October 16th, 2013
11:20 AM ET
10 months ago

Shutdown showdown Day 16: What you need to know

(CNN) - There’s a deal! After a whirlwind couple of days of political jockeying, Senate leaders announced the final terms of a bipartisan compromise to reopen the government and raise the debt limit.

Here’s what you need to know:

Up to Speed

Wednesday afternoon. Senators are reading the proposal, and House Republicans and Democrats met separately to review it and consider next steps.

Both the Senate and the House are now expected to take it up on Wednesday evening, but it’s anyone’s guess when they might finish their work.

Live blog: Shutdown Day 16

President Barack Obama praised the Senate compromise and urged quick action in Congress with the government’s authority to raise money set to expire on Thursday.

The stock market responded positively, jumping by 200 points around noon before settling back a bit as Washington appeared to be pulling back from the fiscal brink. But businesses are blaming the Washington tumult for holding back hiring, according to a new survey.

The deal

The Senate deal would:
Reopen the government, funding it until January 15.

It also would raise the debt limit until February 7 to avert a possible default on U.S. debt obligations for the first time.

Also, the White House supports a provision in the deal that strengthens verification measures for people getting subsidies under Obamacare.

In addition, the Senate agreement would set up budget negotiations between the House and Senate for a long-term spending plan.

Cruz won't block vote in Senate - even though he opposes deal

What this means

But how would a Senate plan, which was quickly vocally rejected by House Republicans, pass the House? CNN’s John King explains: “If you get a scenario where the Senate sends over a plan and Speaker Boehner brings it to the floor and lets the full majority, 435 members of the House rule, most of the House Republicans can vote no.”

Rep. Charlie Dent, R-Pennsylvania, said as much on Tuesday night on CNN.

“I believe that John Boehner will likely be in a position where he will have to essentially pass the bill that is negotiated between senators McConnell and Reid. And I believe the house would first pass it then send it to the senate,” Dent said.

Debt deadline decoded

Many Americans, unfortunately, live paycheck to paycheck. Now it looks like the United States of America is doing the same.

On Thursday, the nation’s treasurer runs out of his ability to confidently pay all our bills. An Obama administration official told CNN’s Brianna Keilar that the markets will remain calm as long as a resolution is nearing completion. But if there is still chaos...

That statement gives debt deniers more reason to doubt. Rep. Steve King, R-Iowa, who said on CNN’s ‘New Day’ that it was a day simply “picked on a calendar.”

CNN’s Richard Quest responded to the debt deniers. “Why would you want to risk it?” Quest asked.

Quest also reminded people why the debt ceiling matters: “The United States is at the core of the global economy and the bond market is at the core of the core. U.S. Treasuries, U.S. debt is in every portfolio, pension fund, used by the banks to trade between each other. You are literally talking about the glue that is holding the financial world together.”

Meanwhile, ratings agency Fitch said that it may downgrade the country's AAA credit rating to AA+ over the political brinksmanship.

America’s Debt

On tap

10:00 a.m.: House is in session LIVE House in session

12:00 p.m.: Senate is in session

2:00 p.m.: Defense Secretary Leon Panetta talks about the debt limit

2:25 p.m.: President Obama meets with Treasury Secretary Jack Lew

By the Numbers

Moody’s economist Mark Zandi said the government shutdown has cost $20 billion so far. Here’s what that could have paid for:

2: weeks of unemployment insurance:

94: Percent of state national park requests

8: years of capital funding for airports

2: years of school lunch program

33: Percent of the country’s annual expenditure on food stamps

50: Percent of annual Pell Grants

392,000: Number of household salaries at the $51,017 median household income

Obamacare

Yep, it’s still the law. But for the first time the President addressed the website glitches. In an interview with KCCI, Obama said it “has had way more glitches than I think are acceptable and we've got people working around the clock to do that.”

Local impact

The state of North Carolina has suspended two benefits program for low-income people. The state is not accepting any new applications for a family cash assistance program called “Work First,” impacting about 20,000 North Carolinians, most of them children. A separate monetary assistance and health benefits program for refugees has also been suspended.


Filed under: Congress • Debt • Government Shutdown
soundoff (45 Responses)
  1. What's in that tea anyway?

    There is nothing to no except this is the "Tea Party Revolt" we've been seeing on bumper stickers. I have no illusions, the idiots are trying to destroy this country because they couldn't beat the President at the ballot box, they've decided to take the kamikazi approach and make every american pay for his re-election. Its just that simple!

    October 16, 2013 09:49 am at 9:49 am |
  2. Lynda/Minnesota

    "But by the end of the day, a plan from Speaker John Boehner in the House to avert the debt limit and reopen the government disintegrated in his hands, leaving the Senate to scramble to finalize its plan and try to dodge the deadline and looming economic catastrophe."

    Ouch. Looks as if Mr. Boehner is getting a taste of what it is like to be told "HELL NO" day after day, month after month, year after year.

    And by his own Republican caucus no less.

    Oh, but how the irony fits.

    October 16, 2013 10:16 am at 10:16 am |
  3. tom l

    Data Driven:
    In polling, most people admit that they don't even understand Obamacare. Indeed – I see it every day on this website.

    I totally agree. People don't understand this. People need more education on the process. You are advocating for exactly what the repubs are, you just don't realize it. Buying insurance is time consuming, needs a great deal of education about all of the bells and whistles and how it functions. As you have so eloquently and clearly stated, people just don't understand it. So why would you force people to buy something they don't really understand. A delay, NOT defunding, is what is prudent here. And you just said it in your statement which I totally agree with.

    October 16, 2013 10:19 am at 10:19 am |
  4. Sniffit

    Learning anything yet about the pitfalls of deliberately radicalizing your base as a strategy for generating political cover for blanket obstruction, GOPers? My guess is you're not, but we can all hope.

    October 16, 2013 10:28 am at 10:28 am |
  5. Sniffit

    "cost $20 billion so far"

    Guess who the GOP/Teartolls want to pay for it by cutting and sacrificing necessary services. Guess.

    October 16, 2013 10:35 am at 10:35 am |
  6. Dominican mama 4 Obama

    Lynda Minnesota
    Ouch. Looks as if Mr. Boehner is getting a taste of what it is like to be told "HELL NO" day after day, month after month, year after year.

    And by his own Republican caucus no less.

    Oh, but how the irony fits
    -------------------------------------------------
    You're enjoying this. I can tell. And for all the unnecessary angst Orange Glo and his lack of leadership skills has put us through I can't say I blame you. Lol!

    October 16, 2013 10:36 am at 10:36 am |
  7. Sniffit

    "People need more education on the process. You are advocating for exactly what the repubs are, you just don't realize it."

    No. The GOP/Teatrolls have demonstrably done everything in their power to misinform and terrify the public and discourage people from signing up via the exchanges. Two words: "death panels." Enough is enough. If the GOP/Teatrolls truly want people to be informed and understand the ACA, then they need but do one thing: SHUT UP.

    October 16, 2013 10:37 am at 10:37 am |
  8. Tampa Tim

    Tom l – I know you are sensitive, and i don't want to upset you, . . . but there is a six month period to sign up, because it is important to get the facts before you sign up. Makes me wonder why the red state governors are so hell bent on denying information to their citizens.

    October 16, 2013 10:38 am at 10:38 am |
  9. Sniffit

    "So why would you force people to buy something they don't really understand."

    Because they're not buying "Obamacare." They are buying a regular private health insurance plan just like any other prior to the ACA. The only difference is that the plans must now meet certain requirements and, once all the glitches are worked out on the federal site, people will be able to browse the plans to see and compare EXACTLY what they're buying...which is better than now. Many people in states that set up their own exchanges are already doing just that. This ridiculous fallacy that "Obamacare" is somehow a discrete product in and of itself needs to end.

    October 16, 2013 10:39 am at 10:39 am |
  10. Dominican mama 4 Obama

    The Senate’s plan would temporarily fund the government until January and lift the debt ceiling until February. It would also create a committee to talk about the larger issues facing the country, including spending, taxes, and entitlement programs. Finally, it would create stricter income verifications for people to obtain health care subsidies under Obamacare
    -------------------------------------------------
    The only thing that gives me pause is the part about funding the government only through January. Then what? This again?
    I like the fact that the debt ceiling issue is resolved beyond the ridiculous 6 weeks that Boehner had proposed under the auspices of the cray-crays.
    Reviewing income eligibility for those receiving subsidies towards Obamacare is REASONABLE.

    October 16, 2013 10:48 am at 10:48 am |
  11. Dominican mama 4 Obama

    Sniffit

    Learning anything yet about the pitfalls of deliberately radicalizing your base as a strategy for generating political cover for blanket obstruction, GOPers?
    -------------------------------------------------
    Not yet.
    It will only truly sink in when some of them get voted out of office.
    That's the only consequence that these folks understand, other than that they can spin their way in and out of reality until the next election cycle.

    October 16, 2013 11:01 am at 11:01 am |
  12. tom l

    @Sniffit
    You know what, you're right. Dems know everything. They should just tell us silly libertarians, conservatives and repubs what to do. They know how everything works and do everything perfect. We, as the libertarians, conservatives and repubs should just sit back, have no opinion, no say and just do what we're told since clearly the democrats and liberals know it all.

    What's ironic with your "majority rules" is that if we functiioned like that in our history then minorities would never have the equality that they have today. If they just had to "shut up" and not be heard, where would we be?

    October 16, 2013 11:09 am at 11:09 am |
  13. Data Driven

    @Tom L.,

    "You are advocating for exactly what the repubs are, you just don't realize it."

    Republicans are advocating universal, mandated health insurance provided by the government? Because that's what I'm advocating, guy.

    October 16, 2013 11:10 am at 11:10 am |
  14. tom l

    @Tampa Tim
    And you should just stop. You are the typical ill informed person who thinks the govt is good. You're just a non-thinking lackey. No more. No less.

    October 16, 2013 11:10 am at 11:10 am |
  15. rs

    What we need to know on this penultimate day, or perhaps what we need to realize and remember is this: The Republican Party- and especially their corporate funded TEA Party, has been working hardfor the last 5 years to undermine the federal government and the President. They are engaged in nothing less than an illegal coup d'tat. Today we learn whether they intend to back away from they're hyper-radical, anti-American positions and work for America, or if they intend to take this nation down with them.

    October 16, 2013 11:12 am at 11:12 am |
  16. The Real Tom Paine

    We have become a society of instant gratification, one that prides itself on emotional responses rather than carefully considering all sources of information before proceeding. The posts on here are perfect examples of that, and I am certainly guilty of having caved towards whatever viewpoint I might be predisposed towards, rather than thinking thing through. Its a pity that such a basic necessity as health insurance has become a subject where people cleave on way or the other. Is there a perfect solution? No. Can we trust the insureres to do things that are in our best interest? Not at all. Should we rely on teh government to run every aspect of our lives with this? Absolutely not. Will we be better off by comforting ourselves with ideology, rather than solving the problem? Definitely not. People need to climb off of the barricades, and start having a real conversation, one that is not filled with assigning blame or accusing people of engaging in anti-social behavior. A society that works is one where it is a collagborative procvess, where ALL contribute. We don't have the luxury of opting out because we don't like who is in charge, or that inconvenient facts like cost are being ignored. Its all, or nothing: do we really want nothing?

    October 16, 2013 11:14 am at 11:14 am |
  17. Gunderson

    Old Gunderson know all he need to know. Country Broke, Peasants running asylum buy more Snake Oil, Get on food stamps, wait for end. Now have 17 Trillion Dollar Federal Debt, Obama Care killing jobs people stick head in sand, no want hear Bad News, elect more liberal's that promise the moon, what else old Gunderson need know?

    October 16, 2013 11:16 am at 11:16 am |
  18. tom l

    Sniffit said:

    I've never said it was their only reason. It's certainly one of them though. I have no problem saying that. It's high on their list too.

    But Sniffit said earlier:

    The House Republicans just don't get it....they are willing to shut down everything for what?"
    For what? There's a black Dem in the WH. Period.
    Next question.

    Seems pretty definitive to me. You even put a "period" at the end of that and dismissed it with "next question".

    Funny how you seemed to avoid this one, champ.

    October 16, 2013 11:19 am at 11:19 am |
  19. Emilia Diaz

    I'm a federal employee and a disabled veteran and this whole ordeal is not sitting well with me. I have a child to feed and bills to pay. I'm currently still working without any sign of getting a check no time soon. How long do they think people can live this way.

    October 16, 2013 11:21 am at 11:21 am |
  20. tom l

    @Data
    Republicans are advocating universal, mandated health insurance provided by the government? Because that's what I'm advocating, guy.

    Nope, they are advocating for a delay. And since you have said that people don't understand it, they need time. A delay, if you will. You might want mandated health insurance by govt, but what you have now is the ACA and you are in full support of it. Since reality is that this is the law of the land and you keep saying that then you are an advocate for it. I can't believe the president has so divided the two of us now that you have resorted to calling me "guy". That's sad.

    October 16, 2013 11:22 am at 11:22 am |
  21. Data Driven

    @Tom L,

    "What's ironic with your "majority rules" is that if we functiioned like that in our history then minorities would never have the equality that they have today. If they just had to "shut up" and not be heard, where would we be?"

    I know you hate this term, but: false equivalence. Conservatives lost the last election. They are in the minority in the Federal government. Therefore, they should get very little of what they want. Let them negotiate with the majority at budget conference committees and not hold the country hostage.

    Unless you're advocating that liberal representatives statehouses and liberal citizens just ignore and thwart the will and laws of the conservative majority.

    October 16, 2013 11:24 am at 11:24 am |
  22. rs

    Gunderson

    Old Gunderson know all he need to know. Country Broke, Peasants running asylum buy more Snake Oil, Get on food stamps, wait for end. Now have 17 Trillion Dollar Federal Debt, Obama Care killing jobs people stick head in sand, no want hear Bad News, elect more liberal's that promise the moon, what else old Gunderson need know?
    _______________________
    OG with bad fake accent should go back to old country.

    October 16, 2013 11:29 am at 11:29 am |
  23. Tigas

    "The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a Sign that the US Government cannot pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. ...Increasing America’s debt weakens us domestically and internationally. Leadership means that 'the buck stops here'. Instead, Washington is shifting the burden of bad choices today onto the backs of our children and Grandchildren. America has a debt problem and a failure of leadership. Americans deserve better."
    BHO

    October 16, 2013 11:31 am at 11:31 am |
  24. A True Conservative

    I'm geting a kick out the comments about the "party of no". It appears that both parties are the party of no. Obama and company appear to want to rule by dictate – the Republicans want to at least sit down and negotiate. Funny, I thought that was how a Constitutional Republic worked vs a pure democracy....too bad all of the legal scholars in the Congress and the Administration seem to have skipped that class...

    October 16, 2013 11:32 am at 11:32 am |
  25. wendel

    the only people who don't seem to understand the Affordable care act are the tea bagging trolls. And they never will understand. How can you explain it to a bunch of red neck who still wave the confederate flag and think palin is a genius? They are holding this country hostage because they lost and election don't like the president and now are picking up their marbles and going home. They have decided not to play anymore. These idiots have no clue.

    October 16, 2013 11:33 am at 11:33 am |
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