Democrats have been pushing for leaders of the House and Senate budget committees to suspend or substantively change prior plans for the budget reconciliation process. While it is not clear whether this will happen, it is certain that the budget reconciliation deadline will at least be delayed, although for an indeterminate amount of time. Under the budget resolution passed in April, the reconciliation process would have resulted in:

Taking $35 billion from expected mandatory spending over five years;

Enacting $70 billion in tax cuts over five years; and

Raising the federal government's debt ceiling by $781 billion.

The deadlines which had been set for the actions mentioned above were September 16, September 23, and September 30, respectively. Now it appears those deadlines will be extended for at least a few weeks, although the House and Senate Budget Committee Chairman Jim Nussle (R-IA) and Judd Gregg (R-NH) seem eager to not postpone reconciliation indefinitely. Nussle stated, "We should not be distracted by this or anything else to continue our efforts to reform government. That's what reconciliation is about, it's about reforming government." Gregg chimed in with similar sentiments, calling the idea of indefinite suspension of reconciliation "blatant politics," and noting, "The view is we're still going to execute this reconciliation package in a timely manner." Democrats in the Senate and House are continuing to argue that the ultimate goals of reconciliation process would conflict with the needs of the victims of Hurricane Katrina, and should thus be suspended or drastically reconsidered.

Congressional tax committees have set to work and are looking into how tax policy can be used to help victims of the recent disaster, both immediately and in the long run. Chairman of the Senate Finance Committee Charles Grassley (R-IA) told reporters in a morning news conference that his committee would be looking into relief efforts associated with past natural disasters in order to determine which policies have been effective. Then, they will look into applying similar policies to help those affected by Katrina. Meanwhile, in the House the Chairman of the Ways and Means Committee, Bill Thomas (R-CA), is apparently exploring a three-phase approach addressing the initial humanitarian concerns, followed by infrastructure concerns, and finally long-term reconstruction. The first measure, which could move as early as September 8, deals with getting money to individuals through TANF (Temporary Assistance for Needy Families). The measure would remove a lot of red tape and provide immediate assistance for a number of families. Also, it is pretty clear that any sort of work on Social Security legislation is off the table now that Congressional leaders have their hands full dealing with the disaster. Sen. Olympia Snowe (R-ME) told BNA News Services that "Major issues are overtaking a number of issues like Social Security. It's hard to foresee a legislative agenda addressing the long-term issues associated with Social Security this fall." Grassley made similar comments, telling reporters that his top priority this fall will be disaster-related measures, the Roberts nomination, budget reconciliation legislation and appropriation bills, and then Social Security.

The Chronicle of Philanthropy is tracking donations for Hurricane Katrina, if anyone is interested in how much is being given, to which charities, and in the case of institutional donors, by whom. See: http://philanthropy.com/free/update/2005/09/2005090501.htm