Biden Signs Legislation to Avert Government Shutdown and Provide $110 Billion Aid
TL/DR –
President Joe Biden signed a legislation to avert a government shutdown, after Congress passed a bipartisan budget plan. The deal funds the government at current levels through March 14 and provides $100 billion in disaster aid and $10 billion in agricultural assistance to farmers. The demand from Donald Trump for an increase in the government’s borrowing limit was rejected, and the final plan was approved 366-34 by the House and 85-11 by the Senate.
Biden Signs Legislation Preventing Government Shutdown
President Biden signed a legislation on Christmas to prevent a government shutdown in Washington. The legislation was passed after Congress approved a bipartisan budget plan, fending off a core demand by Donald Trump.
The approved deal funds the federal government at existing levels till March 14, along with providing $100 billion in disaster aid and $10 billion in agricultural support for farmers. All Alabama representatives and senators voted in favor.
House Speaker Mike Johnson, R-La., assured federal operations won’t close. Despite Trump’s insistence on increasing the government’s borrowing limit, a revised plan was passed by the House 366-34 and by the Senate with an 85-11 vote, ending the shutdown preparations.
Senate Majority Leader Chuck Schumer, D-N.Y., confirmed no government shutdown would occur. Mike Johnson called the compromise beneficial for the country, with the president-elect expressing satisfaction over the outcome.
However, this represents Johnson’s third attempt to keep the federal government open, raising questions about his future role amidst disagreements with Republican colleagues, Trump, and billionaire ally Elon Musk.
Johnson faces a critical challenge on Jan. 3, 2025, when the new Congress convenes with a narrow Republican majority of 220-215 to elect the House Speaker.
Unhappiness with Johnson among Republicans is evident, with criticisms around deficit spending in the bill. Trump’s demand to increase the debt limit put immense pressure on Johnson, due to lack of support within the Republican majority.
The federal debt stands at roughly $36 trillion, with debt service exceeding national security spending due to the increased borrowing cost after the COVID-19 pandemic. The last debt limit increase was in June 2023, suspended through Jan. 1, 2025.
The Treasury Department can use “extraordinary measures” to avoid a debt default until summer 2025. GOP leaders plan to debate the debt ceiling as part of tax and border packages in the new year, with an agreement to raise the debt limit and cut $2.5 trillion in spending over a decade.
A similar faulty deal was rejected by Trump and Musk, resulting in a revised plan with smaller provisions. Trump’s influence on Congress is evident as he manages affairs with Musk from Mar-a-Lago.
Contributors: Kevin Freking, Stephen Groves, Mary Clare Jalonick, Darlene Superville, Bill Barrow (Associated Press)
—
Read More US Political News