The Republican-controlled U.S. House of Representatives passed legislation on Friday that would prevent a midnight government shutdown, defying President-elect Donald Trump's demand to also greenlight trillions of dollars in new debt.
The Democratic-controlled Senate must then pass a bill that would fund the U.S. government after midnight, when current funding expires. The White House said that if the Senate approves the bill, President Joe Biden intends to sign it.
The legislation would extend government funding through March 14, provide $100 billion to affected states and $10 billion to farmers. But it would not raise the debt ceiling – something Trump urged Congress to do before he took office on January 20 – a difficult task.
House Speaker Mike Johnson said Republicans will have more power to influence government spending next year when they have majorities in both houses of Congress and Trump is in the White House.
“This was a necessary step to bridge that gap and get us to the moment where we can put our stamp on the final spending decisions,” he told reporters after the vote. He said Trump supported the package.
A government shutdown would disrupt everything from law enforcement to national parks and suspend pay for millions of federal workers. A travel industry trade group warned the outage could cost airlines, hotels and other businesses $1 billion a week and lead to widespread disruptions during the busy holiday season. Authorities have warned that travelers may encounter long queues at airports.
The package, which passed with a bipartisan vote of 366 to 34, was reminiscent of a bipartisan plan that was abandoned earlier this week after an online blitz from Trump and his billionaire adviser Elon Musk, who said it contained too many unrelated provisions. , such as giving lawmakers pay raises and cracking down on pharmacy benefit managers.
Republicans removed most of these elements from the bill – including a provision limiting investment in China, which Democrats said would be contrary to Musk's interests.
“He clearly doesn't want to answer questions about how much he plans to expand his business in China and how much American technology he plans to sell,” Republican Rosa DeLauro said on the House floor.
Musk satisfied with the transaction
Trump has tapped Musk, the world's richest man, to lead the budget cuts task force, but Musk has no official position in Washington.
Musk wrote on his social media platform X that he was happy with the package. “We have gone from a pound note to an ounce note,” he wrote.
House Democratic Leader Hakeem Jeffries said the package still achieves important goals, such as providing disaster aid, preventing shutdowns and preventing Republicans from enacting a debt ceiling increase that would make it easier to cut taxes.
“We have managed to meet the needs of everyday Americans, but there is still work to be done and we look forward to this fight in the new year,” he told reporters.
Trump's demand to raise the debt ceiling was soundly rejected by the House on Thursday – including 38 Republicans.
The federal government spent about $6.2 trillion last year and is more than $36 trillion in debt, and Congress will need to act to authorize continued borrowing through the middle of next year.
Rep. Rich McCormick, one of 34 Republicans who voted against the bill, said it did not change the nation's fiscal path and only increased the debt burden. “We will be a country of the past if we continue to do what we are doing,” he said.
The last time the federal government suspended operations was 35 days during Trump's first term in connection with the dispute over border security.
Previous fights over the debt ceiling have spooked financial markets because a U.S. government default would trigger credit shocks around the world. The cap was suspended under the agreement, which technically expires on Jan. 1, though lawmakers likely wouldn't have to address the issue until spring.