Disputes around border wall funding, push government closer to shutdown

Policy Watch

• Border wall fight to result in shutdown. Barring an 11th hour deal, seven spending bills funding several federal government departments including the Department of Homeland Security are set to expire at midnight on Saturday. Spending bills would have required some support from Democrats in the Senate to clear procedural hurdles requiring 60 votes, as Republicans hold just a 51 seat majority, but none of the compromise bills with Democratic support contain the $5 billion in border wall funding demanded by President Trump. The President has indicated he will veto any bipartisan bill that does not contain that funding. Federal agencies have begun to prepare for a shutdown, though the shutdown will be “partial,” as several agencies have already been funded and employees with “essential” responsibilities would still report to work. [WSJ]

• ACA ruling met with legal skepticism from both parties. A federal judge in Texas made waves after ruling Friday that the ACA’s individual mandate was unconstitutional, and that the rest of the law was unconstitutional because it could not be separated from the mandate. The ACA will remain in effect as the case makes its way through the appellate courts, but several lawmakers from both parties criticized the ruling, in particular its expansive nature. Several parts of the ACA have nothing to do with subsidized markets and the individual mandate, including pre-existing condition protections, dependent child rules, Medicaid expansion and other provisions. The Trump administration applauded the ruling, but senior Policy Advisor Stephen Miller argued the case would likely be heard by Supreme Court, where the administration believes the ruling would eventually be upheld. [The Hill]

• International climate change negotiations conclude in Poland. The latest meeting of the Conference of Parties (COP), the international body responsible for creating a global climate change action plan, concluded its 24th annual summit Saturday. The negotiations this year centered around implementation for the COP 21 Paris accord; negotiators worked to establish a “Paris rule book,” which established reporting standards and acknowledged the dramatic IPCC report released this year identifying the narrowing paths to preventing catastrophic climate change. [Washington Post]

  Economic Indicators and News

• December homebuilder sentiment falls to 56.December homebuilder sentiment has fallen 4 points this month, and a whopping 20 points since last December, to its lowest level in three and a half years. Rising lending costs and little construction in the “entry-level” market has produced a crunch in supply and increased prices significantly. Northeast-based home builder sentiment was lowest at just 50 points, an 8-point drop from last month’s reading. [CNBC]