In brief
The US government successfully passed a budget to prevent a shutdown, despite intense political disagreements. The new law, signed by President Biden, does not include a controversial debt ceiling increase pushed by President-elect Trump. This development highlights the ongoing tensions in US politics, foreshadowing future legislative battles.
In a dramatic turn of events, the United States government will not shut down after Congress passed a budget to maintain operations. President Joe Biden signed the spending bill into law early on Saturday following a tense legislative negotiation period, which saw the Senate approving the agreement by an overwhelming 85-11 vote shortly after a midnight deadline. Earlier that day, the House of Representatives had passed the bill with a wide margin of 336-34.The lack of a funding agreement would have pushed millions of federal workers into a state of uncertainty, either facing temporary unpaid leave or laboring without compensation. As it stands, the US government's debt has ballooned to approximately $36 trillion, with interest payments outpacing expenditures on national security.Had a shutdown occurred, it would have resulted in closures or significant reductions in critical public services, including food assistance programs, national parks, and federally funded preschools. Additionally, support for farmers reliant on government aid and individuals recovering from natural disasters would have been greatly limited.A proposed agreement aimed at funding government agencies found itself in turmoil shortly before the vote when President Trump and tech entrepreneur Elon Musk urged Republicans to reject it. This echoed past tensions, as the longest government shutdown in history occurred during Trump’s first presidential term, lasting 35 days in 2019.The newly passed American Relief Act, 2025, is a significantly condensed version of a bill originally spanning 1,547 pages, which Trump and Musk dismissed prior to the negotiations. The current legislation maintains funding levels until March 14. Discussions around lifting the contentious debt ceiling, a key issue for some Democrats and budget-conscious Republicans, have yet to be resolved and are expected to continue in the new legislative session.In highlighting the implications of this budget fight, House Democratic minority leader Hakeem Jeffries remarked on the struggle, noting that attempts to include a debt ceiling suspension were not practical at such a critical juncture. He expressed satisfaction over the bill's passage, referring to it as a success against the "billionaire boys club" pushing for radical cutbacks.The budget deal, while preventing an immediate crisis, eliminated many priorities sought by Democrats including a pay adjustment for lawmakers, healthcare initiatives, and consumer protections against misleading advertising in the hospitality industry. It does, however, entail $100 billion in disaster relief funding for hurricane recovery, alongside $10 billion earmarked for farmer assistance. Full funding for the reconstruction of Baltimore's Francis Scott Key Bridge, which was damaged by a cargo ship, is also included.With Trump poised to take office on January 20, and a Republican majority expected in both chambers of Congress, the recent negotiations signal potential for further political upheavals. House Speaker Mike Johnson has faced scrutiny from within his party amid this legislative rollercoaster, leading some to question his ability to maintain control during upcoming votes.In closing remarks, Speaker Johnson expressed gratitude for the bipartisan cooperation to resolve the budgetary crisis, emphasizing that this accomplishment positions Congress favorably for the forthcoming year. Meanwhile, Musk publicly commended Johnson's efforts, appreciating the substantial reductions made to the proposed bill.
