Washington: On Friday, the Republican-majority U.S. House of Representatives approved a bill that would prevent a midnight government shutdown, bypassing President-elect Donald Trump's demand to also approve trillions in new debt. The legislation must now pass the Democratic-controlled Senate to ensure continued government funding past midnight (0500 GMT Saturday), when the current funding expires. The White House indicated that President Joe Biden plans to sign the bill into law if it clears the Senate.
The measure would extend government funding through March 14, allocate $100 billion for disaster recovery in affected states, and provide $10 billion for farmers. However, it does not address raising the debt ceiling—a major request Trump had made to Congress before he assumes office on January 20.
House Speaker Mike Johnson emphasized that Republicans would have greater influence on government spending next year, when they will control both chambers of Congress and Trump will be in the White House. "This was a necessary step to bridge the gap, to put us into that moment where we can put our fingerprints on the final decisions on spending," Johnson said, adding that Trump supported the measure.
A government shutdown would disrupt a range of services, including law enforcement, national parks, and the paychecks of millions of federal workers. The travel industry warned that it could cost airlines, hotels, and other businesses up to $1 billion weekly and cause major disruptions during the Christmas season, with travelers potentially facing long waits at airports.
The bill passed by a 366-34 bipartisan vote, resembling a plan that had been scrapped earlier this week after heavy criticism from Trump and his advisor, billionaire Elon Musk, who objected to unrelated provisions like a pay raise for lawmakers and measures targeting pharmacy benefit managers. Republicans removed most of these provisions, including one that would have limited investments in China, which Democrats claimed conflicted with Musk's business interests.
Democratic Representative Rosa DeLauro criticized Musk for avoiding questions about his business plans in China. "He clearly does not want to answer questions about how much he plans to expand his businesses in China and how many American technologies he plans to sell," she said.
Musk, who has been tasked by Trump to lead a budget-cutting task force but holds no official position, expressed approval of the revised bill, calling it a major simplification. "It went from a bill that weighed pounds to a bill that weighed ounces," he wrote on his platform, X.
House Democratic Leader Hakeem Jeffries acknowledged that the package still achieved key objectives, such as disaster relief and preventing a shutdown, while blocking Republicans' efforts to raise the debt ceiling, which could facilitate tax cuts. "We have successfully advanced the needs of everyday Americans, but there are still things to be worked on and we look forward to that fight in the new year," he said.
Trump’s push to raise the debt ceiling was overwhelmingly rejected by the House, including 38 Republicans, on Thursday. The U.S. government spent about $6.2 trillion last year and now has over $36 trillion in debt. Congress will need to authorize further borrowing by mid-2024.
Johnson stated that lawmakers would revisit the debt ceiling issue in January. Representative Rich McCormick, one of the 34 Republicans who voted against the bill, argued it would do nothing to curb the nation's growing debt. "We will be the country of the past if we continue doing what we're doing," he said.
The federal government last shut down for 35 days during Trump’s first term due to a dispute over border security. Past debt ceiling standoffs have rattled financial markets, as a default by the U.S. government could trigger global credit crises. The debt ceiling suspension is set to expire on January 1, though lawmakers may not need to act on it until spring.