Congress at an Impasse Over SGR Fix, Tax Extenders - December 20, 2011

Congress continues to struggle with the time-sensitive year-end legislation, including a patch to the sustainable growth rate (SGR) formula, agreement on the payroll tax extension and unemployment insurance. Over the weekend, the Senate approved a 2-month payroll tax cut and SGR patch to prevent the cuts to physician payments that would begin after Dec. 31. This short-term agreement was negotiated after discussions for a longer-term patch fell apart over the issue of means-testing for Medicare beneficiaries. However, House republicans have decided not to hold a vote on the 2-month bill, and instead the House will likely hold a show vote to reject it. Other show votes may include a resolution to restate the House priorities on the SGR patch and appoint a conference committee to find a long-term solution. House Speaker John Boehner (R-OH) is hoping to work with Senate Majority Leader Harry Reid (D-NV) to establish this committee to negotiate and compromise on the SGR fix and tax extenders. Congress was hoping to be on recess this week, but the failure of this legislation may call members back to Washington.

Congress did, however, finalize its work on an omnibus spending bill (H.R. 2055) that combined the nine outstanding appropriations bills for fiscal year 2012. This omnibus legislation outlines $1 trillion in federal agency spending through Sept. 30, 2012. The legislation passed the House with a vote of 296 to 121 and the Senate with a vote of 67 to 32. President Barack Obama is expected to sign the legislation into law early this week.