Congress Approves 2011 Budget Plan

UPDATE-The Senate has now passed the budget bill in a 81-19 vote, but rejected amendments to repeal healthcare reform and de-fund Planned Parenthood. The House approved the two controversial amendments.

WASHINGTON- In a 260-167 vote Thursday, the House approved a plan to fund the government for the remainder of the fiscal year.

The budget represents a compromise struck between Congressional leaders and the White House mere hours before the government would have shut down late Friday night. Once passed through the Senate, it will ensure government funding through September.

The plan aims to eliminate nearly $40 billion from a variety of agencies and programs in an attempt to fulfill Republican request for deep cuts. House Speaker John Boehner (R-Ohio) and Senate Majority Leader Harry Reid (D-Nev.) heralded the level of reduction as “historic” in a joint statement sent out last week.

However, according to a report from the AP press, the CBO believes the savings may be considerably less, since they are offset by new spending in Defense and makes cuts that won’t have an immediate impact.

However, Boehner dismissed those concerns prior to Thursday’s vote, explaining “people have to understand we are cutting $38.5 billion of money that has already been authorized and appropriated. And anyone who doesn’t believe this money wouldn’t be spent if we don’t act is kidding themselves.”

Thursday’s vote comes while both parties prepare for larger fiscal battles. Legislative action is still needed to raise the debt ceiling and a budget plan for FY 2012 has already led to partisan divide after President Obama and Republican Budget Chair Paul Ryan (Wisc.) both introduced competing measures.