The Republican-controlled U.S. House of Representatives passed a bill on Friday aimed at preventing a midnight government shutdown, defying U.S. President-elect Donald Trump’s calls to also greenlight trillions of dollars in new debt.
The House of Representatives voted 366-34 to approve the bill the next day Rejection of Trump’s demand for a debt ceiling.
The Democratic-controlled Senate must also pass the bill in order to submit it to US President Joe Biden. The White House said he would enact it to ensure the U.S. government is funded beyond midnight when current funding runs out.
The bill would extend federal funding through March 14, provide $100 billion for disaster-hit states and $10 billion for farmers. However, the debt ceiling would not be raised – a difficult task that Trump imposed on Congress before he took office on January 20.
A government shutdown would disrupt everything from law enforcement to national parks and pause paychecks for millions of federal workers. A travel industry trade group warned that a shutdown could cost airlines, hotels and other businesses $1 billion a week and cause widespread disruption during the busy holiday season. Authorities warned that travelers could expect long lines at airports.
The package was similar to a bipartisan plan that was abandoned earlier this week after Trump and his billionaire adviser Elon Musk criticized online that it contained too many independent provisions. Most of those elements were removed from the bill – including a provision limiting investments in China, which Democrats said would conflict with Musk’s interests there.
“He obviously doesn’t want to answer questions about how much he wants to expand his business in China and how much American technology he wants to sell,” said Democratic Representative Rosa DeLauro in the House of Representatives.
Musk, the world’s richest person, was tapped by Trump to lead a task force on budget cuts but does not hold an official position in Washington.
The bill also omitted Trump’s call to raise the country’s debt ceiling, which was soundly rejected by the House of Representatives – including 38 Republicans – on Thursday.
The federal government spent about $6.2 trillion last year and has more than $36 trillion in debt. Congress must take action to authorize more loans by the middle of next year.
Rep. Steve Scalise, the No. 2 Republican in the House, said lawmakers had been in touch with Trump but did not say whether he supported the new plan.
Sources said the White House has alerted government agencies to prepare for an impending shutdown. The federal government recently closed for 35 days during Trump’s first term in the White House because of a dispute over border security.
Previous disputes over the debt ceiling have unsettled financial markets as a U.S. government default would trigger credit shocks around the world. The limit was suspended under an agreement that technically expires Jan. 1, although lawmakers likely wouldn’t have had to address the issue until the spring.
