Congress marches closer to shutdown as Senate rejects the House's latest proposal - Oct. 2013

As expected, the Senate on Monday rejected a Republican bill to fund the government that also would delay the Democrats' health care law known as Obamacare, a move that increases the likelihood of a government shutdown.

With only hours left before the first government shutdown since the Clinton era, the Senate voted to table the House spending bill, approved over the weekend, which included amendments to delay the Affordable Care Act for a year and abolish a controversial tax on medical devices that would cover some of the costs of the health care program. The vote sends the bill back to the House.
As a result of Republicans refusing to hold a budget conference to set spending levels for the year, Congress is funding the government with short-term, stop-gap spending bills called "continuing resolutions" that must be approved when old ones expire. Barring an agreement on a new resolution by the end of Monday, parts of the federal government will close down until the parties can reach a compromise.
Earlier this month, the House Republicans passed their first version of a spending bill but added a controversial amendment that would defund Obamacare. After a lengthy debate over the bill in the Democrat-controlled Senate, which included a 21-hour protest speech from Texas Republican Sen. Ted Cruz, the upper chamber rejected the House bill and returned its version with the Obamacare funding reinserted.
Senate Democratic leaders warned that they would accept nothing short of a “clean” continuation of funding — one without riders such as defunding Obamacare — a move that practically dared Republicans to blink.
With the clock ticking, House Republicans dug in their heels deeper.
Over the weekend, the House approved another bill, the one that would delay the implementation of Obamacare for a year and permanently abolish a tax on medical devices. That's the bill the Senate rejected Monday.
House Speaker John Boehner, R-Ohio, chided Senate Democrats Monday for waiting until the day before a shutdown to act and reiterated the House’s intention to use the shutdown battle as a vessel to cripple the health care law.
"This law is not ready for prime time. The House has done its work,” Boehner said on the House floor. “It's time for the Senate to listen to the American people just like the House has listened to the American people and pass a one-year delay of Obamacare."
President Barack Obama, who has vowed to veto any spending bill that tampers with the Affordable Care Act, said Monday that he was not "resigned" to a shutdown.
“I suspect I will be speaking to the leaders today, tomorrow and the next day," Obama said.
Now that the Senate has rejected the latest House bill, how Republican House members respond will determine whether to expect a shutdown.
There are several paths House Republicans could take between now and midnight: The easiest way forward, of course, would be to simply pass a “clean” bill. The vote would likely pass the House, but it would require help from House Democrats — something that would be unusual, because House Republican leaders rarely bring bills the floor that don't have support from a majority within the GOP conference. (Boehner has not been in contact with House Democratic Leader Nancy Pelosi this weekend, or signaled that he will call on Democrats to help out, Maryland Rep. Chris Van Hollen, a top Democrat, said Monday.)

If Boehner chooses to go the route of a clean bill, he could choose one that funds the government for only a few days, which would give both parties more time to negotiate. (Or rather, start negotiating.) Even less likely than this already unlikely scenario would be for Boehner to hold a vote on a bill that provides funding into November.
If Boehner adopts the clean-bill option, however, he would almost surely face a revolt from conservative members of the House Republican conference, a group that has already strong-armed him into moving forward with the shutdown strategy.

Before the House chose to attack Obamacare using the mandatory spending bill, House Republicans had planned instead to use a forthcoming vote to raise the federal government’s debt limit as the vehicle for delaying the law. However, with support from Cruz and his allies in the Senate, House conservatives demanded action immediately. Boehner relented, and the federal government could face a shutdown as a result.
House Republicans also could respond by relenting on the demand for a full Obamacare delay, and ask instead for more politically palatable concessions that some Democrats might be open to accept.
“There are a lot of items on the table,” California Rep. Kevin McCarthy, a top Republican, said on "Fox News Sunday."
As of this writing, House Republican leaders are still working on their strategy, a leadership aide told Yahoo News.
But for those not rooting for a shutdown, the prospects look grim.  LINK