Norton Notes Positives in Budget Deal, But Wants Senate to Extend Unemployment Insurance

WASHINGTON, DC – Following House passage of the Bipartisan Budget Act of 2013, Congresswoman Eleanor Holmes Norton (D-DC) said that "the prospect of causing another federal government shutdown finally broke the no-compromise House Republicans and forced them to agree to a much-needed budget deal." The bill reduces the likelihood of a federal government shutdown in fiscal year (FY) 2014 and FY 2015 because it sets discretionary spending levels. Appropriators, however, still need to reach agreement on individual appropriations bills before January 15, when the current continuing resolution (CR) expires. The D.C. appropriations bill is part of the larger Financial Services and General Government Appropriations bill, which is one of the more controversial and could still end up in a CR. However, Norton has protected D.C. from shutdowns through FY 2014 with a provision in the current CR that allows D.C. to spend its local funds and remain open for the full fiscal year.

"The damage done to the Republican Party after its government shutdown earlier this year finally forced their hand, and the outcome is a budget deal that makes positive steps forward for the economy and prevents another manufactured government shutdown crisis," said Norton. "It spares current federal employees who have been repeatedly hammered. However, the deal continues a virtual Republican addiction of syphoning resources from federal employees by increasing pension contributions of new federal employees. Most disappointing of all, the bill puts the long-term unemployed on the backburner by failing to extend unemployment insurance benefits."

Norton said the most important aspect of the deal is its elimination of roughly half of the sequester cuts scheduled for 2014 and about one-quarter of those planned for 2015, easing the cuts on critical domestic programs and investments. Fortunately, it also includes the extension of reimbursement rates for physicians treating Medicare patients. Furthermore, it reduces how much executives at contractors can get reimbursed by the federal government for salary to $487,000, from the current limit of $952,000, a change Norton has long sought.

Since the bill did not extend unemployment insurance benefits, 1.3 million Americans are slated to lose unemployment insurance after December 28, 2013. Norton is working to have the Senate extend the benefits. Anticipating the possibility that these benefits may not be extended, Norton yesterday introduced a bill that would boost the economy by targeting the crisis of the long-term unemployed. The bill would give employers a $5,000 tax credit against their payroll tax liability for each new net person hired who has been unemployed for 27 weeks or longer.

Published: December 13, 2013