US Senate joins House in passing crucial spending bill, avoiding shutdown crisis: Key points

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In a dramatic turn of events, the US Congress passed a crucial spending bill in the early hours of Saturday, narrowly averting a government shutdown that threatened to disrupt federal services and holiday travel plans. The Senate followed the House in approving the bill, voting 85-11 just 38 minutes after a midnight deadline expired.

More than 800,000 federal workers were at risk of being sent home without pay before the vote. The bill now awaits President Joe Biden’s signature to become law, ensuring government funding through mid-March and avoiding immediate fiscal turmoil.

Here are the key points-

Avoiding shutdown

The US Senate passed the bill in an 85-11 vote 38 minutes after the midnight deadline, narrowly avoiding a government shutdown. Shutdown procedures were not invoked despite the brief delay in passage.

Next steps

The bill now heads to President Biden, who is expected to sign it into law. It extends government funding until March 14, includes $100 billion for disaster relief, $10 billion for farmers, and continues expiring food aid programs.

Fractured negotiations

The bipartisan effort faced delays after President-elect Trump and Musk criticized an earlier draft. Key Democratic provisions, including a crackdown on pharmacy benefit managers and pay raises for lawmakers, were removed after Republican pushback.

Debt ceiling issue

Congress did not address Trump’s demand to raise the debt ceiling before his term begins on January 20. The federal government has $36 trillion in debt and will need to authorize additional borrowing by mid-2024.

Reactions and criticism

House Speaker Mike Johnson defended the package, calling it a “necessary step” to allow Republicans greater control next year. Democrats accused Republicans of caving to Musk’s influence, with Rep. Rosa DeLauro criticizing Musk’s ties to China.

Musk celebrated the bill’s passage, noting its reduced size, calling it “a bill that weighed ounces instead of pounds.”

Economic impact of shutdown averted

A shutdown could have disrupted law enforcement, national parks, and federal workers’ paychecks. Industry experts warned it might have cost airlines, hotels, and related sectors $1 billion per week during the holiday season.

Political fallout

Some Republicans, including Rep. Rich McCormick, voted against the bill, citing its failure to address the country’s growing debt. House Democratic Leader Hakeem Jeffries stated that Democrats prevented a debt-ceiling hike and achieved partial success in advancing Americans’ needs.

Historical context

The last government shutdown, during Trump’s first term, lasted 35 days over a border security dispute.

Previous debt ceiling conflicts have rattled financial markets, with potential global repercussions. This spending package caps a turbulent week in Congress, reflecting ongoing divisions and setting the stage for critical fiscal debates in 2024.

TOI World Desk

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