Republican leaders in the U.S. Congress have announced a new spending package aimed at preventing a government shutdown, setting the stage for a swift vote. President-elect Donald Trump, who previously rejected a bipartisan version of the deal, praised the new agreement.
Details of the Agreement
“There’s an agreement,” stated Republican Representative Tom Cole, who chairs the committee responsible for overseeing spending, in a conversation with reporters.
The deal, however, has yet to receive feedback from Democrats. The proposal will need to be approved by the Senate, which Democrats control with a 51-49 majority, and signed into law by President Joe Biden to avoid a shutdown beginning on Saturday.
Government Shutdown Consequences
Failure to pass the bill by the deadline would trigger a partial government shutdown, disrupting funding for essential services such as border security and law enforcement. Federal workers, more than 2 million of whom would be affected, could face delayed paychecks. The U.S. Transportation Security Administration also warned that long lines at airports might become an issue for travelers.
Trump has urged lawmakers to quickly approve the package, stressing the importance of resolving fiscal matters before he takes office on January 20.
Government Shutdown: House Vote and Key Provisions
The House of Representatives is set to vote on the bill at 6 p.m. Eastern Time (2300 GMT), according to Representative Anna Paulina Luna.
The package would fund government operations for three months, extending coverage until Trump assumes the presidency and Republicans control both chambers of Congress. It also includes provisions for $100 billion in disaster relief and $10 billion in farm aid, as well as extending critical farm and food aid programs set to expire at the year’s end.
Additionally, the deal would suspend the debt ceiling until January 2027, potentially allowing trillions of dollars to be added to the nation’s $36 trillion federal debt.
Trump’s Stance on the Debt Ceiling
Earlier in the day, Trump reiterated his stance on the debt ceiling, insisting that it should be eliminated altogether. “The debt ceiling should be thrown out entirely,” he stated.
Historically, debates over the debt ceiling have led to instability in financial markets, as a U.S. default could trigger global credit shocks. While the debt ceiling suspension technically expires on January 1, lawmakers are not expected to address the issue until spring.
Trump has also expressed his plan to introduce tax cuts that could decrease revenue by $8 trillion over the next decade, which would exacerbate the national debt without corresponding reductions in spending. Despite this, he has vowed not to cut senior citizens’ retirement and health benefits, which constitute a significant portion of the budget and are projected to increase substantially in the coming years.
Democratic Party Response
House Democratic Leader Hakeem Jeffries responded to the situation earlier, labeling the conversation about the debt ceiling as “premature.” “This is a moment that’s not about the incoming president, it’s not about millionaires and billionaires, it’s about the harm the House Republicans will do to the American people if the government shuts down,” Jeffries remarked during a news conference.
His office did not provide an immediate response to inquiries about the new deal.
Some Republicans have expressed reluctance to suspend the debt ceiling without addressing government spending. “It’s like limiting, you know, increasing your credit card limit, while you don’t do anything to actually constrain spending,” said Representative Chip Roy.
The Fate of Speaker Mike Johnson
The specter of a government shutdown also poses a challenge to House Speaker Mike Johnson. Johnson, who unexpectedly assumed the speaker’s role after a faction of the Republican Party ousted former Speaker Kevin McCarthy, has faced pressure from both sides of the aisle. His leadership could be further threatened if he struggles to secure support from within his own party.
Several Republicans have voiced opposition to Johnson’s leadership, indicating that they will not vote for him when Congress reconvenes in January. This could lead to another leadership battle in the lead-up to Trump’s inauguration.
Representative Marjorie Taylor Greene shared her thoughts on the issue, emphasizing the need for decisive action. “We must stand firm with the American people to stop the madness!! No matter what. Even if we have to elect new leadership,” she stated on social media.
Also Read: What Is The Debt Ceiling And Why Trump Wants Congress To Abolish It
