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ANALYSIS: Budget battles threaten to limit Obama’s agenda

Reuters, Washington

After a brutal “fiscal cliff” battle, US President Barack Obama’s looming budget confrontation with US Congress threatens to sharply curtail his second-term agenda and limit his ambitions on priorities such as immigration reform and gun control.

Obama has vowed to push ahead with other legislative priorities during the fiscal fight, but faces the likelihood that they will be elbowed aside in a fierce struggle with Republicans over approaching deadlines to raise the limit on federal borrowing, cut spending and fund government operations.

Obama and US Congress must agree by the end of March on increasing the US$16.4 trillion debt ceiling, the fate of US$85 billion in delayed automatic spending cuts and passage of a bill to fund the government after a temporary measure expires.

Those budget battles could be even more intense than the weeks-long fiscal cliff fight that ended on New Year’s Day with an agreement to raise taxes on the wealthy, leaving divided Republicans itching for revenge and a fractured relationship between Obama and Republican House Speaker John Boehner.

“The fiscal cliff fight overwhelmed nearly everything else at the White House for two months. A similar result in the budget battle would be bad news for Obama, cutting into the narrow one-year to 18-month window when second-term presidents traditionally still have the political clout to achieve their most significant legislative victories,” said Jim Kessler, senior vice president for policy at the centrist think tank Third Way.

“From a Republican standpoint, if you don’t want Obama to get any oxygen on these other issues, focusing on the fiscal cliff and all these budget issues is a very good way to run out the clock on him,” former Capitol Hill aide and Republican strategist John Feehery said.

Obama has promised to pursue a broad second-term agenda focused on comprehensive immigration reform, bolstering domestic energy production, fighting climate change and gun control.

After the “fiscal cliff” deal, he said he would not curtail his agenda because of the looming budget fights.

Republicans are primed for the coming fight, believing they have more leverage against Obama than during the fiscal cliff battle. Failure to close a deal on the debt ceiling could mean a default on US debt or another downgrade in the US credit rating.

A failure to reach agreement on a government funding bill could mean another federal shutdown like brief ones in 1995 and 1996.

Republicans say they will not back an increase in the federal debt ceiling without significant spending cuts opposed by many Democrats, particularly to popular “entitlement” programs such as the government-funded Medicare and Medicaid healthcare plans for the elderly and poor.

Administration officials promise to move quickly this month in pursuit of new legislation on gun control and immigration. The gun control effort will be led by US Vice President Joe Biden, who was appointed to develop a response to the deadly Connecticut school shootings last month.

However, what seemed to be fresh momentum for new measures such as a ban on assault rifles after the mass killing in Connecticut could be stalled by a protracted focus on the seemingly never-ending budget showdowns.

Obama also plans to introduce comprehensive immigration legislation this month. Republicans will have fresh incentive on the issue after Hispanics soundly rejected Republican presidential contender Mitt Romney in the November election, giving Obama more than 70 percent of their vote.

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