The US government successfully dodged a shutdown after Congress passed a spending bill that maintains funding at current levels until March 14. Despite pushback from Trump and Musk, the deal includes significant disaster relief and food assistance, while omitting contentious debt ceiling increases.
US Government Staves Off Shutdown with Last-Minute Spending Bill
US Government Staves Off Shutdown with Last-Minute Spending Bill
After intense negotiations and political maneuvering, President Biden has signed a spending bill, avoiding a government shutdown, but key demands from Trump and Musk were excluded.
The US government has successfully avoided a shutdown by passing a critical spending bill after extended negotiations that highlighted divisions within Congress. On Saturday morning, President Joe Biden signed into law a budget deal that will fund the government through March 14, allowing various federal operations to continue without interruption.
The Senate approved the spending agreement shortly after a midnight deadline with a decisive vote of 85-11, following the House of Representatives' earlier support at 336-34. A government shutdown would have led to numerous federal employees facing unpaid leave or working without compensation, affecting millions of Americans relying on government services.
Despite the bill’s passage, the agreement does not respond to President-elect Donald Trump’s calls to raise the federal borrowing limit, with government debt standing at an alarming $36 trillion. In contrast, interest payments on this debt now surpass spending on national security.
This budget deal, formally known as the American Relief Act, 2025, is considerably shortened from an original proposal that was faced with opposition from Trump and tech billionaire Elon Musk, both of whom urged Republicans to reject it. The last notable shutdown occurred during Trump's presidency in 2019, lasting a record 35 days.
The agreement includes $100 billion earmarked for disaster relief to assist with recovery from hurricanes and natural disasters, as well as $10 billion in support for struggling farmers. It also allocates resources for the reconstruction of Baltimore's Francis Scott Key Bridge, which collapsed earlier this year.
The final version of the bill is a significant reduction from a more extensive 1,547-page proposal that faced challenges from some lawmakers. Importantly, issues such as a pay increase for lawmakers and healthcare reforms sought by Democrats were removed from the negotiation process.
Democratic House Minority Leader Hakeem Jeffries commended the bill’s enactment, stating, “House Democrats have successfully stopped the billionaire boys club,” in reference to Trump and Musk's influence on the negotiations.
Meanwhile, House Speaker Mike Johnson faced internal party criticism throughout the budget debates, casting uncertainty over his future following the pending vote to retain his position. He indicated eagerness for a fresh start in January, when Trump assumes office.
In a notable gesture, Musk praised Johnson’s efforts in a post on the platform he owns, emphasizing the reduced size of the budget bill as an achievement. It appears that the fiscal impasses are merely a precursor to much larger legislative challenges anticipated in the upcoming year, aligning with Trump's return to the political forefront.
