This holiday season could come with the legislative equivalent of getting coal in your stocking – a government shutdown. Already, a bill aimed at avoiding this fate was rejected by lawmakers.
HR 10515 was rejected by all but two Democrats in the House of Representatives, as well as 38 Republicans following criticisms of an initial version of the bill from President-elect Donald Trump and his close ally, tech mogul Elon Musk.
In a Thursday Truth Social post, Trump praised the bill that eventually failed, saying: “Speaker Mike Johnson and the House have come to a very good Deal for the American People. The newly agreed to American Relief Act of 2024 will keep the Government open, fund our Great Farmers and others, and provide relief for those severely impacted by the devastating hurricanes.”
Trump also said that the bill included a “VERY important piece, VITAL to the America First Agenda,” that would have pushed the date of the debt ceiling out two years.
According to CNN, the bill included a measure that allotted $100 billion in disaster relief and help for farmers. It “achieved the unique feat of turning both Democrats and Republicans against it,” said the outlet.
Some Republicans were upset about the debt ceiling extension and others, such as budget hawk Chip Roy (R-Texas), wanted more spending reductions. Meanwhile, Democrats are working to flex power after the bipartisan legislation was changed.
CNN noted that Trump, who will enter the White House bolstered by Republican majorities in the House and Senate, didn’t have to get involved in this last bit of business for the 118th Congress. However, it noted Musk, who the president elect has nominated to run a new ad-hoc committee focused on efficiency, stepped into the fray with a “social media” storm Wednesday.
“Actions matter, sweet talk is irrelevant,” said Musk in one post on X, a site that he owns, regarding the bipartisan spending legislation. “Kill the Bill.”
This triggered criticism of Musk’s involvement, and Rep. Rosa DeLauro (D-Conn.) even referred to the South African entrepreneur as “President Musk” during remarks in the House.
House Speaker Johnson managed to rework the bipartisan legislation into the bill that was ultimately rejected. Like Trump, Musk praised that version of the bill in X posts.
“Shame on [House Minority Leader Hakeem Jeffries (D-N.Y.)] for rejecting a fair & simple spending bill that is desperately needed by states suffering from hurricane damage!” said Musk.
Jeffries, on the other hand, said: “House Republicans have been ordered by right-wing extremists to shut down the government. Who will be hurt? The American people.”
“Johnson’s initial aim was to keep the government open until next year, with a stop gap spending plan – which needed Democratic votes and priorities to pass – to clear the decks for Trump and the new Republican Congress in January,” said CNN. With government funding expected to lapse at midnight, lawmakers scrambled Friday morning to work out a new plan.
CBS News reported that Johnson told reporters at the Capitol he’s “expecting votes this morning, so stay tuned – we’ve got a plan,” and that House Republicans were set to gather on Capitol Hill at 12:30 p.m.
In a Friday morning Truth Social post, Trump continued to advocate for a debt ceiling extension.
“Congress must get rid of, or extend out to, perhaps, 2029, the ridiculous Debt Ceiling. Without this, we should never make a deal. Remember, the pressure is on whoever is President,” he said.
Trump indicated in another Friday morning post that he would be fine with the government shutting down – as long as it happens under current President Joe Biden.
“If there is going to be a shutdown of government, let it begin now, under the Biden Administration, not after January 20th, under “TRUMP.” This is a Biden problem to solve, but if Republicans can help solve it, they will!” he wrote.
CNN said that failure to eventually raise the debt ceiling would send the U.S. into default, which in turn could result in a financial crisis. Political squabbling and fighting right up to deadlines for government shutdowns have actually become quite common in recent years – so common that Fitch Ratings cited the frequent standstills as one of its reasons for downgrading the nation’s credit rating in 2023.
Although Johnson struck a hopeful note with reporters Friday morning, CNN said it would take a “legislative miracle” to avoid a partial shutdown Friday night. It also said that the showdown with Trump, Musk and Congress demonstrates the challenges that the president-elect still faces even though he is entering office in a strong position.
“In some ways, the showdown was set off by the belief among some Republicans that a clear Trump election victory equipped them with unassailable authority to act exactly as they please,” CNN explained. “Trump’s supporters believe that they have a mandate for slashing reductions in government and huge budget cuts, so it’s hardly surprising they’d balk at a multi-billion dollar spending spree.”
Going forward, the outlet said that one solution could be to remove the debt ceiling provision Trump has been rallying for. That solution would be a loss for Trump, however, and might be a risk for Johnson if Republicans believe he is too conciliatory to Democrats.
If lawmakers are not able to prevent the government shutdown, that could mean that federal workers get furloughed and that some essential employees – including military personnel – work without pay.
“In the event of a shutdown, the best scenario for the GOP in the new Congress would be to fold a new funding bill into a budget that would enact large spending cuts demanded by grassroots Republicans and put it on Trump’s desk once he is sworn in as president,” said CNN.