The Home Stretch – Again!

Here we go again.  We are headed into the home stretch with the Democrats trying to put together enough votes to support a passage in both the House and Senate.  If you are confused by the process – you are not alone.

The issue that is at the core of the current activities is a process called “reconciliation”.  At this point, both the House and Senate have already approved their own bills, albeit different ones.  As they were in the middle of merging the bills into one that would have required a new vote by each, the Senate lost their “Super Majority” with the Massachusetts special election.

So, what now?  The administration has crafted a two-part rescue strategy. It calls for the House to pass legislation that cleared the Senate in December, despite numerous objections, and for both houses to follow immediately with a second bill that makes changes to the first.  This second bill will be drafted under the rules of “reconciliation” so that it can pass by a simple majority.  Although the Senate has the votes they need, the house vote is more risky. 

It is worth noting that reconciliation has only been used about 20 times in the history of the US Senate.  However, each time it has been used, it has been successful.  To be considered under these rules, the changes must show a demonstrable impact on the federal budget.  So, Medicare, Medicaid, subsidies, responsibility penalties, and revenue provisions all fit.

How and when the votes will come is all a moving target.  The President earlier today announced a delay in is upcoming trip to Asia and Australia.  He had imposed a deadline for Congress to pass the bill by March 18th but it appears that he has given them a few extra days by delaying his trip.

So after another week of demonstrations, verbal attacks budget maneuvering and so forth – we again wait to see if Congressional Leaders can garner enough votes.  Stay tuned.  We are in the home stretch – again!