Biden signs funding bill, averting US government shutdown Politics News

The US President hailed the passage of the budget legislation after days of uncertainty and negotiations down to the wire.

United States President Joe Biden has signed a bipartisan funding bill that prevents a government shutdown, after President-elect Donald Trump rejected an initial deal that was thrashed out in Congress.

The White House announced Saturday that Biden had signed legislation that funds the government until mid-March.

“This settlement represents a compromise, which means neither party got everything they wanted. But it rejects the accelerated passage of tax cuts for billionaires sought by Republicans, and ensures the government can continue to operate at full capacity,” Biden, a Democrat, said in a statement.

“This is good news for the American people, especially as families gather to celebrate this holiday season.”

The Democratic-controlled Senate passed the bill to continue government funding by an 85-11 vote, 38 minutes after midnight (05:00 GMT) in Washington DC on Saturday.

The budget bill was approved by the Republican-controlled House of Representatives on Friday evening with bipartisan support.

Saturday’s signing capped a tumultuous week in the US Congress after Trump, who took office in January, and his adviser, Tesla CEO Elon Musk, objected to the initial bipartisan agreement.

Trump had insisted that the deal include an increase in the government’s borrowing limit. If not, he said, the government shutdown “begins now.”

Lawmakers spent several days trying to reach another deal amid widespread disruptions to government services during the year-end holiday season.

The shutdown would mean the closure of non-essential operations, 875,000 workers would be furloughed and more than 1.4 million would have to work without pay.

The final version of the legislation would fund the government at current levels until March 14. It also provides $100 billion in disaster assistance as well as $10 billion in aid to farmers.

But the deal removed some provisions favored by Democrats, who accused Republicans of caving in to pressure from Musk — an unelected billionaire who has no experience in government.

Some Republicans voted against the package because it did not cut spending.

Republican House Speaker Mike Johnson said the party will have more influence next year, when it has majorities in both houses of Congress and Trump is in the White House.

“This was a necessary step to close the gap, to get us to a moment where we can put our fingerprints on the final decision on spending,” he told reporters after the House vote. He said Trump supported the agreement.

Johnson said the agreement was “a good outcome for the country”.

Still, the episode raises questions about whether Johnson will be able to save his job in the face of angry Republican colleagues.

The House is scheduled to elect the next speaker on January 3, when the new Congress convenes.

Republicans will have a narrow majority of 220-215, giving Johnson little margin for error as he tries to win the speakership once again.