US government shutdown looms as lawmakers reject Trump-backed bill

The United States government is on the verge of a shutdown as congress races to reach a last-minute deal before the clock strikes midnight.

With lawmakers deeply divided over key issues, the possibility of a political standstill grows more increasingly.

Republican leaders, who control congress, failed to pass a proposed spending plan on Thursday night aimed at averting the shutdown.

The plan, backed by Donald Trump, the president-elect, sought to extend government funding until mid-March and raise the debt ceiling until 2027, allowing the government to borrow more money during that period. It also included $110 billion for disaster relief.

However, the proposal has faced significant opposition. Democrats and 38 Republican lawmakers argued it was too costly and failed to include sufficient spending cuts.

The core issue is that congress has yet to agree on a budget for the fiscal year, which began on October 1.

Unlike most other nations, government shutdowns are a regular occurrence in the US, stemming from a 1980 law that prevents federal spending without an approved budget.

Since the 1970s, there have been 21 government shutdowns, with the longest lasting 35 days between December 2018 and January 2019 during Donald Trump’s presidency.

WHAT HAPPENS DURING A GOVERNMENT SHUTDOWN? 

A government shutdown means some federal services will cease to operate. National parks may close, and many government workers could go without pay until funding is restored.

Essential services, such as the military, air traffic control, hospitals, and public safety operations, will continue. Military retiree benefits, funded by a separate trust, will also continue, though delays may occur due to reduced staffing.

WHY DID THE BILL STALL? 

The spending bill failed to gain traction due to sharp divisions within the Republican Party and external influences.

Billionaire Elon Musk, a key Trump supporter, openly criticised the proposed bill on his X platform, labelling it “excessive spending” and threatening Republican lawmakers who supported it.

Musk’s opposition struck a chord with conservative voters, intensifying pressure on Republican legislators and contributing to the bill’s failure.

Trump himself has also opposed the proposal, particularly its link between funding and a two-year debt ceiling extension.

This has further divided the Republican Party and made reaching a consensus challenging.

WHAT HAPPENS NEXT?

Earlier on Friday, Trump signalled that he would welcome a government shutdown under the current administration.

“If there is going to be a shutdown of government, let it begin now, under the Biden Administration, not after January 20th, under ‘TRUMP,’” the president-elect wrote on his social media platform.

“This is a Biden problem to solve, but if Republicans can help solve it, they will!”

Congress must now work to pass a new funding bill— either passing a temporary continuing resolution to extend funding or negotiating a new spending bill entirely.

Any agreement will require bipartisan support, as contentious issues continue to divide both parties.