The Senate is expected to vote later today on a $39.7 billion dollar budget cuts bill. The vote is still not a done deal with a few possible procedural challenges under the "Byrd Rule" because of a provision concerning the Milk Income Loss Contract program and possible challenges due to welfare language. Even if those challenges fail, most are expecting an extremely close vote, with the possibility of Vice President Cheney breaking a 50-50 tie. We'll be updating and posting developments from the Senate throughout the day today. Check back often for the latest information and news.

The House also passed a $453.5 billion Defense spending bill early this morning, as well as the the FY06 defense authorization conference report. The Defense appropriations bill was passed with a bipartisan 308 - 106 vote, even though the bill includes the contentious ANWR language. The bill also includes $29 billion in Gulf Coast rebuilding aid and $3.8 billion for flu preparedness. The bill also includes a much-anticipated one-percent across-the-board cut to discretionary spending outside of Veteran's Affairs.

The Congressional Budget Office released their Long-term Budget Outlook today, in which they noted Even if taxation reached levels that were unprecedented in the United States, current spending policies could become financially unsustainable. An evergrowing burden of federal debt held by the public would have a corrosive and potentially contractionary effect on the economy.

We have been saying a lot lately that Congressional GOP budget and tax policies look out for the wealthy by providing them with tax cuts, while at the same time hurt the poor by robbing social programs of funding in the name of fiscal responsibility and deficit reduction. While this is true, there is more to the picture. As Josh Lynn and Robert Gordon have recently discussed at Think Progress and in the American Prospect, the latest GOP policies are also responsible for discouraging hard work and self-reliance - two ideals endlessly promoted in conservative rhetoric. Lynn and Gordon write