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Budget Deal Avoids Government Shutdown

By Linda D. Kozaryn
American Forces Press Service

WASHINGTON, April 8, 2011 – Less than an hour before the federal government would have been forced to shut down, President Barack Obama announced that leaders in both parties had reached a budget agreement.

Click photo for screen-resolution image
Speaking at the White House at 11:04 EDT, April 8, 2011, President Barack Obama announces reaching a budget agreement that averts a government shutdown. DOD screengrab

(Click photo for screen-resolution image);high-resolution image available.

"Tomorrow, I'm pleased to announce that the Washington Monument, as well as the entire federal government, will be open for business," Obama said at 11:04 p.m. EDT. "And that's because today Americans of different beliefs came together again."

The agreement calls for "the largest annual spending cut in our history," Obama noted. "Like any worthwhile compromise, both sides had to make tough decisions and give ground on issues that were important to them. And I certainly did that."
The agreement will allow small businesses to get the loans they need, families to get the mortgages they applied for, and hundreds of thousands of Americans to show up at work and take home their paychecks on time, including the nation's brave men and women in uniform, he said.
Following the president's announcement, the Office of Management and Budget issued a memorandum stating that while the current Continuing Resolution would expire at midnight tonight, Congress had indicated that it reached agreement on a funding bill for the rest of the fiscal year.
"Earlier this evening, the Senate passed a short term Continuing Resolution that will extend current funding levels until the full-year bill can be passed and enacted next week. We expect the House to take up the CR shortly and for the President to sign this CR no later than tomorrow. As a result, at this time agencies are instructed to continue their normal operations."
A Pentagon spokesman stressed that Defense Department employees' and service members' pay will not be impacted. "There was no shutdown, and temporary funding has been approved by Congress. Everyone will get paid as usual," he said.
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Related Sites:
Transcript: President's Remarks
OMB Memorandum: Anticipated Enactment of a Continuing Resolution


Article is closed to new comments.

The opinions expressed in the following comments do not necessarily reflect those of the U.S. Department of Defense.

4/9/2011 3:06:05 PM
Please do not follow in the footsteps of the governing officials in Sacramento, CA. As a Californian I have already been disappointed with our state's inability to provide stable political actions. I pray the federal government be a positive example to our CA politicians, not a poor example of leadership and low standards.
- April, CA

4/9/2011 9:16:07 AM
I am concerned with the last paragraph, "Pay will not be affected, they will be paid as usual". This is incorrect as their pay for the 15th has been cut in half. In many, many cases of a service members personal budget, this affects them greatly. Half a paycheck when they already live paycheck to paycheck as it is. Does this mean that the correction will be made immediatly and their pay will be full on the 15th, or does this just mean that like in the past, they will have to wait until th 15th of the following month to get the difference? This should not have happend until after a decision was made not a week prior.
- Kerri, Texas

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