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Tea Party Loses Budget Battle...

"House exhales after passing compromise budget" reports McClatchy: "Conservatives fumed that the plan didn’t take the kind of bold steps to reduce spending and deficits they have long sought. Democrats were not pleased that the package didn’t tackle emergency unemployment benefits, which expire Dec. 28. But momentum for the agreement was too strong."

Boehner takes Tea Party down a notch. AP: "... he renewed his denunciation of groups that try to defeat GOP incumbents they consider too willing to compromise with Democrats. Some Republican loyalists wonder what took so long. The U.S. Chamber of Commerce recently took steps to help mainstream Republicans in party primaries, but Boehner's high-profile outburst will move the effort to the GOP's front burners ... Some Republicans fear an all-out struggle between the establishment and the tea party wings, saying both factions' money and energy are crucial to winning elections. But others say tea party excesses leave little choice."

Politico adds: "For the first time since they took back the House in 2010, a strong majority of Republicans have rejected the political absolutism encouraged by the professional right that mired Congress in gridlock for years and culminated in a government shutdown this fall. Speaker John Boehner could barely contain his glee as he knocked the outsiders for the second time in two days on Thursday afternoon."

Votes in Senate are not in hand. The Hill: "The Senate Democratic leadership is not sure there are enough votes to pass a year-end budget deal next week. Senate Democratic Whip Dick Durbin (D-Ill.) cautioned Thursday that Democrats are not assured of winning over enough Republican votes to pass a budget deal to avoid a government shutdown ... 'We need at least five,' said Durbin ... 'I’m not sure of anything,' he added. 'There are not five Republicans who have announced they’re for it.'"

...But So Do Jobless

"Jobless Fear Looming Cutoff of Benefits" reports NYT: "...the emergency federal unemployment-insurance program ... has provided as many as 73 additional weeks of checks in states with high jobless rates ... that recession-era initiative will expire at the end of the month. About 1.3 million current beneficiaries will lose aid. Also affected are an estimated 1.9 million more who would have been eligible for the program in the first half of 2014 after their state benefits ran out ... Economists estimate that losing the emergency benefits will reduce economic growth by about 0.4 percentage points in the first quarter of next year..."

House adjournment today snuffs out chance to extend benefits before deadline. Bloomberg: "Republicans who control the House refused to keep the aid flowing to the long-term unemployed without agreement on budget cuts elsewhere. Extending the benefits would cost $26 billion over two years..."

Sen. Majority Leader Reid pledges to take up matter in January. The Hill: "'That will be the first item we come to when we come back,' Reid said Thursday. 'That will be our first item of business and of course we’ll try to make it retroactive for the days that we lose.' He expressed confidence of success next year."

Breakfast Sides

SeaTeac, WA $15 minimum wage taken to court. NYT: "Supporters of the measure said they were braced for a loss, and were preparing an emergency appeal to the state’s highest court ... Alaska Airlines and the Washington Restaurant Association are leading the legal challenge, contending that the measure, known as Proposition 1, was too broadly and vaguely written, and that the city has no authority to regulate economic activity at the airport, which is operated by the Port of Seattle."

Another GOP governor accepts Obamacare's Medicaid expansion. W. Post: "Under a compromise with the Department of Health and Human Services, [Iowa] will be allowed to charge premiums to people who earn between 100 percent and 133 percent of the federal poverty line, to pay a modest premium for health coverage ... enrollees have the chance to reduce their payment by taking part in a wellness program ... [Now] 10 Republicans governors have backed the idea of expanding the Medicaid program under the Affordable Care Act."

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