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By Katherine Fung
Senior Writer
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What's New
Congressional Republicans defied President-elect Donald Trump for the second time this week, as plans lawmakers passed a short-term bill to avert a government shutdown—a bill that did not include the debt limit increase that Trump has demanded.
In an effort to get spending bills through before the midnight deadline, Republican lawmakers voted to pass a bill Friday afternoon that would extend the continuing resolution (CR) until March, authorize billions in disaster relief and offer agricultural aid to farmers. The vote was 366-34, with all opposition votes coming from Republicans and one member voting present.
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The decision to punt on the debt-ceiling matter that Trump was hoping to dispose of under President Biden's watch comes after 38 House Republicans tanked a second run at a spending deal on Thursday that the president-elect had supported.
Why It Matters
Trump will not take office until January 20, but the messy fight on Capitol Hill in the waning days of the year is a sign that passing his legislative agenda may not be the smooth sailing his supporters have hoped for. Republicans will control both chambers of Congress when Trump enters the White House, but the party's history of infighting looks far from over — and Johnson's speakership may hang in the balance.
What to Know
"I expect that we will be proceeding forwards. We will not have a government shutdown and we will meet our obligations for our farmers who need aid, for the disaster victims all over the country and for making sure that military and essential services and everyone who relies upon the federal government for a paycheck is paid over the holidays," Johnson said Friday before the vote**.**
Trump has been putting pressure on Republicans to abolish the debt ceiling before he takes office next month. The nation's borrowing limit, which was instituted in 1917 during World War I, sets the maximum amount of money that the U.S. Treasury is authorized to borrow to pay the federal government's debts.
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Lifting the ceiling does not authorize new spending, but allows the government to spend money on obligations that Congress has already approved. However, because those obligations always cost more than what the government is bringing in through taxes, it adds to the deficit, currently running at about $36 trillion.
After torpedoing the original deal that House Speaker Mike Johnson negotiated with Democrats, Trump quickly gave his blessing to a much slimmer bill that included his idea of eliminating the debt limit. But a group of about three dozen hard-right House Republicans bucked against Trump Thursday, shutting Plan B down as well.
Johnson told reporters Friday, "I've talked to President Trump, in detail, and he knows exactly what we're doing."
Trump has said that while increasing the debt ceiling is "not great," he would "rather do it on Biden's watch" and called for the "ridiculous" ceiling to be extended into 2029.
Progressives and far-right conservatives alike have long championed abolishing the debt ceiling, but lawmakers on both sides have also used it as leverage when it's not their party in the White House.
What People Are Saying
Donald Trump wrote on Truth Social: "Congress must get rid of, or extend out to, perhaps, 2029, the ridiculous Debt Ceiling. Without this, we should never make a deal. Remember, the pressure is on whoever is President."
Elon Musk, CEO of Tesla, wrote on X: "The Speaker did a good job here, given the circumstances. It went from a bill that weighed pounds to a bill that weighed ounces. Ball should now be in the Dem court."
Elizabeth Warren, Democratic senator from Massachusetts, wrote on X: "I agree with President-elect Trump that Congress should terminate the debt limit and never again govern by hostage taking."
Mike Johnson, House Speaker, told reporters after the vote: "We are really grateful that tonight, in bipartisan fashion, with overwhelming majority of votes, we passed the American Relief Act of 2025. This is a very important piece of legislation. It funds the government, of course, until March of 2025. That was a big priority for us."
Hakeem Jeffries, Democratic House minority leader, wrote on Bluesky: "GOP extremists want House Democrats to raise the debt ceiling so that House Republicans can lower the amount of your Social Security check. Hard pass."
What's Next
The bill now heads to the Senate, which will need to pass the package before 12:01 a.m. to avoid a shutdown.
Update 12/20/24 5:06 p.m. ET This story was updated with comments from Musk.
Update 12/20/24 6:46 p.m. ET This story was updated with additional information.
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