a damaging default on U.S. debt.

U.S. House Speaker John Boehner said that Republicans have made no decisions on how to approach the debt limit, which Republicans have used as a bargaining chip to demand further deficit reduction.

Last October, disputes over Obamacare funding were also thrown into the debt limit fight, which coincided with a 16-day government shutdown. Resolution of the shutdown helped pave the way for the December budget deal and the spending bill.

“We have to deal with the debt ceiling here in the coming months and no decisions have been made about how we’re going to proceed but I’m encouraged that we are going to proceed,” Boehner said. “No one wants to default on our debt.”

(Editing by David Gregorio)

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