Obama Signs Continuing Resolution, Extends GSE and FHA Loan Limits for 2011

President Obama signed legislation last week on Wednesday to fund the federal government through March 4th.

A budget resolution known as a Continuing Resolution (CR) was forced by Senate Republicans who want to start enacting campaign promises to slash the federal budget in fiscal 2011, rather than wait until fiscal 2012. Next year, Republicans will control the House and have increased numbers in the Senate.

Democrats had sought to pass an omnibus measure – made up of all 12 annual appropriations bills – but Republicans killed the proposal after pulling back initial support for it. The move required Democrats to move the CR to stave off a government shutdown.

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Funding for most programs will continue at fiscal 2010 enacted levels and extend the current GSE, FHA, and HECM reverse mortgages loan limits for high cost areas through FY 2011, according to the Senate Appropriations Committee.  In total, the measure would provide funding at a rate approximately $1.16 billion over the previous year’s level.

The CR also extends authorizations or allows for continuous normal operations through March 4 for certain programs that would otherwise expire or be severely disrupted.