U.S. Congress readies stopgap bill to avert shutdown, aid Ukraine

WASHINGTON, Sept 27 (Reuters) – The U.S. Senate planned an initial vote on a stopgap spending measure on Tuesday to keep federal agencies running past the end of this week, while Congress continues to negotiate bills to fund the government through the next fiscal year.

President Joe Biden’s Democrats, who control both chambers of Congress, are expected to avoid an embarrassing partial government shutdown just six weeks before the Nov. 8 midterm elections, when control of Congress will be at stake.

The bill, which would extend overall government funding through Dec. 16, was facing resistance because of an energy permitting reform measure.

If the Senate blocks consideration of this two-pronged bill, Majority Leader Chuck Schumer and House of Representatives Speaker Nancy Pelosi were expected to promptly retool the measure to ensure quick passage of the spending components and keep the government fully operating.

The spending provisions include $12.3 billion in new money to help Ukraine turn back Russia’s invasion, House of Representatives Appropriations Committee Chairwoman Rosa DeLauro said in a statement.

This includes military and economic assistance. In addition, it authorizes Biden to direct the drawdown of up to $3.7 billion for the transfer to Ukraine of excess weapons from U.S. stocks.

In early September, Biden requested $11.7 billion in military and economic aid.

Amid reports of Russian forces threatening the safety of Ukraine’s nuclear power plants and Russian President Vladimir Putin hinting he might use nuclear weapons against Ukraine, the legislation would appropriate $35 million “to prepare for and respond to potential nuclear and radiological incidents in Ukraine,” according to a bill summary.

Congress has resorted to this kind of last-minute temporary spending bill in 43 out of the past 46 years due to its failure to approve full-year appropriations in time for the Oct. 1 start of a federal fiscal year, according to a government study.

MANCHIN’S PERMITTING BILL A BARRIER

The first vote’s outcome was unclear because of the fight over the add-on by Democratic Senator Joe Manchin, who pressed to include an unrelated measure to speed up the government’s permitting process for energy projects.

Manchin’s proposal would speed approvals of fossil fuel projects like natural gas pipelines but also for electricity transmission lines needed to bring power from wind and solar farms to cities.

The proposed legislation includes permitting reform provisions and directs $250 million from the recently passed Inflation Reduction Act to “improve and accelerate reviews for designated projects,” including the Mountain Valley Pipeline in Manchin’s home state of West Virginia.

Its chances appeared to narrow on Tuesday, after Senator Richard Shelby, the senior Republican on the Senate Appropriations Committee, said in a statement: “If the Democrats insist on including permitting reform, I will oppose” advancing this temporary funding bill.

Democratic Senator Tim Kaine of Virginia weighed in too, saying he had not been included in Manchin’s negotiations on legislation speeding up government consideration of Equitrans Midstream Corp’s (ETRN.N) Mountain Valley Pipeline (MVP).

Kaine noted the project would run through Virginia “for 100 miles and takes property from landowners.” He added, “We should pass a continuing resolution that is free of the unprecedented and dangerous MVP deal,” outlining a possible plan if the Senate votes to stand in the way of the bill as currently written.

Some Democrats and environmentalists also are opposed, fearing it would spark more development of fossil fuel projects at a time when the effects of climate change from carbon emissions are accelerating.

While Republicans normally favor quicker government reviews of fossil fuel projects, they have been angry at Manchin since he helped Democrats pass a bill this summer addressing climate change and lowering some healthcare costs.

“Now for the Republicans to balk, whether it be about politics or I really don’t know why, but I’m hoping that at least 15 or 20 come to their reasonable senses” and support the bill, Manchin told CNN.

Also included is a five-year renewal of Food and Drug Administration user fees being collected from drug and medical device companies to review their products and determine whether they are safe and effective, the bill summary showed.

The law authorizing the collection of fees expires on Friday.

The last time Congress allowed funding to lapse was in December 2018, when Democrats balked at paying for then-President Donald Trump’s U.S.-Mexico border wall, leading to a record, 35-day impasse and partial government shutdown.

Reporting by Richard Cowan; Additional reporting by Patricia Zengerle, Doina Chiacu, Susan Heavey, Katharine Jackson and Ahmed Aboulenein; Editing by Scott Malone, Josie Kao and Jonathan Oatis

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