Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 12,484.80 -44.99 -0.36%
S&P 500 1,320.79 +0.11 0.01%
Nasdaq 2,842.66 +3.28 0.12%
Ticker Volume Price Price Delta
STOXX 50 2,161.87 +5.35 0.25%
FTSE 100 5,351.53 +1.48 0.03%
DAX 6,339.94 +24.05 0.38%
Ticker Volume Price Price Delta
Nikkei 8,580.39 +17.01 0.20%
TOPIX 722.11 -0.14 -0.02%
Hang Seng 18,713.40 +47.01 0.25%
Gold 1,575.00 +0.97%
EUR-USD 1.2522 -0.0848%
Nasdaq 2,842.66 +0.12%
DJIA 12,484.80 -0.36%
S&P 500 1,320.79 +0.01%
FTSE 100 5,351.53 +0.03%
STOXX 50 2,161.87 +0.25%
DAX 6,339.94 +0.38%
Oil (WTI) 90.83 +0.19%
U.S. 10-year 1.741% -0.038
BAC:US 7.18 +0.49%
FB:US 31.78 -3.78%

U.S. House Presses to Complete Work on Budget-Cutting Measure

The U.S. House could complete work as soon as today on a bill to cut the federal budget by at least $61 billion as lawmakers work their way through hundreds of proposed amendments to the plan.

The chamber voted yesterday, 233-198, to kill an alternative engine program for the F-35 Joint Strike Fighter, part of a push by lawmakers to seek even deeper cuts in spending. Backers of the program included House Speaker John Boehner, an Ohio Republican.

More than half of the chamber’s 87 Republican freshman voted for the amendment that deleted $450 million set aside for the engine program that critics called a waste of money. The vote was also a victory for President Barack Obama and Pentagon officials, who have argued the program isn’t needed.

“After years of throwing good money after bad to fund the wasteful extra engine, the House has finally voted to end this unnecessary program,” said Representative Tom Rooney, the Florida Republican who co-sponsored the amendment. “Today’s vote sends a message to the American people that Congress heard their call to eliminate wasteful spending.”

Republicans split almost evenly on the engine, with 110 voting to end it and 130 voting to keep it. Among Democrats, 123 opposed funding the engine and 68 voted to continue its development.

Boehner argued the program would produce savings for the government over time. His district is near a plant that would be threatened with job losses if the program were defunded.

The engine is being developed by General Electric Co. and Rolls Royce Group Plc.

‘Open’ Debate

Michael Steel, a Boehner spokesman, declined to comment on the vote other than to refer to the speaker’s comments earlier this week when he said “let’s have a policy debate out in the open, on the House floor, and let the House work its will.”

The House is considering more than 500 amendments from lawmakers taking advantage of Boehner’s promise to allow a free debate on the budget-cutting proposal introduced by Republican leaders last week. Lawmakers probably won’t vote on most of those amendments.

The plan, which would fund the government from March 4 through Sept. 30, would kill more than 100 government programs and slash hundreds more. The Environmental Protection Agency would be cut by nearly one-third, the Peace Corps would face a 20 percent reduction and Pell college tuition grants would drop by 15 percent.

House Democrats, with the support of some Republicans, were able to blunt some of the proposed cuts to their favorite programs yesterday.

COPS Funding

Lawmakers adopted on a 228-203 vote an amendment by New York Democrat Anthony Weiner restoring funding for the COPS program, a law enforcement initiative by former President Bill Clinton that was set for termination. The chamber also adopted, 318-113, an amendment by New Jersey Democrat Bill Pascrell restoring $510 million for first responders.

Maine Democrat Michael Michaud’s proposal to provide $80 million for the Economic Development Administration was accepted 305-127.

Scores of amendments are still awaiting votes, including Ohio Republican Jim Jordan’s proposal to cut the bill by an additional $20 billion. Other amendments would bar funds to implement Obama’s health-care law, reduce funds for farm subsidies and prevent government workers from implementing the Bureau of Consumer Financial Protection, created under the financial overhaul Congress passed last year.

Freeze Proposal

The House budget plan is unlikely to survive in the Senate, where the Democrats who control the chamber yesterday endorsed Obama’s call for a five-year freeze of non-security discretionary spending to help reduce the deficit. Such a freeze would save $400 billion over 10 years.

The House vote on the engine program came just hours after Defense Secretary Robert Gates, appearing before the chamber’s Armed Services Committee, reiterated his opposition to the initiative. He called it an “unnecessary and extravagant expense, particularly during a period of fiscal contraction.”

Representative Kevin McCarthy of California, the No. 3 Republican who voted for the alternative engine, said “you look at the military today, there are some very successful items the Pentagon didn’t want.” He said the program would produce savings because having multiple companies participating would generate competition. “You would save money by having the competition between engines,” he said.

Representative Jeff Flake, an Arizona Republican, scoffed at those arguments, saying the issue was “parochial politics versus fiscal responsibility.” The vote “is an indication of whether we’re serious about saving money,” he said.

To contact the reporter on this story: Brian Faler in Washington at bfaler@bloomberg.net

To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net

Sponsored Links