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Sunday, December 22, 2024

US Senate Approves Budget Bill, Rejects Trump’s Debt Ceiling Proposal

The US Senate passed a stopgap funding bill late Friday, narrowly avoiding a government shutdown. The measure excluded president-elect Donald Trump’s push to suspend the federal debt ceiling. Passed 38 minutes after the midnight deadline, the bill now awaits President Joe Biden’s signature.

The Senate approved the bill with an 85-11 vote, following a bipartisan 366-34 vote in the House. The legislation maintains federal funding at current levels while adding $100 billion in disaster aid and $10 billion for farmers.

Shutdown Avoided, but Political Tensions Persist

The White House praised the bill, emphasizing its role in preventing a government shutdown just before the holiday season.

Democratic leader Hakeem Jeffries called the bill’s passage “a victory for the American people.” He highlighted that Democrats provided most of the votes to advance the measure, preventing economic harm to working-class Americans.

Without this agreement, thousands of federal employees faced furloughs, and holiday travel would have been severely disrupted. The previous government shutdown, during Trump’s first term in December 2018, lasted 35 days and remains the longest in US history.

However, tensions rose when Trump insisted on including a suspension of the federal debt ceiling. Critics argued this was a tactic to avoid battles over borrowing limits early in his presidency.

Debt Limit Debate Divides Lawmakers

Trump’s demand to suspend the debt ceiling faced backlash from both Democrats and some Republicans. Fiscal conservatives warned it would add trillions to the national debt.

House Speaker Mike Johnson, a Trump ally, introduced a revised funding bill with the debt ceiling suspension. The bill failed by 174-235, dealing a significant blow to Trump’s agenda.

Billionaire Elon Musk, a vocal Trump supporter, added controversy by attacking the original bipartisan bill. Musk falsely claimed it included a 40% pay raise for lawmakers and billions for an NFL stadium.

Musk’s comments deepened Republican divisions, with some jokingly suggesting he replace Johnson as Speaker. Democrats criticized Musk’s influence, accusing him of destabilizing Congress. Despite the controversy, Musk later praised Johnson’s efforts, calling his handling “a good job given the circumstances.”

Republicans Face Future Fiscal Challenges

With the debt ceiling suspension removed, Trump now inherits a politically sensitive issue as he prepares to take office. Johnson described the funding bill as a temporary fix, emphasizing the need for broader fiscal reforms in 2025.

“This is a necessary step to bridge the gap,” Johnson said. He expressed optimism about Republican leadership in the next Congress. However, the week’s events revealed fractures within the GOP, raising concerns about its unity.

As the US navigates unresolved debt ceiling debates and party divisions, European observers view this as a test of American fiscal stability. The coming months will challenge the Republican Party’s ability to deliver cohesive governance.


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