
The United States government is within days of running out of money as Congress struggles to come up with a short-term funding plan.
A revised Republican spending plan that would avert a government shutdown failed to clear the House on Thursday night.
it needed a two-thirds majority in the House of Representatives to pass and failed to meet that requirement. Thirty-eight Republicans broke ranks and voted against the bill, along with most Democrats.
President-elect Donald Trump scuttled a previous funding deal that Republican House Speaker Mike Johnson had struck with Democrats.
Trump's condemnation of the bipartisan deal followed heavy criticism of the measure from tech billionaire Elon Musk.
The Trump-approved replacement bill would have tied government funding to a two-year freeze on the federal debt limit, which determines how much the government can borrow to pay its bills. House Minority Leader Hakeem Jeffries, the top Democrat in the chamber, called the proposal “ridiculous.”
Speaker Johnson must now go back to the drawing board with only hours left on the clock.
Here are five things to know about the possible government shutdown:
1. How we got here
The looming government shutdown can be traced back to September, when another budget deadline loomed.
Johnson failed to pass a six-month funding extension. Most Democrats voted against the extension, which included a measure (the SAVE Act) to require proof of citizenship to vote.
Instead, Congress reached a bipartisan deal on a stripped-down bill that would keep the government funded until Dec. 20.
Johnson then promised his Republican conference in December, when the funding was set to expire, that they would not have to vote on a spending bill for everything but the kitchen sink before the holiday break.
But when congressional leaders released the text of the latest spending bill on Tuesday, three days before lawmakers adjourned for the holidays, it totaled 1,547 pages.
The bill would extend government funding until March 14 – nearly three months after Trump is due to return to the White House.
It includes more than $110bn (£88bn) in emergency disaster relief and $30bn in aid to farmers; the first salary increase for MPs since 2009. this way; federal funds to rebuild a bridge that collapsed in Baltimore; health care reforms; and regulations aimed at preventing fraudulent advertising of hotels and live event venues.
Some Republicans criticized Johnson for abandoning the bill for more essential spending, particularly condemning the left-leaning provisions that were negotiated to gain support from Democrats.
Johnson defended the deal, blaming “acts of God” for the need for some of the added provisions, such as disaster relief and farm assistance.
2. Trump's bipartisan plan, Musk tank
Still, opposition to Johnson's spending deal grew Wednesday.
Musk, whom Trump has tasked with identifying spending cuts by co-leading the Department of Government Efficiency (which is not an official government department), lobbied hard against the existing deal with dozens of X posts.
He called it “criminal” and often referred to false claims about the bill in his posts.
Musk wrote to X that any lawmaker “who votes for this outrageous spending bill deserves to be removed in 2 years.”
After Musk sparked opposition to the spending bill, Trump and J.D. Vance, the incoming vice president, delivered the final blow to Johnson's deal that evening.
They said in a joint statement that they wanted streamlined legislation without the Democratic-backed provisions that Johnson had included.
They also urged Congress to raise or eliminate the debt ceiling, which determines how much the government can borrow to pay its bills, and to limit funding legislation to temporary spending and disaster relief.
Everything else they called “treason to our country”.
3. What happens next
Johnson and House Republicans introduced the streamlined legislation Thursday, which then failed in a vote that evening. It is not clear what they will do next.
Lawmakers are not expected to vote again Thursday, meaning they will return Friday morning with less than 24 hours on the clock until a potential shutdown.
But it is clear that the partisan blame game is in full swing. After the bill was defeated Thursday, Johnson told reporters it was “very disappointing” that nearly every Democrat in the House voted against it.
“I think it's really irresponsible for us to risk stalling these issues on things that they've already agreed to,” he said.
Johnson will likely need Democratic support, especially as divisions within his own party over the bill became clear this week.
But Democrats are unlikely to help Johnson with support for a revised funding bill, accusing him of violating their bipartisan agreement.
“You break the bipartisan agreement, you suffer the consequences that follow,” Democratic House Minority Leader Hakeem Jeffries posted on X, which is owned by Musk.
And others seemed to mock the Republicans for appearing to take their direction from the unelected Mr. Musk.
On the floor Thursday, Connecticut Rep. Rosa DeLauro — the top Democratic appropriator in the House — called the billionaire “President Musk,” prompting laughter from fellow Democrats.
“President Musk said 'don't do it, shut down the government,'” she said.
Still, Johnson must find a way to win over Democrats to pass the spending bill, especially as pent-up anger in his own faction is poised to boil over.
Timing is also of the essence. These negotiations usually take weeks.
4. The effects of the government shutdown
Federal agencies rely on annual funding to operate. When Congress fails to pass the 12 spending bills that make up the spending budget, these agencies must wind down non-essential functions.
Essential services – such as border protection, hospital medical care, law enforcement and air traffic control – continue to operate.
But many federal employees may go without pay.
While Social Security and Medicare checks are being mailed, benefit verification and card issuance stops. Funding for the Supplemental Nutrition Assistance Program is mandatory, but food stamp benefits may be affected by a shutdown. This may delay such assistance programs.
Other agencies are shutting down entirely.
The Food and Drug Administration suspends food safety inspections, the Environmental Protection Agency suspends inspections, and national parks close to visitors.
5. The implications for Republicans
It was the first major test of Trump's influence over incumbent Republicans in Congress, and Thursday's vote saw a number of them opt out.
It also presents a challenge for Speaker Johnson, as the House is scheduled to vote in just 15 days on who will be Speaker of the House for the next Congress.
What once looked like a secure position for Johnson doesn't seem so secure now.
Facing backlash from Mr Trump and Mr Musk, the Louisiana Republican is now under scrutiny from members of his own party over his handling of government funding.
Several Republicans have indicated they will not vote for Johnson to lead the chamber. He cannot afford to lose the support of many Republicans, given that the party has a fragile majority of just five seats in the next Congress.
The threat to Johnson is serious given recent Republican history.
In January 2023 California Republican Kevin McCarthy went through 15 rounds of voting before winning the chairmanship.
Just 10 months later, he was ousted by Republicans who accused him of failing to cut spending and working with Democrats to prevent a government shutdown.