Caravan Magazine

A journal of politics and culture

Governance

US Government Averts Shutdown with Last-Minute Spending Deal

The United States government narrowly avoided a shutdown after Congress passed a last-minute funding bill late Friday, ensuring federal employees receive their paychecks and public services continue uninterrupted.

A shutdown loomed earlier in the week after billionaire Elon Musk criticized a bipartisan spending proposal, complicating efforts to secure a budget agreement. His opposition was echoed by President-elect Donald Trump, who advocated for raising the debt ceiling—an initiative capping the government’s borrowing power.

Trump’s proposal to suspend the debt ceiling for two years failed in a vote on Thursday, putting pressure on Congress to strike a deal before the midnight deadline.

House Speaker Mike Johnson presented a revised plan, excluding Trump’s demand for a debt limit increase. “This is a good outcome for the country,” Johnson said, emphasizing Congress’s commitment to meeting obligations. He also noted that Trump was satisfied with the resolution.

The new plan garnered bipartisan support, passing the Republican-controlled House of Representatives 336-34, and subsequently clearing the Democratic-controlled Senate with an 85-11 vote just 38 minutes after the midnight deadline. Although the deadline was technically missed, shutdown procedures were not invoked.

Musk, who had previously criticized the initial bill for its complexity, expressed satisfaction with the streamlined package. “It went from a bill that weighed pounds to a bill that weighed ounces,” Musk posted on his social media platform, X.

Democrats, however, voiced concerns over the final bill, which removed several provisions they had championed. They accused Republicans of yielding to pressure from Musk, whom they described as an “unelected billionaire.”

What Happens During a Government Shutdown?

A failure to pass a funding bill or extend the deadline would have led to significant disruptions. Essential services such as the FBI, Border Patrol, and Coast Guard would continue operations, but national parks and monuments would close, and many civilian employees in federal agencies, including the Department of Defense, would be furloughed.

Civil court proceedings would pause, and while criminal prosecutions would proceed, audits by the Internal Revenue Service would halt.

This agreement avoids such impacts, maintaining government operations and ensuring stability as the country heads into the holiday season

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