US avoids shutdown with last-minute funding bill

Both houses of US Congress passed a three-month funding bill  that will avert a government shutdown that would have disrupted everything from law enforcement to national parks.

The Democratic-controlled Senate, in an 85-11 vote, passed the bill to continue funding the US government 38 minutes after it lapsed at midnight local time (0500 UTC/GMT). 

Earlier Friday night, with a 366-34 vote, the House approved the last-minute plan from House Speaker Mike Johnson that will now keep federal operations and disaster aid temporarily funded.

The passing provided immediate relief for about 800,000 federal workers who were at risk of being sent home for the Christmas holidays without pay.

Johnson had said Congress would "meet our obligations" and not allow federal operations to cease ahead of the winter holidays.

Democratic Majority Leader Chuck Schumer told the Senate that it was "good news that the bipartisan approach in the end prevailed ... It's a good outcome for America and the American people."

Week of tense negotiations

The late-night vote followed a frantic week that saw President-elect Donald Trump and tech billionaire Elon Musk — who is set to be Trump's efficiency czar — defeat an initial bipartisan deal, which threw Congress into disarray.

That sparked two alternative slimmed-down bills, which failed to pass. Following the criticism from his own party, Republican House Speaker Mike Johnson was forced to spend much of Friday trying to find a last-ditch agreement that would keep government agencies running.

There had been uncertainty about the outcome after Trump pushed his demand for the inclusion of a rise in the debt ceiling in the deal. If not, he posted early Friday, let the closures "start now."

However, Trump's final demand wasn't included in the final legislation. It was reduced from the original 1,500-page bill that had included much-derided pay hikes for lawmakers, among other promises.

The White House said President Joe Biden intended to sign the bill into law.

Funding includes storm relief

The legislation extends government funding till March 14 and provides $100 billion (€960 million) for disaster-hit states and $10 billion for farmers.

The bill also extends agricultural and food aid programs that were due to expire at the end of the year.

Johnson said on Friday that Republicans would have more power to influence government spending next year, when they will have majorities in both chambers of Congress and Trump will hold the presidency.

"This was a necessary step to bridge the gap, to put us into that moment where we can put our fingerprints on the final decisions on spending," he said after the vote.

The House Speaker added that Trump "was certainly happy about this outcome, as well."

The federal government spent roughly $6.2 trillion last year and has more than $36 trillion in debt.

Congress will now need to act by the middle of next year to authorize further borrowing.

The incoming president has vowed to slash the federal budget and fire thousands of employees when he takes office next month. He is also counting on Republicans to help him pass a big tax relief package. 

Musk will head a budget-cutting task force under Trump's second administration but he will hold no official
position in Washington.

The billionaire, who trashed the original funding plan in a series of often-inaccurate social media posts this week, has been accused of interfering in the process, with questions raised over how an unelected citizen can wield so much power.

mm, dvv/sms (AP, Reuters)