Tuesday, May 22, 2018
News Roundup

Automatic cuts getting big yawn from Washington

WASHINGTON — As deadlines go, the March 1 sequester lacks punch. Nobody's taxes will go up; the U.S. Treasury won't run out of cash. Government offices won't immediately turn out the lights and lock the doors. No federal worker will be furloughed for at least 30 days.

So Washington felt little need to cancel the break for Washington's Birthday. On Friday, President Barack Obama flew to Florida for a long weekend of golf. And Congress left town for nine days, with scant hope of averting deep cuts to the Pentagon and other agencies in the short time remaining when lawmakers return.

Instead of negotiating, party leaders were busy issuing ultimatums and casting blame. Before they left, Senate Democrats unveiled a bill to replace the sequester in part with new taxes on millionaires, which Republicans oppose. And House Speaker John Boehner, R-Ohio, vowed "the sequester will be in effect until there are cuts and reforms that put us on a path to balance the budget in the next 10 years," an idea Democrats oppose.

Behind the scenes, there was real concern that the cuts eventually would disrupt critical government functions, hamper economic growth and destroy 750,000 jobs. But for now, the sequester is amorphous and slow-moving.

Even as Boehner declinined to draft legislation to avert the sequester, he was looking for ways to avoid a government shutdown at the end of next month, an event that would have more immediate consequences.

In a meeting Thursday with Senate Majority Leader Harry Reid, D-Nev., Boehner suggested quick action to fund the government through the rest of this year, according to people in both parties. The current funding bill runs out March 27.

In the meantime, lawmakers began bracing for the sequester to creep ever so slowly into people's lives. Last week, a host of Cabinet secretaries wrote letters and trooped to Capitol Hill hearings to warn that the impact will indeed be calamitous.

Furloughed inspectors will force meat and poultry plants to shut down nationwide. Wait times will soar at airport security and border crossings. Rent checks will be cut off to 10,000 old and disabled people and single mothers. And the FBI warned it will be less able to "penetrate and disrupt terrorist plans … prior to an attack."

None of it, however, would happen right away. At a hearing Thursday, Senate Appropriations Committee Chairman Barbara Mikulski, D-Md., begged a panel of top officials to give her more urgency and drama.

"Here we are, March 1. It is now midnight. The clock has moved," Mikulski intoned. "Can't you paint for me the picture of how sequester is triggered? Do all the lights go out in federal buildings?"

Well, no, said Daniel Werfel, controller at the White House budget office.

But there will be "intense bargaining with unions" about furloughs. Word will go out to federal contractors about contract modifications and terminations. And "governors will be digesting information about how their financial footprint will be impacted. The list goes on and on," he said.

Republicans were, for the most part, unmoved, noting that they see no reason to acquiesce to Democratic demands to replace spending cuts in part with new tax revenue.

After all, "the president last month got an enormous amount of revenue with no spending cuts. Now he's going to get cuts with no revenue," said Rep. Tom Cole, R-Okla., a senior Republican on the House Budget Committee, referring to the Jan. 1 "fiscal cliff" deal to raise taxes on income exceeding $450,000.

The sequester would cut spending by $1.2 trillion over the next decade. It was adopted during the 2011 debt-limit showdown and designed to be so painful that neither party would ever let it take effect. During the next seven months, it is slated to slice $85 billion out of agency budgets — including $46 billion from the Pentagon — with the cuts applied equally to every program and account, no matter how worthy.

Most social-safety net programs are exempt.

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