Divided Congress Faces Fight over Spending The new House Republican majority plans to push for deep cuts in federal spending, forcing a showdown with President Obama and the Democratic-controlled Senate as early as March. The lame-duck Congress in December passed a continuing resolution that freezes most federal programs at 2010 budget levels and freezes pay for federal employees. But that resolution expires March 4, meaning another vote will be needed to keep the government operating for the rest of the fiscal year that began last October. Congress failed to pass any of the fiscal 2011 appropriations bills. Republicans blocked an attempt to fund the government through the end of 2011. Under the continuing resolution, practically all new contract spending is on hold, though existing contracts can be re-competed. Some ongoing programs, such as the Internal Revenue Service’s IT modernization, could be halted. “Nothing good comes from a C.R.,” Sen. Daniel K. Inouye, D-Hawaii, chairman of the Senate Appropriations Committee, said in a floor speech in December. “…This is no way to run a government.” Republicans think something good can come of it: less spending. The new speaker of the House, Ohio Republican John Boehner, has called for rolling back federal spending to 2008 levels, before the economic stimulus and the financial-industry bailout swelled the budget deficit. Some analysts say that would add up to a cut of $100 billion, starting in the second half of the current fiscal year. However, Republican leaders say they will not reduce spending for defense, homeland security or veterans. Analysts say that means other programs would be cut by as much as 20%. Many members of the new Republican majority in the House have enthusiastically taken up the Tea Party movement’s call for a smaller federal government. But Democrats still control the Senate and the White House, creating a recipe for uncertainty.