Dealbreaker: Senate Rejects House Budget Due to Lack of Car Subsidies
What’s keeping Congress from passing an extension to the federal budget? Democratic protection of automobile subsidies.

Top Senate Democrat Harry Reid vows to keep an clean-car subsidy in the budget, come hell or high water. Photo: J. Scott Applewhite / AP
After midnight last night, the House finally managed to narrowly pass a budget extension bill, but Senate leaders have already rejected it out of hand, since it includes about half the disaster relief they’d like and cuts $1.5 billion from a clean-fuel technology manufacturing program for the auto industry.
The disagreement is strong enough that it threatens to keep Congress in session longer than intended — likely through the weekend, and possibly even into next week’s scheduled recess.
That gives them a week, if necessary, to avert a government shutdown — the potential consequence of inaction on a bill to extend federal government spending past September 30.
Clean vehicles are great, but if Democrats really want to meet important environmental goals, just imagine how much good they could do by spending that $1.5 billion to implement better bus systems or provide emergency assistance to transit agencies struggling to keep up with higher ridership.
In addition to highlighting how Senate Democrats highly prize car subsidies, this situation also puts in perspective the brewing fight over the FY2012 budget. If Congress can’t even pass a simple extension to keep government operations for a few months, with just a few billion dollars’ difference, how will they ever agree to bridge the enormous gap between their visions for FY2012?










