In what looks like an attempt to out-fiscal-hawk President Obama, Sens. Jeff Sessions (R-AL) and Claire McCaskill (D-MO) have introduced an amendment that would impose strict limits on discretionary spending for the next three years. The amendment sets limits far lower than Obama's already low budget proposal, and it even includes a cap on defense discretionary spending, something the President's proposal does not do. Such caps would result in drastic cuts to many vital economic safety net programs and public protection agencies, negatively impacting the lives of millions of Americans. And while the two senators claim that the amendment will reduce the deficit, in reality, because discretionary spending is so little of the federal budget, the amendment's deficit-reducing effects will be minimal.

With the end of the fiscal year upon it, Congress, as expected, passed a continuing resolution (CR) last Wednesday to provide short-term funds to government agencies and prevent a government shutdown. As reported by Congressional Quarterly (subscription required), the CR will keep most discretionary programs operating at fiscal 2009 levels through Oct. 31. Congress intends to use the extra time to pass its remaining FY 2010 appropriations bills.

As the Senate finishes up a few important matters before the August recess, including a Cash-for-Clunkers vote, it's time to take a look at what else is going on in regular Senate business.  Unfortunately, the Senate is behind schedule, and it remains unlikely that all appropriations bills will be resolved prior to the start of the new fiscal year on Oct 1.

A report yesterday from Bureau of National Affairs (subscription required) cites several unnamed congressional sources saying the House plans to revive a statutory pay-as-you-go budget law in June. Statutory pay-go would require budgetary offsets for increases in permanent spending programs or tax cuts. Expect the measure to move through the lower house quickly, but resistance in the Senate, where lawmakers have questioned the effectiveness of the budget tool, is casting doubt on the measure's future.