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JANET HOOK Reporting from Washington

With the struggle over healthcare entering an even tougher phase, President Obama has hit both a milestone and a speed bump in his duel pursuit of a major overhaul of the nation's medical system and a rebirth of progressivism in America. House approval of the legislation Saturday– even if Democrats could move it no farther--was a signal accomplishment that has eluded presidents for decades. But the close vote and the exertions it took to secure a majority were laden with warning signs as the issue moves to the Senate. Even though the House is a bastion of liberalism, the health care overhaul was a tougher sell than expected and the bill turned out to be more conservative in its price tag, more limited in the scope of its government-run insurance option, and tighter in its restrictions on abortion funding than many Democrats had hoped. Moreover, the narrow victory – 220 to 215 in a chamber where Democrats hold 258 seats – was unsettling for liberals because moderate Democrats have a louder voice in the Senate and Republicans have more delaying power. What is more, the political climate has become more challenging for progressivism than it was when Obama's agenda for change was hatched in his 2008 presidential campaign and ratified with his resounding election one year ago. "The joys and the exultant expectations that rang out from Grant Park across America have been mainly silenced by a year of economic turmoil and international uncertainty," Democratic pollster Peter Hart wrote in a recent memo marking Obama's election anniversary. "But more striking than the domestic and international struggles is the sense of disappointment and disgust the American public feels towards Washington," he said. When Obama was campaigning, publci animus toward President Bush was read as a broad mandate for change; now, polls find many independent voters questioning whether Obama is bringing the change they wanted. A year ago, rising health care costs were at the top of voters' worries; now, with unemployment in the double digits, jobs are paramount. "It's an historic accomplishment but I'm not sure it's consistent of the public mood," said Vin Weber, a Republican strategist and former House member, said of the House health care bill. "They began pursuing it at a time when they believed we were entering a new progressive era in American politics. But the public has shifted in its attitudes toward taxing, spending and the size of deficits in the last 8 to 9 months.'' One telling sign of the shift is the fact that Obama and Democratic leaders have had to lean so hard on Democrats to take a vote many saw as fraught with political risks rather than rewards. "Given the heated and often misleading rhetoric surrounding this legislation I know that this was a courageous vote for many members of Congress,"' Obama said Sunday in a Rose Garden appearance, "and I'm grateful to them and for the rest of their colleagues for taking us this far. "Now it falls on the United States Senate to take this baton and bring this effort over the finish line," he said. That finish line may not be crossed as soon as Democrats had hoped. It looks increasingly likely that a bill will not be ready for Obama to sign until after the New Year. But Democratic leaders still cling to the goal of clearing the measure before the end of 2009. "It's too bad the president has to spend all this time trying to rustle up votes within his own party," said Jim Manley, spokesman for Senate Majority Leader Harry Reid (D-Nev.) "But I honestly believe the House vote gives us momentum that Senator Reid is going to use when he talks to his colleagues about the legislation this week." Reid is hoping to bring the issue before the Senate in a week or so, but he has yet to put the finishing touches on the bill that will be the starting point of debate – a blend of differing versions produced by two committees. Final details have to be determined and analyzed for their impact and cost, but it is clear that the Senate bill will have major areas of overlap with the House's: Both bills will expand Medicaid coverage for the needy, provide private-insurance premium subsidies for people of modest means, and set new rules to make it harder for insurance companies to deny coverage or charge higher rates to people based on their medical status or history. Both bills would require everyone to have health insurance, and set up a new insurance exchange to offer affordable policies for small businesses and individuals who do not get coverage from their employers. Both bills would include one government-run "public option'' among the choices. However, Reid has said that his bill – in a concession to moderates – would allow states to "opt out'' of offering the government plan. The Senate bill may or may not include the House' bill's requirement that employers provide coverage for their workers. In another major difference, the Senate bill will offset the cost primarily with a tax on companies that offer very expensive health insurance policies. The House's financing comes mostly from an income tax surcharge on upper income people. That disparity will be among the biggest issues to be ironed out when, after the Senate passes its version, negotiators in a House-Senate conference committee write the final bill. Senate Republican Leader Mitch McConnell (R-Ky.) on Sunday highlighted the fact that the 39 House Democrats who voted against the bill – mostly conservatives and lawmakers from Republican-leaning districts – represented one in seven Democrats in the House caucus. "It should serve as a stark reminder that Americans don't want a 2,000-page, trillion-dollar government experiment,'' said McConnell. Despite the changes made in the House bill to win enough conservative Democratic and anti-abortion votes to pass it, the measure is still generally regarded as too liberal for the Senate. "The House bill is dead on arrival in the Senate,'' said Sen. Lindsey Graham (R-S.C.) Sunday on CBS's "Face the Nation.'' Senate Republicans do not expect to derail the legislation entirely, but the they do have more latitude than the House GOP to offer amendments that could change the bill – or at least put political pressure on moderate and conservative Democrats. In both the Senate and the House, centrist Democrats have tremendous leverage over the liberal majority of their party. The threat of losing their crucial votes is what drove House leaders to make big concessions on the terms of the public option that liberals did not like – and to allow new restrictions on abortion vigorously opposed by a majority of House Democrats. Even though that abortion amendment was approved, its opponents still swallowed hard before voting for final passage – a show of pragmatism that will likely be required among Senate Democrats as well. "Getting the best possible bill that doesn't pass isn't legislation,'' said Rep. Jim McGovern (D-Mass.), who opposed the abortion amendment but voted for the bill. "That's a therapy session." END IT


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Home arrow Blog arrow Budget Has Obama Courting Fellow Democrats
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Wednesday, 25 March 2009

Published: March 25, 2009

WASHINGTON — President Obama loped up the stairs inside the Capitol on Wednesday, running a few minutes late for a lunch with Democratic senators. The standing ovation as he entered the room masked an undercurrent of friendly but distinct differences within.

As he presses Congress to keep his ambitious agenda intact, Mr. Obama is navigating multiple constituencies within his party. Centrist Democrats in the Senate are trying to organize into a muscular bloc that is already putting its stamp on the president’s $3.6 trillion budget.

At the same time, liberal groups, with tacit encouragement from the White House, are pushing back, trying to keep Mr. Obama’s core domestic initiatives — on health care, climate change and education — from being watered down in the legislative process.

The divisions are no greater than those that existed within the Republican Party when it was in power, and at this point they do not threaten Mr. Obama’s ability to win the main elements of what he is seeking in his budget.

But they bring to life a paradox of political success: As a party expands its ideological and geographic reach, as the Democrats have in the last two elections, it becomes harder to hold together, forcing its leaders to spend time papering over internal differences even as they confront a smaller but more unified opposition.

Faced with just such a challenge, the White House unleashed a broad offensive on Wednesday, a mix of muscle and negotiation, in an effort to contain the varying viewpoints within the Democratic Party, split the difference and move forward.

The muscle came in new television advertisements urging centrist Democrats, many of whom have a streak of fiscal conservatism that makes them leery of the increases proposed by the president, to support the budget.

The spots are being broadcast in 11 states and urge moderate Republican senators as well as Democrats to support the administration’s budget priorities. The campaign is paid for by Americans United for Change, a group financed largely by organized labor, and was organized with the permission of Democratic strategists close to the White House.

At the same time, Mr. Obama’s former campaign team has urged supporters to call their members of Congress.

The negotiation came when the president, Vice President Joseph R. Biden Jr. and a cadre of advisers arrived on Capitol Hill to help present a unified front for the party.

In the Mansfield Room of the Capitol, just steps from the Senate floor, Mr. Obama stood below a portrait of George Washington as he made his case over a lunch of finger sandwiches, vegetable soup and macaroni and cheese. The president said he would be flexible, several participants in the private meeting said, but he asked the senators not to abandon his priorities.

His main target was a group of 16 centrist Democrats who want to pare the budget’s spending proposals and could hold the balance of power on other issues. The group was organized by Senator Evan Bayh of Indiana, a relatively conservative state that Mr. Obama pulled into the Democratic column in November. Other members hail from regions like the South and Midwest that are culturally and politically a long way from the coastal and urban liberalism that long defined the party.

People on all sides say that they believe the party will pull together on the big issues, but that before it reaches agreement, divides are likely to flare again and again. For days, tensions have been building, which is one reason Mr. Obama came.

“Of course, we want to see him succeed,” said Senator Mark Pryor, Democrat of Arkansas, as he entered the luncheon. “My guess is we’re not going to walk in lock step on everything the administration wants. Maybe the Republicans do that, but that’s not a healthy process.”

With Mr. Biden concentrating on the House on Wednesday, Mr. Obama was on the Senate side of the Capitol to begin working through these differences.

Yes, he said, he is flexible on his idea to eliminate direct payments to farmers. And, yes, he said, he will think about his proposal to raise taxes on gas and oil producers, which has evoked an outcry among small producers in gulf states. But he also held firm on his belief that his three top priorities — education, health care and energy — not be trimmed.

Senator Kent Conrad, Democrat of North Dakota and chairman of the Budget Committee, has expressed considerable differences with the president’s initial budget and has proposed one that he believes is more politically palatable. Although Mr. Conrad was one of the first senators to endorse Mr. Obama’s presidential candidacy, the budget differences have threatened to fray their relationship.

But Mr. Conrad said the acrimony should not be overstated.

“I try to be respectful,” he said, “but at the same time we’ve got a debate going on, an important debate for the country. If everybody in the room thinks the same thing, nobody is thinking very much.”

When the senators stepped away from their luncheon on Wednesday, after a dessert of sugar-free Jell-O, Democrats were quick to note that any disagreements inside the party paled in comparison to the differences they once had with President George W. Bush.

Still, several Democrats said they could not commit to voting for the budget until they studied the final number, the tax cut provisions and how the spending plan would ultimately affect the deficit projections. As the Budget Committees in the House and the Senate worked into the night on the details, different strains of ideologies began to assert themselves again.

“Well, I think we are on the same page,” said Senator Ben Nelson, Democrat of Nebraska. He added, “We may not agree as to what the page says.”

 



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