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The House has passed a $1 trillion-plus catchall budget bill paying for day-to-day operations of 10 Cabinet departments and averting a government shutdown, while Senate talks on renewing a payroll tax cut and jobless benefits reached a critical phase.
The 296-121 vote to approve the spending measure represented a rare moment of bipartisanship in a polarized Capitol. The Senate's top Republican, meanwhile, raised the stakes in the showdown over the payroll tax cut, insisting he won't back a compromise extension unless the bill includes language aimed at forcing construction of a Canada-to-Texas pipeline.
As negotiations on the payroll tax bill proceeded Friday, Senate GOP Leader Mitch McConnell, R-Ky., said, "I will not be able to support the package that doesn't include the pipeline."
The GOP's pipeline demands added uncertainty to efforts by McConnell and Senate Majority Leader Harry Reid, D-Nev., to quickly reach a deal on a bill renewing payroll tax cuts and jobless benefits for the long-term unemployed.
Negotiators on the payroll tax measure worked behind closed doors Friday in hopes of sealing agreement on how to pay for the measure. Simply extending the current 2 percentage point payroll tax cut would cost $120 billion, while extending unemployment benefits for the long-term jobless and preventing a cut in Medicare payment to physicians would add tens of billions of dollars more.
A House-passed version of the payroll tax bill would give President Barack Obama 60 days to decide whether to build the proposed, 1,700-mile Keystone XL pipeline.
Obama, with the support of congressional Democrats, has announced he will delay that decision until after next year's elections, citing a need to study the impact the pipeline would have on sensitive lands in Nebraska. Obama has threatened to reject a payroll tax bill if it includes language
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