In a dramatic turn of events, the US House of Representatives has passed a budget deal to avoid what would have been the first federal government shutdown since 2019. The deal, which was approved by a vote of 366-34, must still be ratified by the Democratic-controlled Senate before it can be signed into law by President Joe Biden.
Government Shutdown Averted: US House Passes Budget Deal
The Republican-controlled House of Representatives has passed a budget deal to avoid what would have been the first federal government shutdown since 2019. The deal, which was approved by a vote of 366-34, must still be ratified by the Democratic-controlled Senate before it can be signed into law by President Joe Biden.
Negotiations and Compromises
The passage of this budget deal marks the third attempt by lawmakers to reach an agreement this week. Earlier in the week, a deal was negotiated but fell apart after President-elect Donald Trump and tech billionaire Elon Musk urged Republicans to reject it. The current deal strips out a debt-limit provision that Trump had demanded, which was a major sticking point for Democrats and some Republican budget hawks.
Key Provisions of the Deal
The “American Relief Act, 2025” that passed in the House on Friday removes measures sought by Democrats in an earlier version of the bill, including:
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A pay raise for lawmakers since 2009
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Federal funds to rebuild a bridge that collapsed in Baltimore
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Healthcare reforms
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Provisions aimed at preventing hotels and live event venues from deceptive advertising
Republican and Democratic Reactions
A total of 34 Republicans voted against the short-term funding bill, while all Democrats in attendance were in favor. Trump has not yet commented on the vote, but a statement released by the White House praises the deal. Ahead of the vote, Democrats criticized Musk’s involvement in the process, pointing out that he is an unelected billionaire.
Looking Forward
Republicans expressed optimism for a “new era” when Trump takes office and Republicans take control of both chambers of Congress next month. However, the wrangling over budget left Republican House Speaker Mike Johnson bruised amid criticism from members of his own party over his handling of the process.
Impact of a Government Shutdown
A government shutdown would have far-reaching consequences for Americans, including:
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Millions of federal employees going without paycheques
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Limited assistance to aid-reliant farmers and people recovering from natural disasters
The last government shutdown was during Trump’s first term in 2019 after the Republican-controlled House of Representatives failed to come to an agreement on a new spending bill. That shutdown lasted 35 days, making it the longest in US history.
