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DEFENSE COMMUNITIES 360

Omnibus Spending Package Held up over Payroll Tax Dispute

  • December 14, 2011
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Despite reaching agreement on a nine-bill omnibus, Democrat conferees reportedly have held off signing the conference agreement for the fiscal 2012 spending package to force Republicans to stay in Washington and negotiate a deal to extend a one-year reduction in payroll taxes.

Democrats pointed to some lingering differences that remain to be worked out in the massive spending package, but congressional leaders conceded that the reason for the delay is to reach a bipartisan agreement on how to fund the payroll tax cut, reported CQ Today.

The president will not sign the spending omnibus until a deal is reached over a payroll tax extension, according to CQ.

If Congress does not clear the omnibus — made up of the conference report for the military construction spending measure and eight other spending bills, including defense — before Friday, lawmakers will need to pass another short-term continuing resolution to keep the federal agencies covered by those nine bills running.

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