US Govt partial shutdown imminent? President elect Donald Trump-backed spending deal fails in House

The US government faces a partial shutdown after a spending bill supported by President-elect Donald Trump failed in the House, leaving critical funding and holiday travel in jeopardy. With bipartisan negotiations collapsing, lawmakers scramble to avert chaos as deadlines loom.

Written By Sayantani
Updated20 Dec 2024, 06:35 AM IST
Donald Trump. The vote concluded with 174-235 against the hastily assembled package, which had been crafted by Republican leaders following Donald Trump's and billionaire Elon Musk's opposition to a previously negotiated bipartisan deal.
Donald Trump. The vote concluded with 174-235 against the hastily assembled package, which had been crafted by Republican leaders following Donald Trump’s and billionaire Elon Musk’s opposition to a previously negotiated bipartisan deal.(Reuters / Brian Snyder)

US Government: A Republican spending bill backed by President-elect Donald Trump was soundly rejected in the US House of Representatives on Thursday, leaving Congress without a clear strategy to avert a looming government shutdown that threatens to disrupt Christmas travel.

The vote concluded with 174-235 against the hastily assembled package, which had been crafted by Republican leaders following Donald Trump's and billionaire Elon Musk's opposition to a previously negotiated bipartisan deal.

Also Read | Trump threatens ‘reciprocal’ tax on India: ‘They’re taxing us, we haven’t…’

Impending US Government Shutdown ?

With US government funding set to expire at midnight on Friday, lawmakers face the urgent task of extending the deadline or risking a partial shutdown.

Such a shutdown would halt funding for various essential services, including border enforcement and national parks, and would affect paychecks for over 2 million federal workers.

The Transportation Security Administration has already warned that holiday travellers could encounter long lines at airports if the shutdown occurs.

Also Read | Trump: Tech CEOs went from ‘fighting me’ to ‘wanting to be my friend’

Donald Trump's Controversial Proposal

Donald Trump's rejected spending bill aimed to extend government funding into March 2025, coinciding with Trump’s return to the White House, and included $100 billion in disaster relief while also suspending the debt ceiling.

The current debt limit expires January 1, 2025, and Trump wants the problem off the table before he joins the White House.

However, it faced significant pushback from both Democrats and members of Trump's own party, with 38 Republicans voting against it alongside nearly all Democrats except three.

Also Read | Trump’s peace proposal: Calls for talks with Putin and Zelenskyy to end war

The new proposed US Govt spending Bill whittled the 1,500-page bill to 116 pages and dropped a number of add-ons — notably the first pay raise for lawmakers in more than a decade, which could have allowed as much as a 3.8% bump.

The slimmed-down package does include federal funds to rebuild Baltimore’s collapsed Key Bridge, but dropped a separate land transfer that could have paved the way for a new Washington Commanders football stadium.

It abandons a long list of other bipartisan bills that had support as lawmakers in both parties try to wrap work for the year. It extends government funds through March 14.

Adding an increase in the debt ceiling to what had been a bipartisan package is a show-stopper for Republicans who want to slash government and routinely vote against more borrowing.

Also Read | Trump isn’t president yet. He’s already spooking the Fed.

Political Fallout and Internal GOP Struggles

House Speaker Mike Johnson expressed determination to regroup before the impending deadline, stating, “We’re going to do the right thing here.” However, Johnson failed to secure even a majority vote for the proposal.

This outcome represents a considerable setback for Donald Trump and Elon Musk, who had publicly denounced Mike Johnson's bipartisan compromise aimed at preventing a US government shutdown.

Democrats have condemned the GOP's retreat from their earlier agreement, with House Democratic Leader Hakeem Jeffries labelling US-President elect Donald Trump’s new proposal “laughable.” He emphasised that Democrats would not support any plan that undermined their previous negotiations.

Also Read | Donald Trump’s bid to toss hush money conviction rejected by judge

Role of Elon Musk

Elon Musk's involvement in this political turmoil has been notable; he leveraged his social media platform X to rally opposition against the spending bill, which he described as “terrible.”

Elon Musk's influence has raised eyebrows among lawmakers, with some even suggesting that SpaceX CEO could take on a more significant role in Congress – like the Speaker.

US Govt Partial Shutdown: Looking Ahead

As Congress navigates this self-imposed crisis just before the holidays, the potential for a government shutdown looms large. If no new funding measures are enacted by midnight on Friday, federal operations will cease until an agreement is reached. This situation serves as a reminder of the chaotic political landscape expected under Donald Trump's leadership as he prepares to take office again amidst ongoing disputes over fiscal policy and governance.

Key Takeaways
  • The failure of the spending bill highlights the ongoing turmoil within the Republican party and the influence of external figures like Trump and Musk.
  • A government shutdown could disrupt essential services and affect millions of federal workers, especially during the holiday season.
  • Bipartisan cooperation remains crucial, yet increasingly rare, in addressing funding and budget issues in Congress.

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First Published:20 Dec 2024, 06:35 AM IST
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