Democratic and Republican sources say that a two track process will likely resolve the current standoff on Capitol Hill — the key questions now are about timing and choreography.
House Republican and Senate Democratic appropriators are close to a deal to avert a government shutdown and fund federal programs through the end of September.
On a separate track, Senate Majority Leader Harry Reid and his GOP counterpart Sen. Mitch McConnell are hashing out a plan to renew the payroll tax cut and extend unemployment benefits that can pass the Senate (though there’s some disagreement about how involved McConnell’s staff is — Republicans say it’s mostly up to Reid to present a viable plan).
Senate Democrats would like to move these two items as a unit, suggesting they still don’t fully trust Republicans to deal in good faith on the payroll tax cut issue if the threat of a government shutdown is off the table. House Speaker John Boehner has publicly vowed to reconvene the House if Senate leaders can’t cut a payroll tax deal until after the government is funded. But Democrats worry that will empower McConnell to make demands he wouldn’t otherwise have the leverage to make.
