Don't look now, but if Congress doesn't reach some sort of an agreement for the next fiscal year's budget, the federal government will run out of money on Oct 1. Although political rhetoric is high, there is little chance of the Democrats going down the Newt Gingrich 1995 path and shutting down the government - primarily because they recognize that Newt's battle with President Bill Clinton was largely seen as a victory for Clinton, making Newt even more demonizable (is that a word?) until his exit from Congress in 1998. So, Democrat leaders are going to propose an interim budget to give them more time to "negotiate" with the White House on spending issues.

The draft resolution, which is still being finalized, is intended to buy as many as six additional weeks for negotiations, though Democrats are pessimistic about their chances of making much progress with Mr. Bush. With the exception of veterans' health care and border-security funds, the White House has signaled little flexibility, and neither House Speaker Nancy Pelosi (D., Calif.) nor Senate Majority Leader Harry Reid (D., Nev.) appears to have much appetite for a protracted fight. "I don't want a headache. I want to try to work this out," Mr. Reid said last week after meeting with White House Budget Director Jim Nussle. At the same time as the standoff over domestic spending, Congress is being asked by Mr. Bush to provide more money to implement his Iraq policy, which the top leaders adamantly oppose.

With President Bush emboldened after his victories in Congress last week, his threats of vetoes are being taken more seriously by the Democrats. The Dems simply don't have enough votes to override any Presidential veto right now, be it on the war or general spending. That's not likely to change over the next six weeks, so look for the Democrats to capitulate on many of the White House's demands in the final budget, especially in matters regarding defense spending and funding the War in Iraq. Harry Reid and Nancy Pelosi believe, rightly so, that giving in on war spending at this precise moment, having lost all anti-war votes so far this fall session, would be the final straw for much of their far-left base. Hence the postponement of the final budget.