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Mikulski: US spending bill talks may take until weekend

Wednesday, 8 Jan 2014 | 9:55 AM ET

Democrats and Republicans on Capitol Hill may need a few more days to resolve differences over a $1 trillion spending bill, a top Democratic lawmaker says, pushing passage by Congress up against a government shutdown deadline next week.


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Senate Appropriations Chairwoman Barbara Mikulski told reporters Tuesday that her hope to unveil the bill funding thousands of government projects and programs on Wednesday was "a fading dream" amid the unresolved disputes.

After meeting with the top Republicans and Democrats on the Senate and House appropriations committees, she said the "omnibus" spending measure may take until the weekend to complete.

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What will it take for lawmakers to tackle deficit?
One day the market is going to wake up and say to Congress, you have a dysfunctional government, you're addicted to debt and the fiscal path you're on is not sustainable, says Erskine Bowles, Campaign to Fix the Debt co-founder, discussing the nation's looming deficit, with former Sen. Judd Gregg, (R-NH).

That would allow little time to secure passage in the House and Senate by Jan. 15, when government funding runs out. Without a new spending bill or a stop-gap funding measure known as a continuing resolution, the government faces a potential repeat of the shutdown that hit federal agencies in October.

"Our first principle is that we get it done. We do not want a continuing resolution," Mikulski said.

The spending bill is needed to implement a two-year budget deal that was passed in December to ease some of the automatic "sequester" spending cuts by providing an additional $45 billion in fiscal 2014 spending on military and domestic programs.

(Read more: DC 2014: Cold shoulder likely for hot-button issues)

From missiles to head start

The omnibus measure combines all 12 of the normal spending bills, each covering different program areas, and the appropriations committees are negotiating over thousands of individual budget line-items—ranging from missile systems to the Head Start preschool programs for the poor.

While half of the spending bills are largely settled, negotiators are still trying to limit the number of policy provisions known as "riders" that are inserted into the bill.

Among these are Republican efforts to restrict abortions and prohibit the Environmental Protection Agency from regulating carbon emissions, according to congressional aides.

(Read more: Cantor: Budget deal 'maintain savings')

Will have to have spending cuts: Reich
Former Labor Secretary Robert Reich, says there will have to be some spending cuts, revenue increases and entitlement reforms. If you don't agree, he says, "then you shouldn't be at the bargaining table."

Mikulski, a Democrat from Maryland, said there were also unresolved issues surrounding the funding of financial regulatory efforts created by the Dodd-Frank financial reform law.

Republican efforts to deny funds to implement Obamacare reforms are also unresolved.

"I'm against Obamacare. We're trying to undo it and kill it— defund it and stop it in its tracks," said Sen. Thad Cochran, a Mississippi Republican on the Senate Appropriations Committee.

(Read more: Sick of all the Obamacare drama? Wait for 2014...)

Sen. Tom Harkin, an Iowa Democrat on the panel who chairs the subcommittee overseeing health and labor issues, said he believed negotiators were close to a solution that could provide additional funds for the health reforms, although less than the amount requested by the Obama administration.

"Stay tuned. We're working this issue in a way that will be acceptable to both sides," Harkin said.

A Senate Democratic aide said the spending bills that are largely completed include those covering defense, military construction, the Veterans Administration, commerce, justice and science agencies, the legislative branch of government, transportation and housing.

(Read more: Obama aide: Help long-term unemployed)

These measures are traditionally less controversial than some others.

That leaves the more difficult bills, including labor, health and human services, the State Department and foreign operations, energy and water, the interior and the environment.

Mikulski said she believed the bill was 90 percent completed but it would be difficult to reach consensus on the remaining 10 percent.

"An omnibus is big. It's a trillion dollars, 134 riders and it carries the priorities of the nation," she said.

—By Reuters.

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