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Home News Update

US Congress Passes Bill To Avert Government Shutdown

Seun Okewoye by Seun Okewoye
December 21, 2024
Reading Time: 3 mins read
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US Congress Passes Bill To Avert Government Shutdown
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The US Congress narrowly avoided a Christmastime government shutdown early Saturday following weeks of intense negotiations, approving a bill to fund federal agencies through mid-March.

With the midnight deadline already lapsed by minutes, senators bypassed normal procedures to expedite a vote on the package, halting shutdown preparations and ensuring continued pay for over 800,000 federal workers.

“It’s good news that the bipartisan approach in the end prevailed… It’s a good outcome for America and the American people,” said Senate Majority Leader Chuck Schumer during his floor speech.

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While the Democratic-led Senate’s approval was expected, given the party’s pivotal role in assisting the Republican-majority House in passing the bill earlier, concerns lingered that Senate deliberations might stretch into the following week. Such a delay would have resulted in non-essential government operations shutting down, potentially furloughing up to 875,000 workers and requiring another 1.4 million to work without pay.

The annual budget-setting process in Congress is often contentious, as both chambers remain closely divided between Democrats and Republicans. This year, the drama was heightened by an eleventh-hour intervention from President-elect Donald Trump and tech billionaire Elon Musk, his incoming “efficiency czar,” pressuring Republicans to abandon a hard-fought funding agreement with Democrats.

Two compromise attempts failed, leaving Republican House Speaker Mike Johnson scrambling on Friday to find a last-minute solution to keep government operations running.

Had the funding package been rejected, non-essential government functions would have ceased. Essential workers, such as those in law enforcement, would have continued to work but faced delayed paychecks. Many national parks, monuments, and tourist sites—popular holiday destinations—would have shuttered.

Funding Extended with Key Provisions

Lawmakers ultimately averted this holiday-season turmoil by approving funding through March 14, including $110 billion in disaster relief and financial aid for farmers. The package closely mirrored a previous bill that failed on Thursday, albeit without a two-year suspension of the federal borrowing limit demanded by Trump.

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Musk’s significant influence over Republican decision-making—and his perceived sway with Trump—has drawn sharp criticism from Democrats. His vocal opposition to the original funding deal on his social media platform, X, triggered backlash, even from within the Republican Party.

“Last time I checked, Elon Musk doesn’t have a vote in Congress,” remarked Georgia Republican Rich McCormick to CNN. “He’ll put pressure on us to do what he thinks is right for him, but my responsibility is to the 760,000 people who elected me.”

While Trump expressed willingness to allow a government shutdown if his demands were unmet, the successful passage of the funding bill—excluding his priorities—highlighted the limits of his influence over congressional Republicans.

Despite this, Johnson framed the outcome optimistically, stating that the incoming Trump administration would usher in significant changes. “President Trump will return to DC and the White House, and we will have Republican control of the Senate and the House,” Johnson said. “Things are going to be very different around here.”

Seun Okewoye

Seun Okewoye

Seun is a website developer, a financial market analyst, trader and fund manager

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