The U.S. Congress is expected to pass a stopgap spending measure this week rather than adopting a budget, thus passing the buck to 2013 on many important fiscal decisions.
After the November election, lawmakers will make the difficult decision on the future of the Bush tax cuts, $1 trillion in automatic spending cuts, and other expiring tax provisions. Failure to act in November and December during the lame duck session of Congress could force the economy back into a recession, based on analysis provided by the Congressional Budget Office.
HAI has learned that House and Senate negotiators are nearing a deal on the spending measure to keep the government funded for the next six months at the $1.047 trillion level established by the Budget Control Act for fiscal year 2013. A vote in both chambers could come by the end of the week.