Monday, December 23, 2024

Trump-backed deal to avert government shutdown fails in first House vote

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The US Congress has just 24 hours to find a deal to keep the government open after the House voted down a funding bill on Thursday night despite support from Donald Trump, who scuppered a first version of the legislation a day ago.

The 174-235 vote tees up a race by House Republicans to approve the new bill, which would extend government spending to March 14, send billions of dollars to communities devastated by natural disasters and suspend the debt limit for two years — a crucial priority for the president-elect.

Earlier on Thursday, as Speaker Mike Johnson unveiled the latest version of the bill, Trump urged Republicans and Democrats to vote for it. “SUCCESS in Washington!” he posted on his Truth Social platform

Democrats, however, immediately bashed the proposal.

“The Musk-Johnson proposal is not serious,” House Democratic leader Hakeem Jeffries told reporters, referring to Trump’s billionaire adviser Elon Musk. “It’s laughable. Extreme Maga Republicans are driving us to a government shutdown.”

Some Republicans were also opposed, with 38 voting against the measure.

The House and Senate will need to work quickly to approve the bill in order to get it to President Joe Biden for his signature before a Friday night deadline, after which the government will shut down.

Trump sent House Republicans scrambling by rejecting their initial spending bill, negotiated by Johnson, which the president-elect deemed “unacceptable”. The president-elect also made the additional demand that lawmakers include a measure to raise the government’s debt ceiling.

Musk piled pressure on Johnson and Republicans in a series of social media posts on his X platform on Wednesday, criticising the initial 1,500-page bill as “terrible” and bloated with unnecessary spending and other measures.

The legislative crisis has put Johnson’s leadership in doubt, with far-right members such as Marjorie Taylor Greene musing that Musk could replace him as Speaker.

The quip underscored Johnson’s vulnerability. Asked by NBC News on Thursday morning whether he still had confidence in the Speaker, Trump said: “We’ll see.”

The first three-month stop-gap bill had been negotiated between Johnson and Democrats, whose support he will need to pass the bill. It would have averted a government shutdown by maintaining current levels of spending until March 14, when Republicans will have control of Congress after November’s election victory and spent billions of dollars on farmers and disaster relief aid.

It also contained unrelated provisions, including a pay increase for members of Congress, restrictions on technology investment in China and an easier path for the Washington Commanders American football team to move its stadium from Maryland to Washington, DC.

But the initial bill did not touch the debt limit, which was expected to expire in the first several months of Trump’s second term. Trump called it a “Democrat trap” and threatened Republican members that he would field primary challengers against them in the next election if they voted to support a short-term spending measure without raising the debt ceiling.

“There won’t be anything approved unless the debt ceiling is done with,” Trump told ABC News. “If we don’t get it, then we’re going to have a shutdown, but it’ll be a Biden shutdown, because shutdowns only inure to the person who’s president.”

In a sign of the targeted attacks that Trump and Musk have promised against Republicans who disobey their directives, Trump on Thursday singled out conservative House representative Chip Roy, who has consistently sought to cut spending, for criticism.

“Chip Roy is just another ambitious guy, with no talent,” posted Trump on Truth Social. “I hope some talented challengers are getting ready in the Great State of Texas to go after Chip in the Primary. He won’t have a chance!”

Roy responded on X that he would oppose the legislation anyway, nodding to concerns among Republican fiscal hawks. “New bill: $110BB in deficit spending (unpaid for), $4 TRILLION+ debt ceiling increase with $0 in structural reforms for cuts.”

The debt ceiling is a perennial problem for lawmakers, who suspended the cap on borrowing until January 1 in a deal reached last year. To borrow beyond that limit, the Treasury department can use what it calls “extraordinary measures” to cover new expenditures without breaching the cap.

This can buy the government time before having to worry about a potential default — a disastrous outcome for the world’s largest economy and most important financial system.

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