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Budget for FY 2011 and Possible Government Shut Down

Monday, February 28, 2011

To date, an agreement to fund federal government operations remains elusive. On March 4, the current funding for the government expires.  Unless a funding mechanism known as a Continuing Resolution or "CR" is passed by both the House and Senate and signed by President Barack Obama, a government shutdown will occur. 

Last week, the U.S. House of Representatives passed a funding bill or CR that would fund the government through the end of this fiscal year.  However, the $62 billion in cuts it contained were unacceptable to the Senate Democrats and to President Obama. The measure was subsequently rejected.

Bicameral and bipartisan discussion regarding a funding package are ongoing. Currently, an agreement appears likely on a short-term, two-week fix. Specifically, the House of Representatives appears poised to pass a two week government funding bill later this week that will reduce spending by $4 billion over two weeks. The package is reported to contain funding reductions agreeable to Senate Democrats and the Obama Administration.

If ultimately agreed to, this newest CR will fund the government on a stop-gap basis. An additional agreement will be required to further fund government operations through the fiscal year and prevent a shutdown.


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