US avoids government shutdown after bill passes Congress

The US Senate voted in favor of a budget deal aimed at averting what would be the first federal government shutdown since 2019, just hours after the Lower House of Representatives approved the same legislation.

The budget deal passed shortly after midnight, with an overwhelming majority of 85-11.

The bill does not include President-elect Donald Trump's demand that lawmakers increase the amount of money the federal government can borrow, showing the limits of his ability to command lawmakers from his own party.

The bill now goes to President Joe Biden to be signed into law.

The Senate voted shortly after 12:30 a.m. (0530 GMT), with most Democrats and Republicans supporting the measure.

Without a funding agreement, millions of federal employees would have found themselves either on temporary leave without pay or working without pay.

A shutdown would close or significantly reduce operations of public services such as parks, food assistance programs and federally funded preschools, and limit aid to aid-dependent farmers and people recovering from natural disasters.

The last government shutdown occurred during Trump's first term in 2019 and lasted 35 days, the longest in U.S. history.

Lawmakers successfully negotiated a deal earlier this week to fund government agencies, but it collapsed after Trump and tech billionaire Elon Musk called on Republicans to reject it.

The 118-page “American Relief Act, 2025” removes a debt ceiling provision that Trump demanded, which was a sticking point for Democrats and some Republican budget hawks in a previous bill.

The deal also removes measures Democrats sought in the first version of the bill, including lawmakers' first pay raise since 2009, federal funds to rebuild a collapsed bridge in Baltimore, health care reforms health and provisions to prevent hotels and live event venues. misleading advertising.

It includes $100 billion (£78 billion) in disaster relief funds to help rebuild after hurricanes and other natural disasters, and allocates $10 billion in aid to farmers.

House Democrats criticized the involvement of Musk, who they say is an unelected billionaire, in the process.

Musk, who Trump has charged with cutting government spending in his incoming administration, had lobbied hard against an earlier version of the bill.

During the debate, Republicans said they looked forward to a “new era,” with Trump taking office on Jan. 20 and controlling both houses of Congress. Currently, the Senate remains under Democratic control.

The wrangling over the budget has left Republican House Speaker Mike Johnson bruised by criticism from members of his own party over his handling of the process.

“We are grateful that everyone came together to do the right thing and, having accomplished this now as the last order of business for the year, we are ready for an important new start in January,” Johnson said to journalists after Friday's vote. .

He also said he spoke to Trump and Musk frequently during the negotiations.

Johnson's remarks came shortly after Musk praised the Louisiana congressman's work on the budget in a post on X, the social media platform he owns.

“The President has done a good job here, given the circumstances,” he said. “It went from a bill that weighed pounds to a bill that weighed ounces.”

The dramatic budget fight served as a preview of the tense legislative fights that could be underway.