The Republican-controlled US House of Representatives on Friday approved legislation that would avoid a midnight government shutdown, in defiance of President-elect Donald Trump’s demand to also give the green light to trillions of dollars in new debt.
Next, the Democratic-controlled Senate must pass the bill to ensure funding for the US government after midnight, when current funding expires. The White House said that if the Senate approves it, President Joe Biden intends to sign it into law.
The legislation would extend state funding through March 14, providing $100 billion to disaster-hit states and $10 billion to farmers. However, it will not raise the debt ceiling — a difficult task that Trump pushed Congress to do before taking office on January 20.
House Speaker Mike Johnson said Republicans will have more power to influence government spending next year, when they will hold a majority in both chambers of Congress and Trump will be in the White House.
“This was a necessary step to bridge the gap, putting us in that moment where we can put our stamp on the final decisions on spending,” he told reporters after the vote. He said Trump supports the package.
A government shutdown would disrupt everything from law enforcement to national parks and suspend the pay of millions of federal employees. A travel industry trade group has warned that the closure could cost airlines, hotels and other businesses US$1 billion per week and lead to widespread disruptions during the busy Christmas season. Authorities have warned that travelers may face long queues at airports.
The package, approved by a bipartisan 366-34 vote, resembles a bipartisan plan that was abandoned earlier this week after a barrage of online attacks from Trump and his billionaire adviser Elon Musk, who said it contained too many unsavory provisions. Related, such as wages. Lift up for legislators and crack down on pharmacy benefits managers.
Republicans deleted most of these elements from the bill, including a provision limiting investments in China, which Democrats said would have conflicted with Musk’s interests.
“It is clear that he does not want to answer questions about the extent of his plans to expand his business in China and how many American technologies he intends to sell,” Democratic Representative Rosa DeLauro said on the House floor.
Musk is happy with the deal
Trump assigned Musk, the richest person in the world, to head a task force to reduce the budget, but Musk does not hold any official position in Washington.
Musk wrote on his social media platform X that he is happy with the package. “I went from a pound note to an ounce note,” he posted.
House Democratic Leader Hakeem Jeffries said the package still achieves important goals, such as providing disaster aid, avoiding a shutdown and preventing Republicans from enacting a debt ceiling hike that would make it easier to cut taxes.
“We have succeeded in meeting the needs of ordinary Americans, but there are still things to work on, and we look forward to that fight in the new year,” he told reporters.
Trump’s request to increase the debt ceiling was met with a resounding rejection by the House of Representatives – including 38 Republicans – on Thursday.
The federal government spent nearly $6.2 trillion last year and has more than $36 trillion in debt, and Congress will need to act to authorize more borrowing by the middle of next year.
Rep. Rich McCormick, one of 34 Republicans who voted against the bill, said it did nothing to change the country’s fiscal trajectory and would only increase the debt burden. “We will be the state of the past if we continue doing what we are doing,” he said.
The federal government was last shut down for 35 days During Trump’s first term Because of a dispute over border security.
Previous battles over the debt ceiling have spooked financial markets, as a US government default would send credit shocks around the world. That limit has been suspended under an agreement that technically expires on Jan. 1, though lawmakers likely won’t have to address the issue before the spring.
https://i.cbc.ca/1.7417009.1734734354!/fileImage/httpImage/image.jpg_gen/derivatives/16x9_1180/view-of-the-u-s-capitol-building-from-afar.jpg?im=Resize%3D620
Source link