With Congress in pseudo recess this week, no action is expected in either chamber. So, let’s take a look at what to expect once the senators and representatives return from Thanksgiving break on December 3.

The House failed last week to override President Bush’s veto of the Labor-HHS-Education appropriation bill [3], leaving the Defense bill [4] the only measure approved by both Congress and the White House. While congressional Democrats have made overtures of compromise to the White House on domestic spending, they are preparing an omnibus spending package containing the remaining 11 spending bills [5] not already enacted.

House Appropriations Chairman David Obey gave hints about the package last week. It would fund programs at a rate of $11 billion over the president’s proposal. That’s down from earlier proposals of a $22 billion increase, but Bush has threatened to veto the omnibus package anyway.

Republican Sen. Jon Kyl suggested combining the package with additional funding for the Iraq War. Senate Majority Leader Harry Reid balked at the idea, and said Democrats will again bring a vote on a $50 billion package for the Iraq War that ties funding to a timeline for troop withdrawal. A similar bill, the Orderly and Responsible Iraq Redeployment Appropriations Act [6], was approved by the House last week, but was seven votes shy of the 60 needed to override a filibuster in the Senate. Republicans denounced the timeline, leading them to introduce their own bill ($70 billion in funding with no strings attached), which also failed.

With a deal on domestic spending unlikely, Democrats may try to paint Republicans as unwilling to pay for popular programs like home-heating assistance, while the GOP will counter by accusing the majority party as soft on fiscal responsibility.

There are no committee schedules this week, but check back next Monday for our full outlook.