US Senate Passes Budget Deal to Avert Government Shutdown
The US Senate has narrowly avoided a government shutdown by passing a budget deal in the nick of time. The Senate’s decision came just hours after the House of Representatives approved the same legislation, preventing what would have been the first federal government shutdown since 2019.
The budget deal was passed with an overwhelming margin of 85-11 shortly after a midnight deadline. The bill now awaits President Joe Biden’s signature to become law.
The bill does not include a demand from President-elect Donald Trump to increase the federal government’s borrowing limit, highlighting the limits of his influence over lawmakers from his own party.
Without a funding deal, millions of federal employees would have faced temporary unpaid leave or working without pay. A government shutdown would have also impacted public services like parks, food assistance programs, and federally funded preschools, as well as aid for farmers and disaster recovery efforts.
The last government shutdown occurred during Trump’s first term in 2019 and lasted a record 35 days. Lawmakers had initially negotiated a deal to fund government agencies earlier in the week, but it fell apart after Trump and tech billionaire Elon Musk urged Republicans to reject it.
The budget deal, known as the “American Relief Act, 2025,” includes $100 billion in disaster relief funds and $10 billion in aid for farmers. It also removes provisions sought by Democrats, such as a pay raise for lawmakers and healthcare reforms.
The dramatic budget fight serves as a preview of the tense legislative battles that may lie ahead, as the new administration prepares to take office and navigate a divided Congress.
