Government shutdown averted: What's next?
Govt shutdown avoided with post-midnight vote
Facing a government shutdown deadline, the Senate rushed through final passage early Saturday of a bipartisan plan that would temporarily fund federal operations and disaster aid, dropping President-elect Donald Trump’s demands for a debt limit increase into the new year. Mark Kifer, Chair and Associate Professor of Political Science and Director of Survey Research Center at High Point University, joined LiveNOW from FOX to discuss.
Congress approved a last-minute bill to temporarily fund the government and billions in disaster and farm aid early Saturday, avoiding a shutdown that would have sent millions of employees — and members of the military — into the holiday season without paychecks.
President Biden signed the bill into law late Saturday morning.
But the chaos that unfolded in Congress this week, largely stoked by President-elect Donald Trump and his billionaire ally Elon Musk, reminded lawmakers of what’s to come in Trump’s second term: Trump's not fearful of shutdowns the way lawmakers are, and Musk is quickly ascending as a political force.
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Elon Musk attends a joint meeting of Congress featuring an address by Prime Minister of Israel Benjamin Netanyahu on July 24, 2024 in Washington, DC. (Photo by Pete Kiehart for The Washington Post via Getty Images)
What does the government funding bill include?
After President Biden signs it into law Saturday, the drastically slimmed-down 118-page package funds the government at current levels through March 14 and adds $100 billion in disaster aid and $10 billion in agricultural assistance to farmers.
RELATED: What happened to bipartisan spending bill meant to avert government shutdown?
It’s essentially the same deal that flopped the night before in a spectacular setback — opposed by most Democrats and some of the most conservative Republicans — minus Trump’s debt ceiling demand.
It's far smaller than the original bipartisan accord Speaker Mike Johnson struck with Democratic and Republican leaders — a 1,500-page bill that Trump and Musk rejected, forcing him to start over. It was stuffed with a long list of other bills — including much-derided pay raises for lawmakers — but also other measures with broad bipartisan support that now have a tougher path to becoming law.
What does the government funding bill not include?
Gone is Trump’s demand to lift the debt ceiling, which GOP leaders told lawmakers would be debated as part of their tax and border packages in the new year. Republicans made a so-called handshake agreement to raise the debt limit at that time while also cutting $2.5 trillion in spending over 10 years.
Will Mike Johnson remain Speaker?
The final product was the third attempt from Johnson, the beleaguered House speaker, to achieve one of the basic requirements of the federal government — keeping it open. And it raised stark questions about whether Johnson will be able to keep his job, in the face of angry GOP colleagues, and work alongside Trump and Musk, who called the legislative plays from afar.
Trump's last-minute demand was almost an impossible ask, and Johnson had almost no choice but to work around his pressure for a debt ceiling increase. The speaker knew there wouldn’t be enough support within the GOP majority to pass any funding package, since many Republican deficit hawks prefer to slash the federal government and certainly wouldn’t allow more debt.
Instead, the Republicans, who will have full control of the White House, House and Senate next year, with big plans for tax cuts and other priorities, are showing they must routinely rely on Democrats for the votes needed to keep up with the routine operations of governing.
"So is this a Republican bill or a Democrat bill?" scoffed Musk on social media ahead of the vote.
The speaker’s election is the first vote of the new Congress, which convenes Jan. 3, and some Trump allies have floated Musk for speaker.
What does this mean for Trump?
Trump tanks House GOP spending deal
President-elect Trump joined Elon Musk in opposing House Speaker Mike Johnson's proposed bill to keep the government funded. Trump released a statement with Vice-president elect J.D. Vance, writing, "Republicans must get smart and tough. If Democrats threaten to shut down the government unless we give them everything they want, then call their bluff."
Trump, who has not yet been sworn into office, is showing the power but also the limits of his sway with Congress, as he intervenes and orchestrates affairs from Mar-a-Lago alongside Musk, who is heading up the new Department of Government Efficiency.
The incoming Trump administration vows to slash the federal budget and fire thousands of employees and is counting on Republicans for a big tax package. And Trump's not fearful of shutdowns the way lawmakers are, having sparked the longest government shutdown in history in his first term at the White House.
More important for the president-elect was his demand for pushing the thorny debt ceiling debate off the table before he returns to the White House. The federal debt limit expires Jan. 1, and Trump doesn't want the first months of his new administration saddled with tough negotiations in Congress to lift the nation's borrowing capacity. Now Johnson will be on the hook to deliver.
Elon Musk’s growing influence
Musk in 'regular contact' with Putin, per report
Elon Musk, the billionaire owner of major government contractor SpaceX and a key ally of Republican presidential nominee Donald Trump, has been in regular contact with Russian President Vladimir Putin for the last two years, The Wall Street Journal reported.
In the first major flex of his influence since Trump was elected, Musk brought to a sudden halt a bipartisan budget proposal by posting constantly on his X megaphone and threatening Republicans with primary challenges.
Musk’s public pressure campaign scrambled Washington, revealing Musk’s ascendance as a political force largely enabled by his great wealth. In addition to owning X, Musk is the CEO of Tesla and Space X.
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Congressional Democrats mocked their GOP counterparts after Musk tanked the spending bill, with several suggesting Trump had been relegated to vice president.
"Welcome to the Elon Musk presidency," Democratic Rep. Robert Garcia of California wrote on X.