Washington DC: The Republican-controlled House of Representatives has approved the “American Relief Act, 2025”, a budget deal to prevent the first U.S. federal government shutdown since 2019.
The measure passed by a 366-34 vote just six hours before the midnight deadline and now awaits approval by the Democratic-controlled Senate before it can be signed into law by President Joe Biden.
This was the House’s third attempt in a week to pass a funding bill after earlier negotiations fell apart following opposition from President-elect Donald Trump and tech billionaire Elon Musk, both of whom urged Republicans to reject initial proposals.
The approved 118-page bill excludes contentious provisions like the debt-limit clause Trump demanded and Democrat-backed measures, including lawmakers’ pay raises, healthcare reforms, and funding for a collapsed Baltimore bridge.
Despite bipartisan support, 34 Republicans opposed the bill, while all Democrats present voted in favour. The deal also removes measures to regulate deceptive advertising by hotels and live event venues.
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House Speaker Mike Johnson faced criticism from his party over his handling of the process. However, he expressed optimism after the vote, saying, “We are set up for a big and important new start in January.” Johnson noted frequent discussions with Trump and Musk during the negotiations.
Musk praised Johnson’s efforts on X, calling the revised bill a success: “It went from a bill that weighed pounds to a bill that weighed ounces.”
The White House released a statement commending the deal, while Democrats criticized Musk’s involvement in the process, emphasizing his unelected status. Musk has been advising Trump on government spending in his upcoming administration.
The dramatic budget wrangling previews the legislative challenges expected when Republicans take control of both chambers of Congress next month. Trump’s presidency is expected to usher in a “new era,” according to Republican lawmakers.
Failure to pass the budget would have led to millions of federal employees going without pay checks and disrupted assistance for farmers and disaster recovery programs during the holiday season.
The last government shutdown, in 2019 during Trump’s first term, lasted 35 days, becoming the longest in U.S. history.
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