House Speaker John Boehner said it would be up to Republican conservatives in the Senate to continue the health-care-funding fight. Associated Press



House Speaker John Boehner (R., Ohio) had been trying to avoid such a tight link between the issues out of fear that it would lead to a stalemate and trigger a shutdown, but he reversed course under pressure from conservatives working to make "defunding" the health law a litmus test in this budget fight.

The measure would then go to the Democrat-controlled Senate, which is likely to remove the health-law provisions and send a simple government-funding measure back to the House. Conservatives there would then face the question of whether to pass the bill and keep the government open, or go through another round of legislative battle.

The budget debate is playing out in tandem with a fight between the parties over terms for raising the nation's debt ceiling, which the Treasury says must be done by mid-October so that the government can continue paying its bills.

Republican leaders said the House, as early as next week, would vote on a bill to extend government borrowing authority for one year. It also would delay implementation of the health-care law for the same amount of time, include measures to expedite construction of the Keystone XL pipeline, create instructions for overhauling the tax system and make other changes to government spending programs for which Republicans have previously pushed, aides said.

Mr. Boehner told House Republicans in a closed-door meeting that his new approach would put the onus for carrying the health-care fight on the Senate—including on tea party-aligned lawmakers such as Sens. Ted Cruz (R., Texas) and Mike Lee (R., Utah). The senators had criticized Mr. Boehner's earlier plan to pass a government funding bill without firm guarantees that the bill would include provisions to hamper the health law.

"We're going to put Obamacare defunding directly into the [government funding bill]," Mr. Boehner said. "And then we're going to send it over to the Senate, so our conservative allies over there can continue the fight. That's where the fight is."

Messrs. Lee and Cruz issued a statement welcoming the Boehner move, but they predicted the Senate would strip out the language cutting health-care funds. To the annoyance of House Republicans, the senators put the onus back on the House. Mr. Cruz urged House Republicans to "stand firm, hold their ground."

Rep. Sean Duffy (R., Wis.) said in a Twitter posting that Messrs. Cruz and Lee "refuse to fight. Wave white flag." Rep. Tim Griffin (R., Ark.) aired a common House GOP complaint about Senate Republicans in the health-law fight in another tweet: "So far Sen Rs are good at getting Facebook likes, and townhalls, not much else. Do something.''

The prospect of impasses over next year's budget and the debt ceiling are fueling anxiety in government and among business leaders. The White House has begun notifying federal agencies to prepare for a government shutdown on Oct. 1, two weeks away, an event that could lead to the furlough of hundreds of thousands of federal employees.

Mr. Obama reiterated his demand that Congress pass a debt increase without conditions. "You have never seen in the history of the United States the debt ceiling or the threat of not raising the debt ceiling being used to extort a president," Mr. Obama told the Business Roundtable on Wednesday. "It's irresponsible."

Some Republicans emerged from a Senate Finance Committee meeting Wednesday with Treasury Secretary Jacob Lew expressing fresh frustration that the administration refuses to negotiate on the debt ceiling. "Right now, I don't see a path," said Sen. Orrin Hatch (R., Utah). "The secretary did not have any real suggestions other than this is a matter of grave concern."

The uncertainty is starting to worry business executives who have watched several years of Washington budget squabbling create uncertainty for the economic outlook. Business leaders are troubled by the inability to enact policies that promote growth, said Business Roundtable president John Engler.

Senate Democrats said they wouldn't pass any measure that strips health-law funding. "We are not going to blink," said Sen. Charles Schumer (D., N.Y.).

Because of potential delaying tactics, it could take a week or more for Senate Democrats to pass a bill, and they would need 60 votes at several junctures. If senators move to whittle the bill into a simple short-term funding extension, they would need six Republicans to vote with the 54 Democrats and allied senators.

The House's short-term spending bill is expected to extend government funding at the current spending level, an annual rate of around $986 billion, until Dec. 15.

Rep. Trent Franks (R., Ariz.) said he was "very open" to the new spending plan, but acknowledged that dealing with the measure when it comes back from the Senate would be tricky. "The Senate will do everything they can to demagogue it, and they're in a position to do that," he said. "So it will be a challenge."

—Damian Paletta and Patrick O'Connor contributed to this article.

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