President Obama signs massive spending bill, tax measures into law

Mary Troyan | USA Today

WASHINGTON — President Obama signed a huge tax and spending package into law on Friday following congressional votes that avoided a year-end showdown over the budget and ended legislative business until lawmakers return in 2016.

The Senate's 65-33 vote approved both the $1.1 trillion catch-all spending bill and a $622 billion series of tax breaks. The House earlier passed the two pieces separately by solid majorities — the tax package Thursday and the spending bill Friday morning.

Lawmakers generally viewed the legislation as an imperfect but acceptable compromise between conservative and liberal priorities.

“Congress can now move into 2016 with a fresh start,” House Speaker Paul Ryan, R-Wis., said.

The tax package permanently extends the enhanced child tax credit and earned income tax credit that were boosted by the 2009 economic stimulus, and extends through 2019 a popular corporate tax break that allows companies to more quickly depreciate the value of new equipment.

"This legislation prevents tax increases, creates more job opportunities, and makes it easier for Americans to do their taxes," said House Ways and Means Committee Kevin Brady, R-Texas. "That’s a great gift, an overdue gift, for American taxpayers."

Republicans were less enthusiastic about the 2,000-page government funding measure, which combined separate fiscal 2016 spending bills for every federal agency into one massive bill. GOP lawmakers wanted to add provisions blocking Obama's policies on immigration, wetlands rules, armor-piercing bullets and other issues, but those didn't make the final cut.

The measure does, however, give Republicans a major win by lifting the 40-year ban on crude oil exports.

It also removes the threat of a government shutdown for the rest of the fiscal year.

House Democratic Leader Nancy Pelosi, D-Calif., described the spending bill as a major victory for Democrats but said she "didn't want to advertise it too much" before Friday's votes for fear Republicans would try to change it

Pelosi called the end of the oil export ban "atrocious policy" but applauded the extension of tax credits for solar and wind energy projects.

She said that in exchange for lifting the ban on oil exports, Republicans dropped their demands for defunding Planned Parenthood — a key GOP goal for much of the fall — and for blocking Syrian refugees, rolling back gun rules and other issues.

"I feel almost jubilant about what is in this appropriations bill," she said.

Sen. John Cornyn, R-Texas, offered fainter praise for the deal, calling it "the antithesis of perfect."

“But In the end, nothing passes Congress and gets signed into law by the president without some level of bipartisan cooperation and both chambers of Congress working together with the executive branch," Cornyn said.. "And this legislation does include several wins for the American people.”

Lawmakers seemed motivated to avoid a political meltdown over the fiscal 2016 budget that would further sour the public’s view of Congress.

The tax breaks and spending provisions cover everything government does — and limit how federal money can be spent. For example, the legislation bars Obama from closing the Guantanamo Bay detention facility or spending money on a new facility to house terrorists.

It also bars the U.S. from implementing the United Nations Arms Trade Treaty. But it does not include provisions barring implementation of Obama's plan to defer deportations for children brought to the U.S. illegally and some of their family members.

The legislation bars the government from listing the sage grouse as an endangered species, but it does not include Republican-backed provisions to prohibit the Environmental Protection Agency from regulating air emissions related to global climate change.

It does not prohibit the administration from resettling Syrian refugees in the U.S., as many Republicans and some Democrats had hoped, but it does include new anti-terrorism limits on visitors from 38 countries who can travel to the U.S. without a visa.

There was plenty to irk opponents of the legislation, especially the decision not to allow amendments.

“This is a recipe for corruption,” said Sen. John McCain, R-Ariz. “A handful of people behind closed doors worked and then 48 hours or whatever before the vote, presented it to us as take it or leave it.”

McCain complained that the legislation includes money for ships that the Navy said it doesn't need, and a huge increase in medical research paid for out of Pentagon funds.

“I’m not proud of this. In fact, I’m a bit ashamed,” he said.

Democratic leaders labeled the tax package a gift to powerful special interests that isn't paid for, meaning it will add to the federal debt. But they largely embraced the idea of a government funding bill that lasts more than a few weeks or months.

“No one — as it never happens — is going to get everything they want or prevent everything they oppose from being included,” said House Minority Whip Steny Hoyer, D-Md. “Businesses and workers across our country deserve the certainty that comes from ensuring that our government remains open and serving the American people.”

Contributing: Paul Singer