On Friday, the U.S. House of Representatives, dominated by Republicans, passed a bill preventing a government shutdown at midnight, rebuffing a call from President-elect Donald Trump to also approve huge rises in national debt.
The Democratic-controlled Senate must now pass the measure to secure government funding past the cutoff at midnight (0500 GMT Saturday). The White House has stated that President Joe Biden is prepared to sign the legislation into law once it clears the Senate.
The bill would keep the government funded until March 14, allocate $100 billion for states affected by disasters, and provide $10 billion in assistance to farmers. However, it does not address raising the debt ceiling—a contentious issue that Trump has urged Congress to tackle before his inauguration on January 20.
House Speaker Mike Johnson said the step is important because Republicans would control spending decisions next year when they assume majorities in both chambers of Congress, plus the White House under President Trump.
"This was necessary to close the gap to allow us to direct how the final spending decisions were going to be made," Johnson said after the vote. "The president supports it.".
A government shutdown would disrupt everything from law enforcement to national parks and halt pay for millions of federal workers. The travel industry warned such a shutdown could cost businesses, including airlines and hotels, $1 billion weekly and cause severe disruptions during the busy holiday season. Travelers might face long airport lines, authorities cautioned.
The bill, which passed with a bipartisan vote of 366-34, was similar to an earlier bipartisan proposal that was abandoned this week after criticism from Trump and his billionaire adviser Elon Musk. They said it had too many unrelated provisions, including a pay raise for lawmakers and stricter rules for pharmacy benefit managers.
Republicans struck most of these amendments, including one aimed at investments in China—a practice Democrats said conflicted with Musk's business interests.
"He is clearly avoiding questions about how much he intends to expand his ventures in China and the extent of American technologies he plans to export," remarked Democratic Representative Rosa DeLauro during the House debate.
Although Musk is the wealthiest person in the world, to whom Trump has assigned this task of forming a budget-cutting force, he is not an official member in the government. After amendment of the bill, the billionaire was satisfied enough about it on his platform X, saying, "It went from a bill that weighed pounds to one that weighed ounces."
House Democratic Leader Hakeem Jeffries commended the package for meeting critical priorities like disaster relief, preventing a shutdown, and blocking Republicans from moving forward with a debt-ceiling increase that could make it easier to cut taxes.
"We have made meaningful progress for everyday Americans, but much work remains. We eagerly anticipate continuing these efforts in the new year," Jeffries said.
No Debt Ceiling Increase
Trump's bid to raise the debt ceiling was decisively rejected in the House on Thursday, with 38 Republicans voting against it.
The federal government, which spent about $6.2 trillion last year, now carries over $36 trillion in debt. Congress will need to approve additional borrowing by mid-2024. Johnson said lawmakers would revisit the issue in January.
Representative Rich McCormick, among the 34 Republicans to vote against the bill, was harsh in his criticisms. According to him, the bill has done nothing in trying to sort out the country's fiscal issues but contributes to a ballooning national debt. "If we continue on this path, our nation's status as a global leader will fade," he said.
The last government shutdown happened 35 days into a dispute over border security under Trump's term.
Debt ceiling debates previously roiled financial markets as a potential U.S. default would send shockwaves through the global credit system. The debt ceiling is technically suspended until January 1, and lawmakers likely won't have to worry about it until spring.
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