WASHINGTON: The Senate passed a temporary spending bill early Saturday to avoid a government shutdown after missing the midnight deadline. The House approved the bill earlier, after two previous attempts this week failed, including a push from President-elect Donald Trump. President Joe Biden is expected to sign the bill, sending lawmakers home for the holidays.
President-elect Donald Trump expressed disappointment over the exclusion of the debt ceiling from the final spending deal. Although Trump had pushed hard for the inclusion of a debt ceiling hike, it was ultimately omitted. Sources close to Trump revealed that despite his influence over the GOP, some conservative lawmakers would not bend on his request.
Trump, frustrated by the development, recognized that the issue would need to be tackled during his presidency. Those close to Trump warned of the potential backlash if the government shut down before his inauguration. However, after consulting with lawmakers and allies, Trump reluctantly accepted that a government shutdown could not be avoided.
Despite the missed deadline, the Senate approved a slimmed-down, temporary funding plan to prevent a shutdown. The bill is now on President Biden’s desk, and the brief delay beyond midnight is unlikely to have significant effects.
The passage of the funding package occurred after a failed attempt earlier in the week to pass a bipartisan deal. President-elect Trump had opposed the original bipartisan bill, advocating for changes that were eventually not included. After the House failed to pass Trump’s preferred funding package on Thursday, the chamber approved a revised version on Friday evening.
This latest spending bill ensures government operations continue through March 14. This sets up another potential funding showdown early in Trump’s presidency. The new legislation includes crucial funding provisions but will lead to further budgetary debates in the future.
Key provisions in the bill include disaster aid funding and economic relief for farmers, both priorities for many lawmakers. The bill allocates about $100 billion to assist communities recovering from natural disasters that hit the U.S. in 2023 and 2024. Also, $10 billion is designated for farmers facing economic struggles due to high costs and low commodity prices.
Additionally, the bill includes a one-year extension for the farm bill. This sweeping legislation covers agricultural programs and nutrition assistance for Americans. Moreover, the bill secures full funding for the replacement of the Francis Scott Key Bridge in Maryland.
However, the final bill omits a key component that had been part of earlier negotiations—the debt ceiling increase. The GOP-backed bill on Thursday had sought to suspend the debt ceiling until 2027, but this demand was dropped in the final package. This decision moves any debt ceiling discussions to next year, when the issue is expected to resurface.
The debt ceiling is currently set to return on January 2, 2024, after being temporarily suspended by Congress. Lawmakers will likely have until mid-2025 to address the issue and avoid a default. The suspension was initially agreed upon as part of the bipartisan Fiscal Responsibility Act passed in June 2023.
With Republicans controlling Capitol Hill next year, addressing the debt ceiling is expected to complicate their legislative agenda. In addition to the debt ceiling, Republicans must also focus on extending the 2017 Trump tax cuts and addressing other pressing economic concerns.
Republican Senator Mitt Romney voted against the stopgap bill, stating his protest against how the government is run. He criticized the process of managing the government, calling it “absurd” and failing to address long-term issues. Romney, who is retiring and won’t seek reelection, urged for a new generation of leaders to take charge of the nation’s political future.
The Senate’s passage of the funding bill allowed the government to avoid a shutdown, despite missing the Friday deadline. The bill was sent to President Biden, who signed it into law early Saturday morning. This legislation provides government funding through March and includes critical disaster and agricultural relief while leaving debt ceiling discussions for the next Congress.