Congress nears passage of bill averting government shutdown

By David Morgan and Richard Cowan

WASHINGTON (Reuters) - The Congress moved closer on Wednesday to finishing a stop-gap funding bill that would avert a looming federal government shutdown, after Republicans and Democrats agreed to help Flint, Michigan, resolve its drinking water crisis.

The Senate voted 72-26 to adopt the short-term continuing resolution, or CR, that would keep federal agencies operating from Saturday to Dec. 9. The vote sent the measure on to the House of Representatives, which was expected to approve it late on Wednesday.

Besides providing money to keep the government operating, the legislation also contains $1.1 billion to battle the Zika virus that has hit Puerto Rico hard and spread to U.S. states, most notably Florida.

The disease can cause severe birth defects. Funds would be for developing a vaccine and reducing Zika exposure.

The bill also includes $500 million for flood relief in Louisiana and other states.

Without the government funding extension, many U.S. agencies would run out of money when the federal fiscal year ends at midnight on Friday.

In a series of carefully-orchestrated maneuvers, after the Senate approved the temporary funding, the House, by a vote of 399-25 passed a wide-ranging water resources bill containing $170 million to assist Flint.

Democrats have been demanding action on the crisis stemming from dangerous levels of lead in Flint's drinking water all year.

A Senate version of the bill contains $220 million for Flint and other cities with problem water systems.

The two chambers will have to hammer out compromise legislation after the Nov. 8 presidential and congressional elections. Wednesday's flurry of activity in Congress came as lawmakers rushed to recess this week until after the elections.

Conservative groups urged Congress to defeat the funding bill. But with House and Senate members eager to go home to campaign for re-election, the measure appeared headed toward passage.

The White House said that it was disappointed that the temporary funding bill continues a provision barring the Securities and Exchange Commission from taking action to increase transparency in public companies' political spending.

It also expressed disappointment that Congress failed to take steps to ensure that the Export-Import Bank is able to fully operate its loan guarantee programs.

Nevertheless, President Barack Obama is expected to sign the bill into law if Congress sends it to him.

(Reporting by Richard Cowan and David Morgan; Editing by Alan Crosby and Tom Brown)