The U.S. Congress passed a spending bill early Saturday morning to prevent a government shutdown, just in time for the busy holiday travel season. The Democratic-controlled Senate voted 85-11 to continue government funding, 38 minutes after the previous funding expired at midnight (0500 GMT Saturday), without invoking shutdown procedures during the interim. The legislation will now be sent to President Joe Biden, who is expected to sign it into law.
The funding package had previously cleared the Republican-controlled House of Representatives with bipartisan support. This late-night vote concluded a hectic week in which President-elect Donald Trump and billionaire Elon Musk disrupted an initial bipartisan agreement, creating chaos in Congress.
The final version of the bill removed several provisions favored by Democrats, who accused Republicans of succumbing to pressure from an unelected billionaire lacking government experience. Additionally, Congress did not act on Trump’s request to raise the debt ceiling before he takes office on January 20, which poses challenges for future borrowing.
The legislative package extends government funding until March 14, providing $100 billion for disaster relief and $10 billion for farm support. Some Republicans opposed the bill over its lack of spending cuts. House Speaker Mike Johnson stated that the party would have more influence next year with majorities in both chambers of Congress and Trump in the White House. He noted Trump’s support for the package as a vital step to bridge the legislative gap.
A government shutdown would have disrupted vital services like law enforcement, national parks, and delayed paychecks for millions of federal employees. A trade group in the travel industry warned that the shutdown could cost airlines, hotels, and various businesses around $1 billion per week and lead to significant disruptions during the crucial Christmas season.
The package resembles a bipartisan proposal that was dismissed earlier in the week due to backlash from Trump and Musk, who deemed it too cluttered with unrelated provisions. Most of those elements were stripped from the final bill, including a provision that would have limited investments in China—a concern for Musk’s interests.
Trump has appointed Musk, the world’s wealthiest person, to lead a budget-cutting task force, although he will not hold an official position in the administration. Musk expressed satisfaction with the revised package, stating on his social media platform X that it had been significantly streamlined.
House Democratic Leader Hakeem Jeffries noted that despite the challenges, his party achieved some goals and prevented Republicans from facilitating a debt-ceiling hike that could ease the path for cutting taxes.
The call to lift the debt ceiling was overwhelmingly rejected by the House on Thursday, with even 38 Republicans voting against it. Johnson mentioned that lawmakers would revisit the issue in January.
Representative Rich McCormick, one of 34 Republicans opposing the funding bill, argued it failed to alter the nation’s fiscal trajectory and would only add to the debt burden. “If we continue as we are, we will become a country of the past,” he asserted.
The federal government last experienced a 35-day shutdown during Trump’s first term due to a border security dispute. Previous conflicts over the debt ceiling have caused tremors in financial markets, as a U.S. default could trigger global credit disruptions. The current debt limit has been suspended under an agreement that technically expires on January 1, but lawmakers may not need to address the issue until spring.
Credit: Reuters
