Disaster aid on hold in spending dispute

WASHINGTON -- The potential of a government shutdown at the end of the month loomed slightly larger yesterday, and the Federal Emergency Management Agency was left with only a few days' worth of aid in its relief fund, after a critical measure to fund the government through mid-November was narrowly defeated in the House Wednesday night.

GOP leaders were unable to overcome objections from Democrats who believed the $3.7-billion bill did not do enough for disaster victims and from conservative Republicans who wanted to use the bill to cut spending more deeply.

The spending bill is needed to keep the government running through Nov. 18; current spending authority stops at the end of September.

The surprise 230-195 defeat could further rattle consumers and investors who have been unnerved by the high-stakes budget battle that has played out in Washington this year. Congress pushed the government to the brink of a shutdown in April and the edge of default in August.

Democrats were opposed because the measure contains $1.5 billion in cuts to a government loan program to help car companies build fuel-efficient vehicles. Many GOP conservatives felt the underlying bill permits spending at too high a rate.

The outcome sends House Speaker John Boehner (R-Ohio) and his leadership team back to the drawing board as they seek to make sure the government doesn't shut down at the end of next week. It also raises the possibility that the government's main disaster relief program could run out of money early next week.

Republican leaders said they would figure out a way to pass the bill and avoid a government shutdown that would affect everything from national parks to scientific research.

"There is not going to be a shutdown. Everybody needs to relax," said Rep. Eric Cantor, the No. 2 House Republican.

Republicans might remove the car-program cut to pick up Democratic support, an aide said -- an action that could further alienate conservatives.

"At the bottom line, the disaster victims have to be treated far more fairly than they did today," said Sen. Charles Schumer (D-N.Y.).

All of the Long Island representatives voted along party lines, except Rep. Carolyn McCarthy (D-Mineola), who voted for the temporary government funding measure. "It was a vote for the disaster funding that Long Islanders need," said spokesman Shams Tarek.

"Republicans should go back to the drawing board, quit politicizing hurricanes and come back with a different offset that doesn't cost us jobs and raise the white flag to OPEC," said Rep. Steve Israel (D-Dix Hills).

The underlying stopgap funding measure would finance the government through Nov. 18 to give lawmakers more time to try to reach agreement on the 12 unfinished spending bills needed to run government agencies on a day-to-day basis for the 2012 budget year.

Forty-eight Republican broke with GOP leaders on the vote; six Democrats voted for the measure.

With Tom Brune