The U.S. government has successfully enacted a budget to prevent a shutdown, but the contentious deal does not incorporate President-elect Donald Trump’s request to increase the federal borrowing limit. President Joe Biden signed the spending bill into law early Saturday morning following its passage in the Senate, which voted 85-11 shortly after a midnight deadline. The House of Representatives approved the measure hours earlier by a vote of 336-34.
Without this funding agreement, millions of federal employees would have faced temporary unpaid leave or required to work without pay. The current U.S. government debt stands at approximately $36 trillion, with interest payments now outpacing national security spending. A government shutdown would have severely affected public services, including national parks, food assistance programs, and federally funded preschools, while limiting aid for farmers and disaster recovery efforts.
Negotiations for government funding had initially made progress but deteriorated after Trump and tech billionaire Elon Musk urged Republicans to reject the proposed deal. This comes after the longest shutdown in U.S. history occurred during Trump’s first term in 2019, lasting 35 days.
The American Relief Act of 2025, which was recently passed, is a 118-page document—significantly trimmed from the 1,547-page bill that Trump and Musk opposed. This new legislation will fund the government at current levels until March 14.
While Trump’s request to lift the debt ceiling, a point of contention for Democrats and some budget-conscious Republicans, was not included in the final bill, GOP leaders indicated that it would be discussed in the new year. The contentious negotiations foreshadow potential legislative challenges as Trump prepares to take office next month.
House Democratic minority leader Hakeem Jeffries criticized attempts to add a debt ceiling suspension to the legislation at the last minute but praised the bill’s passage, stating, “House Democrats have successfully stopped the billionaire boys club.” The final deal removed provisions sought by Democrats in earlier versions, such as a long-overdue pay increase for lawmakers and healthcare reforms.
However, the bill does allocate $100 billion for disaster relief to aid hurricane recovery and $10 billion in support for farmers. It also includes federal funding for the rebuilding of Baltimore’s Francis Scott Key Bridge, which collapsed due to a cargo ship collision in March.
Musk, appointed by Trump to lead efforts in cutting government spending, had actively opposed the earlier bill. During the discussions, Republicans expressed enthusiasm for a “new era” as Trump prepares to assume office on January 20, with Republicans controlling both chambers of Congress. As it stands, the Senate remains under Democratic control.
The budget negotiations left House Speaker Mike Johnson facing criticism from within his party, raising concerns about his ability to maintain his position in an upcoming vote on January 3. Following the vote, Johnson expressed gratitude for the unity shown in passing the bill, stating, “We are set up for a big and important new start in January.”
He also noted frequent discussions with both Trump and Musk throughout the negotiation process. Musk praised Johnson’s work on the budget via a post on X, the social media platform he owns, stating, “The Speaker did a good job here, given the circumstances. It went from a bill that weighed pounds to a bill that weighed ounces.”
