US President Joe Biden signed a crucial funding bill on Saturday, preventing a government shutdown just in time for the holiday season after intense negotiations in Congress that went down to the wire. The agreement, which extends government funding through March 14, 2025, was reached after lawmakers worked feverishly to find a compromise amidst last-minute pressure from incoming president Donald Trump and tech billionaire Elon Musk.
The bill, which includes $110 billion in disaster aid and financial relief for farmers, narrowly avoided disaster for millions of Americans who rely on government services. Prior to the agreement, there were fears of a shutdown, with up to 875,000 federal employees facing furloughs and 1.4 million workers required to continue their duties without pay.
“This agreement represents a compromise, which means neither side got everything it wanted,” President Biden said in a statement, emphasizing the rejection of a tax cut for billionaires that Republicans had sought. The Democrats control the Senate, ensuring the bill received the crucial support it needed to pass through the House of Representatives earlier in the day on Friday.
The successful passage of the bill marks a significant development for a government deeply divided between Republicans and Democrats, with both parties now focused on avoiding future disruptions. The episode also highlighted the increasing influence of Musk and Trump, who played key roles in pressuring Republicans to abandon an earlier bipartisan agreement.
Despite the challenges, House Speaker Mike Johnson expressed optimism for the future, stating that January will mark a “sea change” in Washington, promising a renewed focus on Republican priorities and the return of Trump to the White House.
The agreement, however, came at the cost of excluding pharmaceutical reforms, congressional pay raises, and tightened restrictions on US investments in China, which some Democrats directly attributed to Musk’s influence. As the government moves forward, both parties are now looking to avoid future crises and focus on maintaining stability in the run-up to the next election cycle.
