It's been an action packed week in Congress as the House tries to put together a $1.06 trillion spending bill to fund the operations of the federal government for the remaining seven months of the 2011 fiscal year. A divided Republican House caucus may be on their way to a huge tactical blunder that could result in a government shutdown or the failure of staying true to their pledge to massively cut federal spending.

Remember back in September of last year, when the House Republicans released the “Pledge to America,” stating their agenda should they win the House in coming election? If not, here was one line which stuck out to us: “we will roll back government spending to pre-stimulus, pre-bailout levels, saving us at least $100 billion in the first year alone....” Now that they are in control of the House, Republicans are quickly working to make good on that promise. Today, House Budget Committee Chairman Paul Ryan (R-WI) released their new spending plan for fiscal year 2011, which contains cuts of... $35 billion. Looks like it isn’t quite as easy to cut spending as the new House majority thought.

Surprising almost no one, on Tuesday Congress passed a short-term continuing resolution (CR), funding government for another few months and delaying passing a budget for the 2011 fiscal year. Over the past week or two, it became obvious that Democrats did not have enough votes to pass a year-long budget of some kind, either as a CR or as an omnibus.

It’s been a while since we’ve checked in with the FY2011 budget, what with all the hullabaloo over deficit reports and the Bush tax cuts. But with the current continuing resolution (CR) set to expire on Saturday, Dec 18, and Congress planning to adjourn at the same time, we’re coming down to the wire. Almost three months after the start of the 2011 fiscal year, Congress is finally making some progress with passing a budget, but is faced with three options: an omnibus bill combining all twelve spending bills into one big bill, a full-year CR, or a short-term CR.