The United States has successfully passed a budget to avert a government shutdown, though the contentious deal does not include a proposal from President-elect Donald Trump to raise the federal borrowing limit. President Joe Biden signed the spending bill into law early on Saturday morning, after the Senate passed the measure by a vote of 85-11, shortly after a midnight deadline. The House of Representatives had approved the bill earlier in the day by a margin of 336-34.
Had the bill failed, millions of federal employees would have faced furloughs or been required to work without pay. The US government’s national debt currently stands at approximately $36 trillion (£29 trillion), with interest payments now surpassing the amount spent on national security. A government shutdown would have significantly disrupted public services, including national parks, food assistance programs, federally funded preschools, and support for disaster recovery efforts. Farmers and individuals affected by natural disasters would also have seen reductions in aid.
Earlier this week, lawmakers managed to negotiate a funding agreement, but it fell apart after Trump and tech mogul Elon Musk urged Republicans to oppose it. The last US government shutdown occurred during Trump’s first term in 2019, lasting 35 days, still the longest shutdown in US history.
The bill that passed, the American Relief Act of 2025, spans 118 pages, a significant reduction from the 1,547-page bill rejected by Trump and Musk. The new agreement will fund the government at current levels until March 14, 2025. Trump’s proposal to increase the debt ceiling, a key sticking point for some Democrats and conservative Republicans, was excluded from the final version, though Republican leaders indicated that it would be revisited in the new year.
This intense budget battle is seen as a preview of the legislative struggles that could unfold when Trump assumes office next month. “Trying to force a debt ceiling suspension into the legislation at the last minute was simply not feasible,” said House Democratic Minority Leader Hakeem Jeffries ahead of the vote. He later hailed the bill’s passage, declaring, “House Democrats have successfully stopped the billionaire boys club.”
The final bill removed several provisions initially pushed by Democrats, including the first pay raise for lawmakers since 2009, healthcare reforms, and measures designed to prevent deceptive advertising practices in the hospitality and live events industries. However, it includes $100 billion in disaster relief to assist hurricane recovery efforts and other natural disasters, along with $10 billion in aid for farmers. Additionally, the bill provides full federal funding for the reconstruction of Baltimore’s Francis Scott Key Bridge, which collapsed after being struck by a cargo ship in March.
Musk, who has been tasked by Trump with cutting government spending, strongly opposed the earlier version of the bill and lobbied against it. During the debate, Republicans expressed optimism about a “new era” under Trump’s leadership, which will begin on January 20, when he takes office. However, the Senate remains under Democratic control, and the budget conflict has raised concerns about the future stability of Republican leadership in Congress.
The budget battle left House Speaker Mike Johnson facing criticism within his party, prompting questions about whether he can retain his position after a vote on January 3. “We are grateful that everyone stood together to do the right thing, and with this done as the last order of business for the year, we are set up for a major and important new beginning in January,” Johnson told reporters after the vote. He also mentioned frequent discussions with Trump and Musk during the negotiations.
Musk expressed his approval of Johnson’s handling of the situation, praising the Speaker for his efforts in a post on X, the social media platform he owns. “The Speaker did a good job here, given the circumstances,” Musk wrote. “It went from a bill that weighed pounds to a bill that weighed ounces.”