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Government Shut Down Update 2.0

Oct 14, 2013

Senate Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) have reportedly reached a deal to reopen the government and extend the debt limit.

As of this afternoon, the two were putting the final touches on a package that would fund the government at the FY 2013, $986 billion level through January 15 and raise the debt ceiling through February 7. Additionally, the plan would force the Senate and House to engage in negotiations over a broader budget deal and report back by December 13.

The compromise would also require the Department of Health and Human Services to verify the income of individuals receiving health insurance subsidies under the Affordable Care Act (ACA), a conservative priority. In addition, it would delay for one year the implementation of an ACA reinsurance tax, which could be seen as a win for unions.

Finally, the plan would provide agencies with flexibility in implementing the next round of sequester cuts, set to hit in January 2014, if they are left in effect.

Senators are expected to meet tomorrow morning to review the deal, which could be announced soon after.

Across the Capitol, House Speaker John Boehner (R-Ohio) is reviewing the proposal. He is set to meet with members of his party tomorrow to discuss their options. It remains unclear as to how the House will act if the package manages to pass the Senate.