The Republican-controlled US House of Representatives passed legislation aimed at preventing a midnight government shutdown, despite President-elect Donald Trump’s call for an accompanying increase in the debt ceiling on Friday.
The bill would move to the Democratic-controlled Senate, where it must be approved to ensure government funding continues past the current expiration deadline of midnight, international media reports said. The White House has indicated that President Joe Biden intends to sign the bill into law if it passes in the Senate.
The proposed legislation would extend government funding until March 14, allocate $100 billion in aid for disaster-affected states, and provide $10 billion for farmers. But it does not include a provision to raise the debt ceiling—a contentious issue that Trump has urged Congress to address before he takes office on January 20.
House Speaker Mike Johnson emphasised that Republicans would wield more influence over government spending next year when they hold majorities in both chambers of Congress and Trump is in the White House. “This was a necessary step to bridge the gap,” he said and added that Trump supported the package.
A government shutdown could disrupt critical services, ranging from law enforcement to national parks, and halt paychecks for millions of federal workers. The travel industry has warned that a shutdown could lead to losses of $1 billion per week for airlines, hotels, and other companies, potentially causing widespread disruptions during the busy Christmas season.
The bipartisan bill passed with a vote of 366 to 34, following the abandonment of an earlier plan that faced backlash from Trump and billionaire adviser Elon Musk.
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Despite the bill’s passage, Trump’s demand for a debt ceiling hike was overwhelmingly rejected by the House, with 38 Republicans also voting against it. The federal government faces over $36 trillion in debt, and Congress will need to authorise additional borrowing by mid-next year.
Representative Rich McCormick, one of the 34 Republicans who opposed the legislation, argued that it does not address the country’s fiscal challenges and would only exacerbate the national debt. “We will be the country of the past if we continue doing what we’re doing,” he stated.
The last government shutdown lasted 35 days during Trump’s first term, stemming from a dispute over border security. Previous negotiations over the debt ceiling have caused instability in financial markets, as a US government default could have widespread repercussions globally. The current debt ceiling suspension agreement expires on January 1, but lawmakers are not expected to tackle the issue until the spring.
