Skip to Content
Streetsblog New York City home
Streetsblog New York City home
Log In
U.S. Senate

Dealbreaker: Senate Rejects House Budget Due to Lack of Car Subsidies

What's keeping Congress from passing an extension to the federal budget? Democratic protection of automobile subsidies.

false

After midnight last night, the House finally managed to narrowly pass a budget extension bill, but Senate leaders have already rejected it out of hand, since it includes about half the disaster relief they'd like and cuts $1.5 billion from a clean-fuel technology manufacturing program for the auto industry.

The disagreement is strong enough that it threatens to keep Congress in session longer than intended -- likely through the weekend, and possibly even into next week's scheduled recess.

That gives them a week, if necessary, to avert a government shutdown -- the potential consequence of inaction on a bill to extend federal government spending past September 30.

Clean vehicles are great, but if Democrats really want to meet important environmental goals, just imagine how much good they could do by spending that $1.5 billion to implement better bus systems or provide emergency assistance to transit agencies struggling to keep up with higher ridership.

In addition to highlighting how Senate Democrats highly prize car subsidies, this situation also puts in perspective the brewing fight over the FY2012 budget. If Congress can't even pass a simple extension to keep government operations for a few months, with just a few billion dollars' difference, how will they ever agree to bridge the enormous gap between their visions for FY2012?

Meanwhile, Congress is learning, or perhaps not learning, that they can't expect to pass clean extensions at the last minute when they can't agree or aren't ready to take a pass new legislation in time for the old legislation to expire. Extensions are rarely "clean" anymore, and the new items in them are often cause for rancorous debate.

Experts caution against too much hysteria over a possible government shutdown, since every budget vote in recent memory has gone down to the wire, and somehow lawmakers always figure something out, usually without missing any of their recess time. In comparison with some of those epic fights, this skirmish over a few billion dollars seems easily solved.

However, it does remind us of a similar situation earlier this year, when the country found itself on the brink of a shutdown. Streetsblog asked transportation agencies and industry officials what a shutdown would mean for them. AASHTO said states wouldn't be able to get reimbursed for transportation spending, totaling about $100 million a day. An official from Dallas Area Rapid Transit said a shutdown would only present a serious problem if it dragged on for months, but the agency could handle a few weeks without federal reimbursements. Construction industry leaders, already fed up with inaction on Capitol Hill from the two-year delay in passing a new transportation bill, seemed resigned to enduring the problems Washington presents them.

Stay in touch

Sign up for our free newsletter

More from Streetsblog New York City

INTERVIEW: MTA Chair Janno Lieber Talks to Streetsblog to Mark Four Years at the Top

The MTA chairman talked with Streetsblog about his tenure, congestion pricing, bus stops, Babe Ruth and more.

January 21, 2026

OPINION: To Move Past the ‘Agony and Terror’ of the Adams Years, DOT Must Lean Into Research

Ex-Mayor Adams sandbagged DOT's capacity to explain why it pursue street redesigns in the first place, and the ability to inform New Yorkers, in clear and honest terms.

January 21, 2026

Wednesday’s Headlines: Talk is Cheap Edition

We're hawking half-priced tickets to a New York Focus transportation event. Plus other news.

January 21, 2026

F150 Driver Kills Cyclist in Queens

The carnage continues in the World's Borough.

January 20, 2026

Central Park Changes Have Eased Crossings for Pedestrians, New Data Shows

Pedestrians are waiting less time to cross the bustling six-mile loop after the city shortened crossing distances and replaced "stop" lights with yellow "yield" signals.

January 20, 2026

Memo to Mamdani: Rescind Central Park’s New 15-MPH Bike Speed Limit

The lower speed limit misapplies state law and sets a troubling precedent for cycling in New York City.

January 20, 2026
See all posts