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Wednesday, June 1, 2011

Another Shutdown Averted by Passing Fiscal 2011 Budget

The intense negotiation went into wire and eventually averted the shutdown hours before the deadline: 11:59PM April 9, 2011. The White House, House and Senate agreed to cut $38 billion during the rest of the Fiscal 2011.

This is how $38 billion is targeted from the remaining six months of the Fiscal 2011:

* Agriculture: $3 billion ($23 billion in Fiscal 2010 to $20 billion Fiscal 2011)--Money for food inspection cut slightly; money for food program for poor women and children cut 7%, or by $504 million.

* Commerce, Justice, Science: $11 billion ($64 billion in Fiscal 2010 to $53 billion in Fiscal 2011)

* Energy and Water: $ 2 billion ($34 billion in Fiscal 2010 to $32 billion in Fiscal 2011)--spending on energy efficiency cut by $438 million

* Financial Services: $2 billion ($24 billion in Fiscal 2010 to $22 billion in Fiscal 2011)

* Homeland Security: $1 billion ($43 billion to $42 billion)--$786 million cut in grants to local responders.

* Interior: $2 billion ($32 billion to $30 billion)

* Labor, Education, Human Services: $5 billion ($163 to $158 billion)--$600 million was cut from Community Health Care Center program, $390 million cut from low-income energy grant

* Military Construction, Veteran Affairs: $4 billion ($77 billion in Fiscal 2010 to $73 billion in Fiscal 2011)

* Foreign Operation: $1 billion ($49 billion to $48 billion)

* Transpotation, Housing: $12 billion ($68 billion in Fiscal 2010 to $56 billion in Fiscal 2011)--Community Development grants cut over 20%, or by a billion; also cut high-speed rail money

Congress approved the measure on April 14, and sent it to President Barack Obama for his signature. House voted 260 to 167, with 59 Republicans dissenting over the degree of cuts in spending, and Senate voted 81 to 19. As part of approving the budget measure, House had to take up two separate measures--one on cutting funding to Planned Parenthood and another one overturning the Health Care Reform act passed last year--and voted for them by 241-185 and 240-185, respectively. However, both of them had failed in Senate floor.

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