This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/world-us-canada-16229066
The article has changed 5 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| US Congress strikes deal linking payroll tax to pipeline | US Congress strikes deal linking payroll tax to pipeline |
| (40 minutes later) | |
| US lawmakers have agreed to extend a payroll tax break for two months, after Republicans won their fight to attach a provision on a controversial pipeline. | US lawmakers have agreed to extend a payroll tax break for two months, after Republicans won their fight to attach a provision on a controversial pipeline. |
| A vote is expected on Saturday on the bill, which would force the Obama administration to make a decision on the oil project early next year. | A vote is expected on Saturday on the bill, which would force the Obama administration to make a decision on the oil project early next year. |
| Compromise was reached after the White House backed away from a threat to veto the pipeline clause. | Compromise was reached after the White House backed away from a threat to veto the pipeline clause. |
| Meanwhile, a nearly $1tn (£645bn) spending bill has passed the House. | Meanwhile, a nearly $1tn (£645bn) spending bill has passed the House. |
| The Senate is expected to clear that legislation on Saturday, averting a shutdown of several federal government agencies. | |
| Passage of these two pieces of legislation would end a year of bitter partisan budget battles on Capitol Hill. | Passage of these two pieces of legislation would end a year of bitter partisan budget battles on Capitol Hill. |
| Friday night's deal is not as comprehensive as the one-year payroll tax extension that Democrats had hoped for. The measure is due to expire at the end of the year, affecting the wage packets of 160 million Americans. | Friday night's deal is not as comprehensive as the one-year payroll tax extension that Democrats had hoped for. The measure is due to expire at the end of the year, affecting the wage packets of 160 million Americans. |
| Democratic allies split | Democratic allies split |
| After initial reluctance, Republicans agreed to back the $120bn plan on condition a deal include a decision on the Keystone XL oil pipeline, which would run from Canada to the US Gulf. | |
| President Barack Obama threatened earlier this month to veto any bill linked to that project, but on Friday the White House softened its tone. | |
| Republicans, who hold sway in the House of Representatives, had warned they would not pass any bill from the Democratic-controlled Senate without the pipeline provision. | Republicans, who hold sway in the House of Representatives, had warned they would not pass any bill from the Democratic-controlled Senate without the pipeline provision. |
| Much to conservatives' delight, the row has split two core Democratic blocs - environmentalists, who vehemently oppose Keystone XL; and union leaders, who say it will bring much-needed jobs. | Much to conservatives' delight, the row has split two core Democratic blocs - environmentalists, who vehemently oppose Keystone XL; and union leaders, who say it will bring much-needed jobs. |
| Mr Obama last month delayed a decision on the project until after November 2012's presidential election, prompting Republicans to say he was more concerned with his job than jobs for the American people. | Mr Obama last month delayed a decision on the project until after November 2012's presidential election, prompting Republicans to say he was more concerned with his job than jobs for the American people. |
| The 1,700-mile (2,700-km) pipeline would run from western Canada through Montana, South Dakota, Nebraska, Kansas and Oklahoma to refineries in Texas. | The 1,700-mile (2,700-km) pipeline would run from western Canada through Montana, South Dakota, Nebraska, Kansas and Oklahoma to refineries in Texas. |
| Republicans and Democrats have been arguing over how to pay for the payroll tax cut. | Republicans and Democrats have been arguing over how to pay for the payroll tax cut. |
| Earlier this week, Democrats gave up pushing White House demands for a new surtax on millionaires to offset the cost, in the face of stiff Republican objections. | Earlier this week, Democrats gave up pushing White House demands for a new surtax on millionaires to offset the cost, in the face of stiff Republican objections. |
| The deal reached on Friday night is expected to include a 60-day deadline for a decision on Keystone XL. | |
| The two-month package would also extend the payroll tax break, unemployment benefits and postpone deep cuts in Medicare fees to doctors. | The two-month package would also extend the payroll tax break, unemployment benefits and postpone deep cuts in Medicare fees to doctors. |
| The US Senate was expected to vote on the package on Saturday, and it could go to the House of Representatives on Monday. | The US Senate was expected to vote on the package on Saturday, and it could go to the House of Representatives on Monday. |
| Indiana Republican Richard Lugar crowed that he had helped force President Obama to make a decision on the pipeline. | Indiana Republican Richard Lugar crowed that he had helped force President Obama to make a decision on the pipeline. |
| In a statement, White House communications director Dan Pfeiffer indicated Mr Obama would sign the measure. | |
| But the president would almost certainly deny a permit for the pipeline, unnamed Obama administration officials said hours earlier. | |
| The US state department warned earlier this week that two months would not be enough time to carry out the legally required environmental studies needed to approve the project. | The US state department warned earlier this week that two months would not be enough time to carry out the legally required environmental studies needed to approve the project. |
| Correspondents say the Obama administration can simply deny approval in early 2012 and go back to its original plan of delaying a final decision, pending the study of an alternative route. | Correspondents say the Obama administration can simply deny approval in early 2012 and go back to its original plan of delaying a final decision, pending the study of an alternative route. |