WASHINGTON, Sept 26 (Reuters) – The U.S. Senate on Monday will try to resolve a budget deadlock that raises the specter of a government shutdown and threatens aid for thousands of Americans hit by a spate of natural disasters.

With money about to run out for victims of hurricanes, wildfires and other recent disasters, Democrats and Republicans remained deadlocked over a bill that would provide emergency relief and keep government agencies running beyond Friday.

After a summer of political standoffs, public confidence in Washington dropped to a new low, with only 43 percent saying they trusted the federal government to handle domestic problems, according to a Gallup poll.

Lawmakers from both parties vowed to act quickly after Hurricane Irene raked the East Coast in August, the latest in a series of disasters that has made 2011 one of the most extreme years for weather in U.S. history.

They also promised to ensure the government can continue operating beyond Sept. 30, the end of the fiscal year, without the brinkmanship that has marked other budget disputes.

But so far, lawmakers have been unable to pass a bill that would accomplish those things.

Republicans want to offset some of the money earmarked for disaster relief with budget cuts elsewhere, while Democrats say Congress usually does not let budget concerns slow down needed assistance.

WASHINGTON (Reuters) – With aid to disaster victims running out, the U.S. Congress on Friday ratcheted up a high-stakes confrontation over spending that once again threatens the government’s ability to function smoothly.

By a vote of 59 to 36, the Democratic-controlled Senate rejected a broad spending bill that had passed the Republican-controlled House of Representative hours earlier.

Lawmakers from both sides said the bill, which would keep the government running beyond the end of September and provide badly needed aid to victims of recent floods, tornadoes and other disasters, should not be controversial.

But the bitter partisan divide over spending that has dominated Washington this year once again threatened Congress’ ability to pass even the most basic legislation as lawmakers squabbled over two provisions that account for a fraction of the trillion-dollar-plus bill.

Aid for disaster victims could dry up by Tuesday if Congress does not replenish a dwindling relief fund. Congress also must extend funding for the entire government to avoid a shutdown on Sept. 30, the end of the fiscal year.

Democrats want to increase the amount of disaster funding and remove a cut to an electric-car program that Republicans included to partially offset the added disaster costs.

With both chambers eager to adjourn for a week-long recess, it was not immediately clear how Congress would resolve the standoff.

WASHINGTON, Sept 23 (Reuters) – With aid to disaster victims running out, the U.S. Senate Democratic leader on Friday vowed to hold a quick vote to defeat a House-passed spending bill, clearing the way for negotiations to avoid a government shutdown.

Senate Majority Leader Harry Reid said he planned a morning discussion with Senate Republican Leader Mitch McConnell to discuss how to craft a bill that could be more palatable to Democrats.

Congress is up against a Sept. 30 deadline, when the fiscal year ends and government money runs out.

“We expect a vote very quickly,” Reid said at the opening of the Senate, adding the chamber was awaiting the bill that passed early Friday in the Republican-led House of Representatives.

Adding to the urgency, aid for victims of tornadoes, wildfires and other disasters could dry up by Monday if Congress does not replenish a dwindling relief fund. Funding for everything from national parks to law enforcement could expire in a week.

Even in the face of rock-bottom approval ratings of Congress, the dispute saw lawmakers struggling to bridge their differences to pass even the most essential legislation.

By a largely party-line vote of 219 to 203, the House in an after-midnight vote approved a bill that would keep the government running through Nov. 18 and provide $3.65 billion for disaster relief in one of the most extreme years for weather in U.S. history.

WASHINGTON, Sept 22 (Reuters) – Republican leaders were scrambling on Thursday to find the votes to keep the U.S. government funded after the embarrassing defeat of a spending bill threw into question Congress’ ability to pass basic laws.

The House of Representatives and Senate must pass legislation to keep the government fully functioning beyond Oct. 1 while lawmakers continue to debate a full budget. Democrats and Tea Party-aligned Republicans united to defeat the spending bill on Wednesday, albeit for opposite reasons.

House Speaker John Boehner, the top Republican in Congress, said the dispute would not disrupt government operations.

“We’ll work our way through this. I’ve always been confident that we’ll be able to come to an agreement and we will,” Boehner said at a news conference.

The Republican leadership has vowed to lower the temperature on Capitol Hill after fierce budget battles with Democrats pushed the U.S. government to the brink of a shutdown in April and the edge of default in August.

The months of turmoil on Capitol Hill have spooked consumers, rattled investors and led to a cut in the country’s top-notch AAA credit rating.

The unexpected failure of the spending bill in the House on Wednesday showed that Congress still has trouble passing normally routine legislation.

WASHINGTON, Sept 22 (Reuters) – Republican leaders were scrambling on Thursday to find the votes to keep the U.S. government funded after the embarrassing defeat of a spending bill threw into question Congress’ ability to pass basic laws.

The House of Representatives and Senate must pass legislation to keep the government fully functioning beyond Oct. 1 while lawmakers continue to debate a full budget. Democrats and Tea Party-aligned Republicans united to defeat the spending bill on Wednesday, albeit for opposite reasons.

Republican leaders have not yet figured out how to proceed on the bill, aides said on Thursday.

The Republican leadership has vowed to lower the temperature on Capitol Hill after fierce budget battles with Democrats pushed the U.S. government to the brink of a shutdown in April and the edge of default in August.

But the unexpected failure of the spending bill in the House on Wednesday showed that Congress still has trouble passing normally routine bills.

The months of turmoil on Capitol Hill has spooked consumers, rattled investors and led to a cut in the country’s top-notch AAA credit rating.

The bill would provide billions of dollars in relief to communities that have been ravaged by tornadoes, floods and other disasters in one of the most extreme years for weather in U.S. history.

WASHINGTON (Reuters) – The House of Representatives unexpectedly defeated a bill that would fund the federal government past September 30 on Wednesday as dozens of Republicans broke with their party to push for deeper spending cuts.

The measure failed by a vote of 195 to 230, with 48 of the chamber’s most conservative Republicans joining Democrats in opposition.

It was an embarrassment for House Republican leaders who have at times struggled to rein in rank-and-file conservatives.

“This is a democracy. This is the sausage factory,” said Appropriations Committee Chairman Hal Rogers, who sponsored the bill.

The surprise outcome 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.

Republican leaders said they would figure out a way to pass the spending 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 Representative Eric Cantor, the No. 2 House Republican, as he emerged from a meeting with other top Republicans after the vote.

WASHINGTON, Sept 20 (Reuters) – The U.S. Congress on Tuesday drifted toward another confrontation that could disrupt wide swaths of the government as Democrats sought to double the amount of disaster aid in a must-pass spending bill.

Republicans said they were confident the dispute would not threaten funds that are needed to keep the government operating past Sept. 30, but the Senate’s top Democrat said he didn’t know if that was the case.

“We’re not going to cave in on this,” Senate Democratic Leader Harry Reid said at a news conference.

Budget disputes between the Republican-controlled House of Representatives and the Democratic-controlled Senate pushed the government to the brink of a shutdown in April and the edge of default in August.

Now the two chambers are headed toward another round of brinkmanship, this time over the emergency aid needed to help local communities recover from one of the most extreme years for weather in U.S. history.

The Obama administration has requested an extra $5.1 billion to help victims of tornadoes, floods and other disasters. The Federal Emergency Management Agency’s disaster fund has dwindled to $257 million, an aide said, and the agency has already suspended some rebuilding efforts to ensure that victims of Hurricane Irene get immediate help.

Republicans want extra disaster aid to be offset by spending cuts if possible to avoid deepening the country’s fiscal woes.

WASHINGTON (Reuters) – The top Republican in Congress on Thursday dismissed President Barack Obama’s jobs-creation package as a “poor substitute” for policies that would boost the economy and ruled out tax increases as a way to close the country’s budget gap.

In a high-profile speech, House of Representatives Speaker John Boehner called on a special congressional committee to consider tax reforms that would close loopholes but not raise rates — or tax revenues — as part of its bid to cut the U.S. deficit.

Boehner’s speech was a comprehensive statement of Republican economic principles as Congress works to bring down the stubbornly high 9.1 percent unemployment rate and tame the national debt.

Republicans have already said they do not support many elements of Obama’s $447 billion jobs package and will not back the tax increases he has proposed to pay for it.

Boehner’s comments indicated that the bill is unlikely to emerge from Congress in anything like its current form.

Even as Boehner said there were some opportunities for common ground, he indirectly criticized the temporary tax breaks that other senior Republicans had said they might support.

Boehner attacked “short-term gimmicks” and said a proposed tax credit for businesses that hire new workers would have little impact if employers were worried about other government policies. Washington’s energies would be better channeled toward reducing regulations on business, he said.

WASHINGTON, Sept 15 (Reuters) – The top Republican in Congress on Thursday dismissed President Barack Obama’s jobs-creation package as a “poor substitute” for policies that would boost the economy and ruled out tax increases as a way to close the country’s budget gap.

In a high-profile speech, House of Representatives Speaker John Boehner called on a special congressional committee to consider tax reforms that would close loopholes but not raise rates — or tax revenues — as part of its bid to cut the U.S. deficit.

Boehner’s speech was a comprehensive statement of Republican economic principles as Congress works to bring down the stubbornly high 9.1 percent unemployment rate and tame the national debt.

Republicans have already said they do not support many elements of Obama’s $447 billion jobs package and will not back the tax increases he has proposed to pay for it. [ID:nS1E78E0YB]

Boehner’s comments indicated that the bill is unlikely to emerge from Congress in anything like its current form.

Even as Boehner said there were some opportunities for common ground, he indirectly criticized the temporary tax breaks that other senior Republicans had said they might support.

Boehner attacked “short-term gimmicks” and said a proposed tax credit for businesses that hire new workers would have little impact if employers were worried about other government policies. Washington’s energies would be better channeled toward reducing regulations on business, he said.

WASHINGTON (Reuters) – Republicans in Congress may have dialed back their rhetoric, but that does not mean they are any more likely to yield to an unpopular Democratic president.

Coming off a bruising debt-ceiling debate that spooked investors, unnerved Americans and took the country to the edge of default, Republican leaders have promised to lower the temperature on Capitol Hill and try to work with President Barack Obama wherever possible.

But Republicans have little incentive to compromise on their small-government philosophy and the spending and tax issues that will dominate the agenda through the end of the year.

Obama’s negative approval rating gives him little clout on Capitol Hill, and a surprise Republican victory in a New York special election Tuesday is seen by his opponents as a further repudiation of his policies.

Many of Obama’s proposals to stimulate the economy and cut into a stubbornly high 9.1 percent unemployment rate also run counter to Republicans’ small-government philosophy. Since unveiling his jobs plan last week, Obama has repeatedly exhorted Republicans to approve the $447 billion package.

Following the current Capitol Hill playbook, Republicans may be unwilling to give the president a victory as they gear up for elections in November 2012 that could hand them control of the White House and both chambers of Congress, said Ethan Siegal, of the public policy analysis firm The Washington Exchange.

“Their new post-summer recess strategy appears to be to smile and not look so harsh as they did during the debt ceiling debate, to look open to anything that President Obama might propose, but basically stick to their philosophical and political guns,” Siegal said.