On Friday morning, the House of Representatives voted on a budget for fiscal year 2014. Their budget, however, defunds the Affordable Care Act, or Obamacare as it is commonly known. Senate Majority Leader Harry Reid (D-NV) indicated that bills that defund the Affordable Care Act will either be amended or not voted on at all. President Obama has also indicated that any bill that defunds his signature legislation will not be signed.

The Tea Party faction of the Republican Party is leading the defund movement. They claim they are doing so because Americans do not like or want the law. They also claim that hiring has decreased because of the law and healthcare costs are increasing. The latter, however, is incorrect.

Congress only has until September 30 to pass a budget before the government shuts down, which analysts say would be a blow to the U.S. economy. The Federal Reserve's plan to continue purchasing bonds is a clear indication that the economy is still fragile. After the budget battle, Congress will have to deal with the debt ceiling yet again.

 

Reach Senior Reporter Max Schwartz here; follow him on Twitter here.