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With Focus On Health Care, Congress Facing A Busy December



By Corey Boles, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- Congress will likely have to approve catch-all funding legislation before the end of the year as they wrap up much of their unfinished work into a single large bill.

Democratic lawmakers had hoped to avoid such a move given their large majorities in the House and Senate and control of the White House. With the amount of work yet to be completed, however, they appear to have no choice as the year winds down.

The ongoing attempts at a complete overhaul of the U.S. health-care system have left little time to accomplish many of the less glamorous but essential duties lawmakers must complete each year.

The Senate began a floor debate on health care on Monday, with most congressional aides expecting it to continue for the remainder of 2009.

There are 12 must-pass spending bills that allocate the budgets for the various arms of the federal government each year. These appropriations bills were supposed to have been done by the start of the new fiscal year on Oct. 1. That deadline passed, and many arms of the federal government are using last year's budgetary numbers.

In addition to the must-pass spending bills, there are a number of other initiatives which either need to be passed or which cause lawmakers to come under considerable pressure to approve them before 2009 ends.

Lawmakers must vote to increase the limit on the amount the federal government can borrow, or else the U.S. could face the unenviable prospect of defaulting on its $12 trillion debt.

Also, unless a program allocating federal subsidies to state governments to pay for road and bridge repairs is extended, these projects could ground to a halt across the country.

There are also a range of tax measures that are set to expire at the end of the year, including a popular credit aimed at spurring corporate spending on research and development.

House lawmakers have begun talking about further job creation measures in the face of the continued deterioration of the employment picture. A number of ideas are being considered, including another extension of federal jobless benefits assistance and a tax credit for employers that hire new workers.

Given the limited congressional time frame, some of these measures could be added to a large must-pass spending bill.

Five of the individual spending bills are complete. Another four are in their final stages of negotiations between House and Senate lawmakers. Three more have yet to be considered by the Senate.

Two of the unfinished pieces of legislation are of considerable importance to the financial markets.

One details spending for the Treasury and related agencies, such as the Internal Revenue Service. It could potentially include measures placing strict limitations on the Obama administration's efforts to use taxpayer money to provide stability to the financial sector.

The second sets the budget for the departments of Labor and of Health and Human Services, and includes money for job retraining, grants for college students, and funding to ensure the federal government is adequately prepared to deal with the ongoing H1N1 flu epidemic.

So a single large spending bill could include as many as seven individual appropriations bills, but more likely it will cover five or six. This could still run to hundreds of billions of dollars and more if the tax and spending measures to spur growth in the economy are added.

-By Corey Boles, Dow Jones Newswires; 202-862-6601; corey.boles@dowjones.com


  (END) Dow Jones Newswires
  11-30-091751ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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