US avoids government shutdown after bill passes
The US Senate has voted to pass a budget deal to avert what would be the first federal government shutdown since 2019, only hours after the lower House of Representatives approved the same legislation.
The budget deal was passed shortly after a midnight deadline with an overwhelming of margin of 85-11.
The bill does not include a demand from President-elect Donald Trump that lawmakers increase how much 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 00:30 (05:30 GMT), with most Democrats and Republicans supporting the measure.
Without a funding deal, millions of federal employees would have ended up either on temporary unpaid leave or left working without pay.
A shutdown would close or severely reduce operations for public services like parks, food assistance programmes and federally funded preschools, as well as limit assistance to aid-reliant farmers and people recovering from natural disasters.
The last government shutdown was during Trump’s first term in 2019 and lasted 35 days – the longest in US history.
Lawmakers earlier this week had successfully negotiated a deal to fund government agencies but it fell apart after Trump and tech billionaire Elon Musk called on Republicans to reject it.
The 118-page “American Relief Act, 2025” strips out a debt-limit provision that Trump had demanded, which was a sticking point for Democrats and some Republican budget hawks in an earlier draft bill.
The deal also removes measures sought by Democrats in the first version of the bill, including the first pay rise for lawmakers since 2009, federal funds to rebuild a bridge that collapsed in Baltimore, healthcare reforms, and provisions aimed at preventing hotels and live event venues from deceptive advertising.
It does include $100bn (£78bn) in disaster relief funds to help with hurricane recovery and other natural disasters, and allocates $10bn in aid to farmers.
Democrats in the House have criticised the involvement of Musk in the process, who they pointed out is an unelected billionaire.
Musk, who Trump has tasked with cutting government spending in his future administration, had lobbied heavily against an earlier version of the bill.
During the debate, Republicans said they looked forward to a “new era” with Trump taking office on 20 January and Republicans in control of both chambers of Congress. Currently, the Senate remains under Democratic control.
The budget wrangling left Republican House Speaker Mike Johnson bruised as he faced criticism from members of his own party over his handling of the process.
“We are grateful that everyone stood together to do the right thing and having gotten this done now as the last order of business for the year, we are set up for a big and important new start in January,” Johnson told reporters after Friday’s vote.
He also said that he had spoken frequently to both Trump and Musk 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 Speaker did a good job here, given the circumstances,” he posted. “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 in store.
