President Biden Signs Bill to Avert Government Shutdown, Rejecting Trump’s Debt Demands
TL/DR –
President Joe Biden signed a bill averting a government shutdown, despite tensions with President-elect Donald Trump and Congress. 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 federal debt stands at roughly $36 trillion, and GOP leaders said the debt ceiling would be debated as part of tax and border packages in the new year.
President Biden Signs Bill to Avert Government Shutdown
WASHINGTON (AP) — President Joe Biden signed a bill into law, averting a government shutdown and ending days of upheaval following the refusal of Congress to meet President-elect Donald Trump’s core debt demands. Congress approved a temporary funding plan after the deadline. The government funding deal includes $100 billion in disaster aid and $10 billion for farmer assistance. The final outcome remained uncertain due to Trump’s insistence for an increase in the government’s borrowing limit.
The PBS report covers Trump’s role in the funding battle.
The revised plan was approved 366-34 in the House and passed 85-11 in the Senate after midnight, causing the White House to halt shutdown preparations. “There will be no government shutdown,” said Senate Majority Leader Chuck Schumer, D-N.Y.
House Speaker Mike Johnson, despite facing resistance from his Republican colleagues, managed to secure the approval. He believes the compromise to be “a good outcome for the country”.
Johnson, under pressure from Elon Musk and Trump, faced difficulties in keeping the government open, raising questions about his suitability for the role of Speaker. The House is scheduled to elect the next Speaker when the new Congress convenes on Jan. 3, 2025.
Watch how GOP Rep. Schweikert perceives Musk’s political influence in Washington.
Trump’s debt limit demand placed Johnson in a difficult position. There wasn’t enough support within the Republican majority to pass any funding package because many Republicans prefer to cut the federal government and would not allow more debt.
However, Republicans who will control the White House, House and Senate in the new year, showed they must routinely rely on Democrats for the votes needed to govern. The government’s borrowing costs have increased following the pandemic, causing the federal debt to stand at roughly $36 trillion. The last time lawmakers raised the debt limit was in June 2023. The limit is currently suspended until Jan. 1, 2025.
Trump wanted to avoid raising the limit as it would need to be increased during his presidency. GOP leaders said the debt ceiling would be debated in the new year. Republicans made an agreement to raise the debt limit while also cutting $2.5 trillion in spending over 10 years. However, it’s notably smaller than the original deal struck by Johnson with Democratic and Republican leaders.
Trump, yet to be sworn into office, is showcasing his power and limits with Congress, stirring up affairs from Mar-a-Lago alongside Musk, who is heading up the new Department of Government Efficiency.
Associated Press writers Kevin Freking, Stephen Groves, Mary Clare Jalonick, Darlene Superville and Bill Barrow contributed to this report.
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