US House Passes Budget Deal, Averts Federal Government Shutdown

The Republican-led House of Representatives narrowly avoided a federal government shutdown by passing a budget deal just six hours before the midnight deadline.

The measure, which passed by a bipartisan vote of 366-34, now heads to the Democratic-controlled Senate for approval before reaching President Joe Biden’s desk for signature.

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The “American Relief Act, 2025” represents the third attempt this week to secure funding, following the collapse of two earlier measures. The bill eliminates contentious provisions, including a debt-limit clause championed by President-elect Donald Trump, which had been a major point of contention for Democrats and some fiscally conservative Republicans.

It also strips out Democratic priorities like pay raises for lawmakers, healthcare reforms, and funding for infrastructure projects, such as the reconstruction of a collapsed bridge in Baltimore.

In the final vote, 34 Republicans opposed the measure, while all attending Democrats supported it. President Biden lauded the deal in a statement, emphasizing its importance in maintaining government operations.

The negotiations were marked by sharp partisan divides and high-profile interventions. Earlier in the week, Trump and tech billionaire Elon Musk, who has been tapped by Trump to lead government spending cuts in his incoming administration, urged Republicans to reject the initial agreement. Musk’s influence, despite his unelected status, drew sharp criticism from Democrats, who questioned his role in the process.

Republican House Speaker Mike Johnson emerged from the contentious process bruised but optimistic. “We’re grateful that everyone stood together to do the right thing,” Johnson said, adding that the deal sets the stage for a strong start in January when Republicans will control both chambers of Congress. Johnson acknowledged frequent consultations with both Trump and Musk during the negotiations.

Musk praised Johnson’s efforts in a post on X, the platform he owns, calling the final bill a streamlined version of earlier proposals. “The Speaker did a good job here, given the circumstances,” Musk wrote.

The dramatic budget wrangling serves as a preview of the likely legislative battles to come once Trump takes office. With Republicans set to wield more power, negotiations could grow even more contentious, particularly over spending and debt limits.

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Failure to pass the budget would have led to a government shutdown, leaving millions of federal workers without pay and halting critical programs, including disaster relief and agricultural aid. The prospect of a shutdown during the holiday season raised widespread concerns about its impact on Americans nationwide.

The last shutdown, during Trump’s first term in 2019, lasted 35 days and remains the longest in U.S. history. The recent vote underscores the fragile balance of power in Washington and the challenges of governing in an era of heightened partisanship.

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