The Republican-led U.S. House of Representatives passed legislation on Friday to prevent a government shutdown, rejecting President-elect Donald Trump’s demands to include billions of dollars in new funding. The bill, which now heads to the Democratic-controlled Senate, must be approved and signed into law by President Joe Biden before the current funding expires at midnight on Saturday.
The bill passed the House with broad bipartisan support in a 366-34 vote, extending federal funding through March 14. It allocates $100 billion for disaster relief and $10 billion for farmers but excludes controversial provisions, including raising the debt ceiling—a contentious issue Trump has urged Congress to address before his inauguration on January 20.
Without action, a government shutdown could disrupt essential services, from law enforcement to national parks, while halting paychecks for millions of federal workers.
A government shutdown would also have significant economic consequences. A leading travel industry trade group warned that such a scenario could cost airlines, hotels, and other businesses up to $1 billion per week, with widespread disruptions expected during the holiday travel season. Authorities have cautioned that travelers could face long airport lines if federal operations are interrupted.
A bipartisan compromise amid political tensions
The funding package represents a bipartisan attempt to keep the government open, though it faced significant challenges earlier in the week after President-elect Trump and his advisor, billionaire Elon Musk, criticized the initial version of the bill. Both argued that it included too many unrelated provisions.
In response to the backlash, lawmakers removed several contentious items, including a measure limiting certain investments in China, which Democrats claimed could conflict with Musk’s business interests.
“He clearly doesn’t want to answer questions about how he’s expanding operations in China or how much local technology he’s sharing,” said Democratic Representative Rosa DeLauro during the House debate.
Despite his public criticisms, Musk holds no formal role in Washington. Trump, however, has encouraged Musk to lead a working group to address economic challenges, a move that has sparked debate about the billionaire’s influence in policy discussions.
Debt ceiling debate deferred
One of the bill’s most notable omissions is Trump’s request to address the nation’s debt ceiling. The House has previously raised the borrowing limit with bipartisan support, including votes from 38 Republicans. However, the issue remains unresolved, with lawmakers opting to delay the contentious debate until next year.
House Majority Leader Steve Scalise confirmed ongoing communication with Trump but suggested that the new funding deal would move forward regardless of the president-elect’s objections.
The White House has reportedly instructed federal agencies to prepare for a potential shutdown, underscoring the urgency of the situation. The last government shutdown, which lasted 35 days during Trump’s first term, was triggered by a dispute over border security funding.
Economic and financial risks
While the immediate focus is on avoiding a government shutdown, the unresolved debt ceiling issue poses a significant risk to financial markets. Past standoffs over the borrowing limit have rattled global markets, as a default on U.S. government obligations could spark a credit crisis worldwide.
The current debt ceiling suspension technically expires on January 1, but lawmakers are unlikely to address the issue until spring, leaving little time to negotiate a long-term solution.
As Congress races to finalize the funding package, the political and economic stakes remain high. The bipartisan effort to keep the government running provides a temporary reprieve, but the looming debt ceiling battle ensures that fiscal tensions will dominate Washington’s agenda in the months ahead.
