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US funding plan collapses as Trump makes demands days before shutdown US funding plan collapses as Trump makes demands days before shutdown
(about 1 hour later)
Trump rejects bipartisan plan, causing Congress to spiral as lawmakers try to wrap up for holidays amid Friday deadlineTrump rejects bipartisan plan, causing Congress to spiral as lawmakers try to wrap up for holidays amid Friday deadline
Donald Trump abruptly rejected a bipartisan plan Wednesday to prevent a government shutdown before the Friday deadline, instead telling Mike Johnson, the House speaker, and Republicans to essentially renegotiate.Donald Trump abruptly rejected a bipartisan plan Wednesday to prevent a government shutdown before the Friday deadline, instead telling Mike Johnson, the House speaker, and Republicans to essentially renegotiate.
Federal funding runs out on Friday, so members of Congress are working against the clock before they head home for the holidays to renegotiate a spending bill and avoid a shutdown. The measure rejected Wednesday would have extended funding through 14 March. Federal funding runs out on Friday, so members of Congress are racing against the clock before they leave Washington for the holidays to cobble together a short-term spending bill and avoid a shutdown. The measure rejected Wednesday would have extended funding through 14 March.
Trump’s sudden entrance into the debate and new demands sent Congress spiraling. It left Johnson scrambling late into the night at the Capitol. Trump’s sudden entrance into the debate and new demands sent Congress spiraling. It left Johnson scrambling late into the night at the Capitol.On Thursday morning, Trump told NBC News that Congress should “get rid of” so-called debt ceiling – a limit on what the US treasury can borrow to pay its bills – a proposal that has traditionally won more support from Democrats than Republicans.
“Republicans must GET SMART and TOUGH,” said JD Vance, Trump’s vice-president-elect, in a statement. In an interview with NBC News, Trump said eliminating the debt ceiling was the “smartest thing it [Congress] could do – I would support that entirely”.
The president-elect made an almost unrealistic proposal that combined some continuation of government funds along with a much more controversial provision to raise the nation’s debt limit – something his own party routinely rejects. “Anything else is a betrayal of our country,” they wrote. The idea was quickly shot down by the Democratic House leader, Hakeem Jeffries.
Democrats decried the GOP revolt over the stopgap measure, which would have also provided some $100.4bn in disaster aid to states hammered by Hurricanes Helene and Milton and other natural disasters. “GOP extremists want House Democrats to raise the debt ceiling so that House Republicans can lower the amount of your Social Security check. Hard pass,” Jeffries posted on his Bluesky account on Thursday.
“House Republicans have been ordered to shut down the government and hurt everyday Americans all across this country,” said Hakeem Jeffries, the House Democratic leader. The day before, Trump proposed a stop-gap measure that would combine some continuation of government funds along with a much more controversial provision to raise the nation’s debt limit – something his own party routinely rejects.
Jeffries said “an agreement is an agreement,” and by backing out of it “the House Republicans “will now own any harm that is visited upon the American people”. “Republicans must GET SMART and TOUGH,” said JD Vance, Trump’s vice-president-elect, in a statement. They added: “Anything else is a betrayal of our country,”
Democrats decried the GOP revolt over funding bill, which would have also provided some $100.4bn in disaster aid to states hammered by Hurricanes Helene and Milton and other natural disasters.
“House Republicans have been ordered to shut down the government and hurt everyday Americans all across this country,” Jeffries said in an earlier statement.
“An agreement is an agreement,” the Democratic leader added, arguing that House Republicans “will now own any harm that is visited upon the American people”.
Already, the massive 1,500-page bill was on the verge of collapse, as hard-right conservatives rejected the increased spending. They were egged on by Trump’s billionaire ally Elon Musk, who rejected the plan almost as soon as it was released.Already, the massive 1,500-page bill was on the verge of collapse, as hard-right conservatives rejected the increased spending. They were egged on by Trump’s billionaire ally Elon Musk, who rejected the plan almost as soon as it was released.
Rank-and-file lawmakers complained about the extras, which included their first pay raises in more than a decade – a shock after one of the most unproductive, chaotic sessions in modern times.Rank-and-file lawmakers complained about the extras, which included their first pay raises in more than a decade – a shock after one of the most unproductive, chaotic sessions in modern times.
Even the addition of much-needed disaster aid, some $100.4bn in the aftermath of hurricanes and other natural calamities that ravaged states this year, plus $10bn in economic assistance for farmers failed to win over the budget-slashing GOP. A number of Republicans had been waiting for Trump to signal whether they should vote yes or no.Even the addition of much-needed disaster aid, some $100.4bn in the aftermath of hurricanes and other natural calamities that ravaged states this year, plus $10bn in economic assistance for farmers failed to win over the budget-slashing GOP. A number of Republicans had been waiting for Trump to signal whether they should vote yes or no.
“This should not pass,” Musk posted on his social media site X in the wee hours of Wednesday morning.“This should not pass,” Musk posted on his social media site X in the wee hours of Wednesday morning.
One lawmaker said office phone lines were flooded with calls from constituentsOne lawmaker said office phone lines were flooded with calls from constituents
“My phone was ringing off the hook,” said Andy Barr, a Republican representative from Kentucky. “The people who elected us are listening to Elon Musk.”“My phone was ringing off the hook,” said Andy Barr, a Republican representative from Kentucky. “The people who elected us are listening to Elon Musk.”
The outcome comes as no surprise for Johnson, who, like other Republican House speakers before him, has been unable to persuade his majority to go along with the routine needs of federal government operations, which they would prefer to slash.The outcome comes as no surprise for Johnson, who, like other Republican House speakers before him, has been unable to persuade his majority to go along with the routine needs of federal government operations, which they would prefer to slash.
He met behind closed doors late into the night at the Capitol with GOP lawmakers trying to figure out a way out of the bind. Vance joined them until nearly 10pm, his young son – in pajamas – in tow.He met behind closed doors late into the night at the Capitol with GOP lawmakers trying to figure out a way out of the bind. Vance joined them until nearly 10pm, his young son – in pajamas – in tow.
“We had a productive conversation,” Vance said as he and his son exited the speaker’s office, declining repeated questions about the details.“We had a productive conversation,” Vance said as he and his son exited the speaker’s office, declining repeated questions about the details.
“We’re in the middle of these negotiations, but I think we’ll be able to solve some problems here.”“We’re in the middle of these negotiations, but I think we’ll be able to solve some problems here.”
It all shows just how hard it will be for Republicans next year, as they seize control of the House, Senate and White House, to unify and lead the nation. And it underscores how much Johnson and the GOP leaders must depend on Trump’s blessing to see any legislative package over the finish line.It all shows just how hard it will be for Republicans next year, as they seize control of the House, Senate and White House, to unify and lead the nation. And it underscores how much Johnson and the GOP leaders must depend on Trump’s blessing to see any legislative package over the finish line.
Musk, who is heading a government body that Trump claims he’ll create called the “department of government efficiency”, warned: “Any member of the House or Senate who votes for this outrageous spending bill deserves to be voted out in 2 years!”Musk, who is heading a government body that Trump claims he’ll create called the “department of government efficiency”, warned: “Any member of the House or Senate who votes for this outrageous spending bill deserves to be voted out in 2 years!”
It’s not an idle threat coming from Musk, the world’s richest man, who helped bankroll Trump’s victory and can easily use his America Pac to make or break political careers.It’s not an idle threat coming from Musk, the world’s richest man, who helped bankroll Trump’s victory and can easily use his America Pac to make or break political careers.
Jamie Raskin, a Democratic representative of Maryland, said this is the problem with “an oligarchy – a handful of wealthy people run everything and everyone is supposed to live in fear of them”.Jamie Raskin, a Democratic representative of Maryland, said this is the problem with “an oligarchy – a handful of wealthy people run everything and everyone is supposed to live in fear of them”.
The bipartisan package that Trump rejected extended existing government programs and services at their current operating levels for a few more months, through 14 March 2025.The bipartisan package that Trump rejected extended existing government programs and services at their current operating levels for a few more months, through 14 March 2025.
The stopgap measure is needed because Congress has failed to pass its annual appropriations bills to fund all the various agencies in the federal government, from the Pentagon to health, welfare, transportation and other routine domestic services.The stopgap measure is needed because Congress has failed to pass its annual appropriations bills to fund all the various agencies in the federal government, from the Pentagon to health, welfare, transportation and other routine domestic services.
But the inches-thick bill goes beyond routine funding and tacks on several other measures, including federal funding to rebuild Baltimore’s Francis Scott Key Bridge, which collapsed when struck by a cargo ship. Another provision would transfer the land that is the site of the old RFK Stadium from the federal government to the District of Columbia, which could potentially lead to a new stadium for the NFL’s Washington Commanders.But the inches-thick bill goes beyond routine funding and tacks on several other measures, including federal funding to rebuild Baltimore’s Francis Scott Key Bridge, which collapsed when struck by a cargo ship. Another provision would transfer the land that is the site of the old RFK Stadium from the federal government to the District of Columbia, which could potentially lead to a new stadium for the NFL’s Washington Commanders.
The bill also would have turned off a pay-freeze provision and that could allow a maximum adjustment of 3.8% or $6,600 in 2025, bringing lawmakers’ annual pay to $180,600, according to a Congressional Research Service report. Members of Congress last got a raise in 2009.The bill also would have turned off a pay-freeze provision and that could allow a maximum adjustment of 3.8% or $6,600 in 2025, bringing lawmakers’ annual pay to $180,600, according to a Congressional Research Service report. Members of Congress last got a raise in 2009.