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US avoids government shutdown after bill passes US avoids government shutdown after days of political turmoil
(about 4 hours later)
Democratic Senate Majority Leader Chuck Schumer gives a thumbs up walking out of the Senate ChamberDemocratic Senate Majority Leader Chuck Schumer gives a thumbs up walking out of the Senate Chamber
The US Senate has voted to pass a budget deal to avert what would be the first federal government shutdown since 2019, only hours after the lower House of Representatives approved the same legislation. The US government has voted to pass a budget to avert shutting itself down, but the bitterly disputed deal doesn't include a call from President-elect Donald Trump to increase the federal borrowing limit.
The budget deal was passed shortly after a midnight deadline with an overwhelming of margin of 85-11. US President Joe Biden signed the spending bill into law on Saturday morning. The Senate passed the agreement shortly after a midnight deadline by 85-11. The House of Representatives approved it hours earlier by 336-34.
The bill does not include a demand from President-elect Donald Trump that lawmakers increase how much money the federal government can borrow, showing the limits of his ability to command lawmakers from his own party.
The bill now goes to President Joe Biden to be signed into law.
The Senate voted shortly after 00:30 (05:30 GMT), with most Democrats and Republicans supporting the measure.
Without a funding deal, millions of federal employees would have ended up either on temporary unpaid leave or left working without pay.Without a funding deal, millions of federal employees would have ended up either on temporary unpaid leave or left working without pay.
A shutdown would close or severely reduce operations for public services like parks, food assistance programmes and federally funded preschools, as well as limit assistance to aid-reliant farmers and people recovering from natural disasters. US government debt stands at about $36 trillion (£29tn), and more money is now being spent just on the interest payments than on US national security.
The last government shutdown was during Trump's first term in 2019 and lasted 35 days - the longest in US history. A shutdown would have closed or severely reduced operations for public services like parks, food assistance programmes and federally-funded preschools, while limiting assistance to aid-reliant farmers and people recovering from natural disasters.
Lawmakers earlier this week had successfully negotiated a deal to fund government agencies but it fell apart after Trump and tech billionaire Elon Musk called on Republicans to reject it. Lawmakers earlier this week successfully negotiated a deal to fund government agencies, but it fell apart after Trump and tech billionaire Elon Musk called on Republicans to reject it.
The 118-page "American Relief Act, 2025" strips out a debt-limit provision that Trump had demanded, which was a sticking point for Democrats and some Republican budget hawks in an earlier draft bill. The last government shutdown was during Trump's first presidential term in 2019 and lasted 35 days - the longest in US history.
The deal also removes measures sought by Democrats in the first version of the bill, including the first pay rise for lawmakers since 2009, federal funds to rebuild a bridge that collapsed in Baltimore, healthcare reforms, and provisions aimed at preventing hotels and live event venues from deceptive advertising. The American Relief Act, 2025 that just passed is 118 pages, stripped down from a 1,547-page bill that Trump and Musk rejected this week. It will fund the US government at current levels until 14 March.
It does include $100bn (£78bn) in disaster relief funds to help with hurricane recovery and other natural disasters, and allocates $10bn in aid to farmers. Trump's call to lift the debt ceiling - which was a sticking point for Democrats and some Republican budget hawks - was not included in the final bill, but Republican leaders said that measure would be debated in the new year.
The dramatic budget fight is a preview of the legislative fights that may lie in store when Trump takes office next month.
"Trying to jam a debt ceiling suspension into the legislation at the 11th hour was not sustainable," House Democratic minority leader Hakeem Jeffries said ahead of the vote.
He later praised the bill's passage, saying: "House Democrats have successfully stopped the billionaire boys club."
Speaker of the House Mike Johnson spoke to the media after the House passed the billSpeaker of the House Mike Johnson spoke to the media after the House passed the bill
Democrats in the House have criticised the involvement of Musk in the process, who they pointed out is an unelected billionaire. The deal removes measures sought by Democrats in the first version of the bill, including the first pay rise for lawmakers since 2009, healthcare reforms, and provisions aimed at preventing hotels and live event venues from deceptive advertising.
Musk, who Trump has tasked with cutting government spending in his future administration, had lobbied heavily against an earlier version of the bill. It does include $100bn (£83bn) in disaster relief funds to help with hurricane recovery and other natural disasters, and allocates $10bn (£8bn) in aid to farmers.
It also includes full federal funding to rebuild Baltimore's Francis Scott Key Bridge, which collapsed when it was struck by a cargo ship in March.
Musk, who Trump has tasked with cutting government spending in his administration, had lobbied heavily against an earlier version of the bill.
During the debate, Republicans said they looked forward to a "new era" with Trump taking office on 20 January and Republicans in control of both chambers of Congress. Currently, the Senate remains under Democratic control.During the debate, Republicans said they looked forward to a "new era" with Trump taking office on 20 January and Republicans in control of both chambers of Congress. Currently, the Senate remains under Democratic control.
The budget wrangling left Republican House Speaker Mike Johnson bruised as he faced criticism from members of his own party over his handling of the process. The budget wrangling left Republican House Speaker Mike Johnson bruised as he faced criticism from members of his own party, raising a question mark over whether he can win a 3 January vote in the chamber to keep his job.
"We are grateful that everyone stood together to do the right thing and having gotten this done now as the last order of business for the year, we are set up for a big and important new start in January," Johnson told reporters after Friday's vote."We are grateful that everyone stood together to do the right thing and having gotten this done now as the last order of business for the year, we are set up for a big and important new start in January," Johnson told reporters after Friday's vote.
He also said that he had spoken frequently to both Trump and Musk during the negotiations.He also said that he had spoken frequently to both Trump and Musk during the negotiations.
Johnson's remarks came shortly after Musk praised the Louisiana congressman's work on the budget in a post on X, the social media platform he owns.Johnson's remarks came shortly after Musk praised the Louisiana congressman's work on the budget in a post on X, the social media platform he owns.
"The Speaker did a good job here, given the circumstances," he posted. "It went from a bill that weighed pounds to a bill that weighed ounces.""The Speaker did a good job here, given the circumstances," he posted. "It went from a bill that weighed pounds to a bill that weighed ounces."
The dramatic budget fight served as a preview of the tense legislative fights that could be in store.