DISASTER: AVERTED. CAN: KICKED — Congress agreed on a deal last night that reopens the government and raises the debt ceiling, saving the U.S. from defaulting on its debt. Phew.
After President Barack Obama signed the bill, the Office of Management and Budget issued a formal memorandum early this morning ordering federal agencies to reopen today, reports POLITICO’s Josh Gerstein. http://politi.co/H2AyVI
“All employees who were on furlough due to the absence of appropriations may now return to work. You should re-open offices in a prompt and orderly manner,” said OMB Director Sylvia Mathews Burwell in the memo.
Obama is expected to speak today at 10:35 a.m. about the need for Democrats and Republicans to work together on fiscal issues. http://reut.rs/17LKsQR
Meanwhile, the deal is seen as a big loss for Republicans, who were unable to extract any concessions from the White House after their 16-day standoff, report POLITICO’s Jake Sherman and John Bresnahan. http://politi.co/1bY75Ka
Gordon Adams, a fellow at the Stimson Center and a former national security budget official in the Clinton administration, said the prospects for a deal are grim.
“From now on, everything the Congress touches will go through a November 2014 lens,” he said, meaning each party will only make moves that will help it get more seats in the House or Senate in a year.
“Election-year politics will prevail, and that will make a Dec. 13 agreement harder to get. Everything is still on the table — defense, domestic spending, entitlements and the dreaded revenue. In my mind that makes a firm agreement in December unlikely” Adams said.
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