Senate approves funding deal that could stave off government shutdown

The Senate agreed to temporarily fund the government and provide disaster aid, potentially heading off an escalating partisan stalemate with just days left to avoid a government shutdown.

The bill was approved 79 to 12 Monday. The measure still needs approval in the GOP-led House, which is on recess but could return for a vote.

The agreement could defuse the partisan standoff that has been heading toward a showdown as both federal disaster aid and money to fund the government were set to run out by the end of the week. The new fiscal year begins Saturday.

Republicans had been refusing to provide supplemental aid to victims of Hurricane Irene and other disasters without cuts in spending elsewhere.

Under the agreement, both the federal government and disaster aid would be funded through Nov. 18, without the spending cuts to green energy programs that Republicans had insisted on as a way to pay for the disaster aid.

Republicans had insisted that funds be offset for supplemental aid for fiscal 2011 – $1 billion beyond what had been budgeted. But since the Federal Emergency Management Agency now says its funds can last through Friday, the end of the fiscal year, no additional funds, and presumably no offsets, would be needed for this year.

Disaster funding for the new 2012 fiscal year was approved at $2.65 billion, less than half the amount Democrats wanted.

The legislation now goes to the House, which has recessed for the week. But GOP leaders are hopeful the legislation can be swiftly approved by a voice vote, without drawing all members back to Washington.

Under the agreement, the House could approve a smaller, one-week extension of government and FEMA funds, through Oct. 4. That would give the chamber the opportunity to vote on the broader package when it returns next week.

Both sides had hoped to avoid another high-stakes showdown so soon after the divisive debt ceiling debate this summer and a threatened government shutdown in spring. Those episodes left Americans deeply disappointed in Congress.

Little time remains to resolve the impasse. In addition to the House being on a weeklong break, the Senate is preparing to recess by Wednesday for the Jewish holiday of Rosh Hashana.

On Monday, the Senate also rejected an earlier compromise proposal from Democrats.