In the end, the war was called off on a technicality. As explained in the live thread yesterday, the fact that FEMA had enough funds to make it to the end of the fiscal year – which is Friday – eliminated the need for an emergency funding request.
FEMA would still need money, but that could be handled in Fiscal Year 2012. With additional FY2011 emergency funding no longer necessary, both sides could take something off the table from the continuing resolution – the $1 billion appropriated to replenish FEMA accounts in 2011, and the offset of Advanced Vehicle Technology Manufacturing and Department of Energy loan guarantees.
But make no mistake – this was a victory for Democrats. They preserved a key principle: no disaster relief gets offset. When a hurricane destroys someone’s house, Congress doesn’t have to kneecap someone else’s budget.