GOP mulls pay-go challenge to Wall Street reform legislation

Senate Republicans are plotting a budget point of order against the
financial reform bill because it no longer complies with pay-as-you-go
rules.

“This issue will undoubtedly be raised,” Sen. Sam Brownback (R-Kan.) told The Hill.

{mosads}The bill at present will come up about $17 billion short of meeting its costs, according to Senate Budget Committee Chairman Kent Conrad (D-N.D.).

The problem is the decision by Banking Committee Chairman Chris Dodd (D-Conn.) and ranking Republican Richard Shelby (Ala.) to eliminate a $50 billion fund to pay for the costs of winding down a failing firm. Industry would pay money into the fund.

Republicans had pushed for the elimination of the fund, arguing that it could have left taxpayers having to cover any costs not covered by the $50 billion fund.

Under pay-go rules, spending increases in legislation must be offset by either tax increases or other spending cuts.

A Conrad staffer said the bill may not violate rules because previously adopted legislation has generated savings, which could fill the $17 billion hole.

Sen. Ben Nelson (Neb.), the only Democrat to vote against opening a debate on the legislation, said it should meet pay-go rules.

“It should be pay-go’d, and now that this issue has come up I’ll be interested in how it is handled,” he said.

“I hope we will look very hard to find a way to pay for it,” said Sen. Blanche Lincoln (D-Ark.), a chief architect of the derivatives portion of the bill.