Republicans' spending bill collapse deals blow to Trump
4 Min Read
On the brink of a shutdown, the US House of Representatives rejects rushed package after Trump and Musk derailed the earlier deal.
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Former US president and Republican presidential candidate Donald Trump speaks during a campaign event in Mint Hill, North Carolina, on September 25, 2024. (AFP)
US President-elect Donald Trump faced a significant setback on Thursday as Republicans in Congress failed to pass a slimmed-down spending bill, just a day before a potential government shutdown that could disrupt holiday travel.
The House of Representatives rejected the Trump-endorsed bill by a vote of 174-235. The package was hastily put together by Republican leaders after Trump and billionaire Elon Musk derailed a prior bipartisan agreement.
Critics labeled the failure as a preview of potential turmoil when Trump assumes office on January 20. Musk’s involvement, marked by a series of tweets on his platform X, was derided by Democrats as the actions of “President Musk.”
House Democratic leader Hakeem Jeffries dismissed the proposal, saying, “The Musk-Johnson proposal is not serious. It’s laughable. Extreme Maga Republicans are driving us to a government shutdown.”
Why it matters
Despite former President Donald Trump’s backing, 38 Republicans joined nearly all Democrats in voting against the new funding package, preventing it from achieving the required two-thirds majority and leaving its future uncertain.
The opposition within Trump’s own party was unexpected for many observers.
The proposed bill aimed to extend government funding until March, aligning with Trump’s anticipated return to the White House and Republican control of Congress. It included $100 billion in disaster relief and a two-year suspension of the debt limit. Concessions were made by removing provisions such as congressional pay raises and new rules for pharmacy benefit managers. Trump also pushed for the suspension of debt limits to facilitate promised tax cuts, which could further increase the federal government’s $36 trillion debt.
Ahead of the vote, both parties warned of dire consequences if Congress allowed a government shutdown. Republican House Speaker Mike Johnson argued the bill would prevent disruption, address outstanding issues, and pave the way for significant spending cuts under Trump’s administration. “Government is too big, it does too many things, and it does few things well,” Johnson said.
Democrats criticized the proposal, calling it a pretext for tax cuts benefiting wealthy individuals like Elon Musk while burdening the nation with additional debt. During the floor debate, Democratic Leader Hakeem Jeffries challenged Republican claims of fiscal responsibility, stating, “How dare you lecture America about fiscal responsibility, ever?” Representative Jamie Raskin added, “So who is our leader Hakeem Jeffries supposed to negotiate with? Is it Mike Johnson? Is he the speaker of the House? Or is it Donald Trump? Or is it Elon Musk? Or is it somebody else?”
Some Republicans also expressed discontent. Congressman Chip Roy remarked, “I am absolutely sickened by the party that campaigns on fiscal responsibility,” criticizing the bill for increasing debt without reducing spending.
Even if the House had passed the measure, it faced steep challenges in the Democrat-controlled Senate. President Joe Biden opposed the bill, with the White House accusing Republicans of prioritizing the interests of billionaires over working Americans.
A flashback
Debt ceiling battles have historically unsettled financial markets, as a default by the U.S. government could have global repercussions. Although an agreement to suspend the debt limit is set to expire on January 1, Congress may not address the issue until spring.
The turmoil also threatens Speaker Johnson’s position, as several Republicans indicated they would not support his leadership when Congress reconvenes in January. Johnson’s reliance on Democratic support for legislative victories has sparked dissatisfaction among his party’s hardliners.
In short, the US government faces a partial shutdown if funding isn’t extended by midnight on Friday, potentially affecting services like border enforcement and national parks and delaying paychecks for over 2 million federal workers. The Transportation Security Administration has warned of lengthy airport lines during the busy holiday season.
