Having failed to pass a reauthorization bill, Congress has only a few hours to extend the current law, which expires on Saturday. On Tuesday, however, the House failed to pass a 90-day extension to the law. On Wednesday, it failed to pass a 60-day extension to the law.
Supporters of an extension are are making all kinds of dire predictions of what will happen if the law isn’t extended: states won’t get federal dollars, so they will have to cancel or postpone projects, which will put people out of work, etc. No doubt these claims are exaggerated: states typically borrow money and eventually repay it with their share of federal formula funds. A delay of a few days is not going to make much of a difference.
Curiously, the main opponents of an extension are Democrats who are holding out for the House to support the Senate bill. But, as Ken Orski describes in two articles, the Senate bill is unsustainable and Congress will have to face budget shortfalls by raising taxes, increasing deficit spending, or reducing spending.
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