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Trump endorses new spending plan in Congress that suspends debt limit for two years

U.S. House Minority Leader Hakeem Jeffries, D-N.Y., left, and U.S. Speaker of the House Mike Johnson, R-La.,  look on during a menorah lighting ceremony during a Hanukkah reception at the U.S. Capitol Building on Dec. 17, 2024, in Washington, D.C. (Photo by Anna Moneymaker/Getty Images)

U.S. House Minority Leader Hakeem Jeffries, D-N.Y., left, and U.S. Speaker of the House Mike Johnson, R-La.,  look on during a menorah lighting ceremony during a Hanukkah reception at the U.S. Capitol Building on Dec. 17, 2024, in Washington, D.C. (Photo by Anna Moneymaker/Getty Images)

WASHINGTON — The U.S. House failed to pass a Republican stopgap spending package Thursday, sharply increasing the odds a partial government shutdown will begin after the current funding bill expires Friday at midnight. 

The 174-235 House vote came less than three hours after GOP leaders released a second stopgap spending bill this week. The first version, released just two days ago, was widely rejected by President-elect Donald Trump as well as his allies on and off Capitol Hill.

A total of 38 GOP lawmakers and 197 Democrats voted against passage. Only two Democrats voted in support of the measure. One Democrat voted “present.”

House Republicans tried to approve the new measure under a process called suspension of the rules, which required at least two-thirds of lawmakers to support the legislation for passage, including Democrats. Trump endorsed this new version, which included a two-year suspension of the debt limit.

GOP leaders could next try to put the failed bill up for a vote under a rule, which requires a simple majority vote to approve, but that path takes a few more steps and isn’t a guarantee this legislation could pass.

House Appropriations Chairman Tom Cole, R-Okla., said during floor debate the bill was necessary to avoid a shutdown and provide disaster aid to states throughout the country.

“We need to provide the necessary disaster recovery aid for states and communities as our fellow citizens rebuild and restore. The relief efforts are ongoing — it will be months, if not years, before life returns to normal,” Cole said.

No input from Democrats

Connecticut Rep. Rosa DeLauro, the top Democrat on the Appropriations Committee, rebuked GOP lawmakers for walking away from the deal both parties reached on the first stopgap package.

“There were things in it that Democrats liked and Republicans did not, and there were things in it that Republicans liked and Democrats would have preferred to leave out. But that is the nature of government funding bills,” DeLauro said. “They require compromise and the support of Democrats and Republicans.”

The legislation House lawmakers were about to vote on had no input from Democrats, she said.

While Republicans have a narrow majority in the House, Democrats control the Senate and the White House, making bipartisan agreement on legislation essential to it becoming law.

White House press secretary Karine Jean-Pierre wrote in a statement released Thursday just before the vote that the GOP was “doing the bidding of their billionaire benefactors at the expense of hardworking Americans.”

“Republicans are breaking their word to support a bipartisan agreement that would lower prescription drug costs and make it harder to offshore jobs to China — and instead putting forward a bill that paves the way for tax breaks for billionaires while cutting critical programs working families count on, from Social Security to Head Start,” she wrote. “President Biden supports the bipartisan agreement to keep the government open, help communities recovering from disasters, and lower costs — not this giveaway for billionaires that Republicans are proposing at the 11th hour.”

Trump calls new bill ‘a very good deal’

The stopgap spending package that failed Thursday night would have kept the government funded through mid-March while boosting disaster aid by about $100 billion.

The legislation would have suspended the nation’s debt limit for an additional two years through January 2027 and given Congress until September to finish the much overdue farm bill.

Trump cheered the new version of the stopgap spending bill before the vote after rejecting the first version released just two days ago.

“Speaker Mike Johnson and the House have come to a very good Deal for the American People,” Trump wrote on social media. “The newly agreed to American Relief Act of 2024 will keep the Government open, fund our Great Farmers and others, and provide relief for those severely impacted by the devastating hurricanes.”

“A VERY important piece, VITAL to the America First Agenda, was added as well – The date of the very unnecessary Debt Ceiling will be pushed out two years, to January 30, 2027,” Trump added. “Now we can Make America Great Again, very quickly, which is what the People gave us a mandate to accomplish.”

Two days of tension

The second stopgap bill came after a dramatic 48 hours that began with the Tuesday night release of a different stopgap spending package before Trump’s ally Elon Musk called on GOP lawmakers to reject the bill their leadership team on Capitol Hill had negotiated over weeks.

Trump then told Republicans to address the debt limit in the package or get rid of it entirely, throwing another complex issue into the mix at the last minute.

The core elements of the stopgap spending package House Republicans released Thursday afternoon were similar to the Tuesday night package, though it dropped dozens of measures, including a provision allowing the nationwide sale of 15% ethanol blended gasoline year round.

The new package, same as the old package, doesn’t include a long-standing provision that prevents members of Congress from receiving a cost of living adjustment. Unless that’s changed, lawmakers would receive a 3.8% raise next year increasing their annual salary from $174,000 to $180,600.

“It removed key provisions to limit the power of pharmaceutical companies, and abandons our bipartisan efforts to ensure American dollars and intellectual property are reinvested in American businesses and workers; instead of fueling the Chinese Communist Party’s technology and capabilities,” DeLauro said during debate.

The new 116-page stopgap spending bill was considerably shorter than the 1,547-page version released Tuesday.

Several new deadlines

The spending package would have given Congress until March 14 to complete work on the dozen annual government funding bills that were supposed to become law by the start of the new fiscal year on Oct. 1.

It would have given the House and Senate until Sept. 30, 2025, to reach agreement on the five-year farm bill, which lawmakers were supposed to negotiate a new version of more than a year ago.

The legislation would suspend the debt limit through Jan. 30, 2027.

The bill includes tens of billions in emergency spending to help communities throughout the country recover from various natural disasters, including wildfires, tornadoes and hurricanes.

summary of the bill, released by House Democrats on Tuesday, showed the Federal Emergency Management Agency and Department of Agriculture would receive the bulk of the natural disaster recovery funding. House Republicans didn’t appear to have altered any of the original funding levels for disaster aid in the updated Thursday version.

The USDA would get $33.5 billion in funding, with $21 billion of that designated for disaster assistance and another $10 billion for economic assistance to farmers and producers.

Other agriculture assistance funding would go toward the Agriculture Research Service, Emergency Watershed Protection Program, Emergency Forest Restoration Program and Rural Development Disaster Assistance Fund, among several others.

The Department of Homeland Security would receive $30.8 billion in funding, with $29 billion for the Federal Emergency Management Agency’s disaster relief fund.

An additional $1.5 billion would go to the Hermit’s Peak and Calf Canyon Fire fund “to continue efforts to support families who suffered damages due to the April 2022 wildfire,” according to the summary. 

The wildfire was the largest in New Mexico’s history and caused about $5.14 billion in damages, according to a report released this week.

The Department of Housing and Urban Development’s Community Development Block Grant program for disaster recovery would receive $12 billion in additional funding.

Another $8 billion would go to the Transportation Department to “reimburse states and territories for damage from natural disasters to roads and bridges in the National Highway System, including 100 percent of costs associated with rebuilding the Francis Scott Key Bridge in Baltimore,” according to Democrats’ summary.

The Forest Service would get $6.4 billion for ongoing recovery efforts from natural disasters that took place in 2022, 2023 and this year. The National Park Service would receive $2.3 billion as part of the Department of the Interior’s $3 billion total.

The Defense Department would get $3.4 billion to repair damages related to natural disasters. The Army Corps of Engineers would receive $1.5 billion for repairs and to increase resiliency.

The Small Business Administration would receive $2.25 billion for disaster loans.

Filibuster threat

Shortly before House GOP leaders announced their second stopgap package, North Carolina Sen. Thom Tillis and South Carolina Sen. Lindsey Graham committed to holding a talking filibuster to delay passage of any stopgap funding measures if that bill doesn’t include substantial disaster aid.

The two, along with North Carolina Sen. Ted Budd, all of whom are Republicans, held a press conference Thursday afternoon to urge GOP leaders in the House to keep the roughly $100 billion in emergency disaster aid in any short-term spending package.

They also rejected calls from some members of their own party to find ways to pay for the new emergency spending, saying that’s not how disaster aid packages have traditionally been handled.

“When you’re in the middle of a crisis, I don’t think anybody’s going to want to hear somebody come to the floor and talk about the fiscal responsibility of giving these people a home again, or giving them an opportunity to open up a business again and employ people,” Tillis said. “So, no I don’t think $10 billion or $20 billion, and ‘I promise we’ll do something more in March’ is an acceptable solution. We know what the need is today. It was negotiated in a package and it needs to be in a package to get my support to get out of here.” 

Graham sought to explain the realities of divided government and pointed out that even when Republicans control the House and Senate next year, they’ll still need Democratic support on spending bills.

“We need 60 votes to get it done in the Senate,” Graham said, referring to the chamber’s legislative filibuster, which requires at least 60 lawmakers vote to advance bills toward final passage.

“Mike Johnson is going to have to pick up a handful, at least, of Democrats, because there’s some Republicans who will never vote for anything,” Graham added.

Tillis was unable to answer a question about whether a partial government shutdown beginning Saturday at 12:01 a.m. would affect the federal government’s ongoing natural disaster response in his home state.

The Federal Emergency Management Agency, Department of Agriculture, Department of Transportation and numerous federal departments would be required to follow their shutdown guidance if Congress doesn’t fund the government on time.

Those departments and agencies divide up their staffs into excepted employees, whose jobs address the protection of life or property, and non-excepted employees, who don’t.

Neither category of federal employee gets paid until after the shutdown ends.

American Federation of Government Employees National President Everett Kelley released a written statement Thursday that a shutdown would harm federal workers who “inspect our food, protect our borders, ensure safe travel during the holidays, and provide relief to disaster victims.”

“Over 642,000 of them are veterans of our armed services,” Kelley wrote. “Allowing them to go without a paycheck over the holidays is unacceptable.”

Huge spending bill unveiled in Congress provides more than $100 billion in disaster aid

 Congressional leaders unveiled a catch-all, year-end package Tuesday night that would provide disaster aid along with stopgap funding to keep the government running through mid-March. Heavy rains from Hurricane Helene caused record flooding and damage on Sept. 28 in Asheville, North Carolina. (Photo by Melissa Sue Gerrits/Getty Images)

 Congressional leaders unveiled a catch-all, year-end package Tuesday night that would provide disaster aid along with stopgap funding to keep the government running through mid-March. Heavy rains from Hurricane Helene caused record flooding and damage on Sept. 28 in Asheville, North Carolina. (Photo by Melissa Sue Gerrits/Getty Images)

WASHINGTON — Congressional leaders unveiled a catch-all, year-end package Tuesday that would provide more than $100 billion in disaster aid and give lawmakers more time to wrap up overdue work on government funding, the farm bill and a handful of other issues they decided not to finish.

The disaster aid section of the package will bolster funding for the Federal Emergency Management Agency, the Department of Agriculture, the Small Business Administration and several other federal agencies to continue their ongoing response efforts following a slew of natural disasters during the last two years.

The 1,547-page package would give Congress until mid-March to complete work on the dozen annual government funding bills that were supposed to become law by Oct. 1.

It also extends the farm bill through Sept. 30, 2025. In a victory for corn growers, the bill includes a provision to allow nationwide sales of a gasoline blend that includes up to 15% ethanol throughout the year.

House Speaker Mike Johnson, a Louisiana Republican, said during a press conference before the bill was publicly released he had hoped the year-end stopgap spending bill would simply extend current funding until next year, when the GOP will hold the House, Senate and White House.

“But a couple of intervening things have occurred. We had, as we describe them, acts of God. We had these massive hurricanes if you know, in the late fall — Helene and Milton and other disasters,” Johnson said. “We have to make sure that the Americans who were devastated by these hurricanes get the relief they need. So we are adding to this a disaster relief package and that’s critically important.”

“Also important is the devastation that is being faced by our farming community,” he said. “The agriculture sector is really struggling. They’ve had effectively three lost years and commodity prices are a bit of a mess. And you have input costs that have skyrocketed because of Bidenomics.”

Johnson defended his decision to attach the other provisions in the stopgap spending bill, also known as a continuing resolution. Numerous Republicans have expressed frustration with his choice to bundle all the bills together in one package, instead of moving them individually.

“We have to be able to help those who are in these dire straits and that’s what the volume of the pages to this is,” Johnson said.

House Appropriations Committee ranking member Rosa DeLauro, a Connecticut Democrat, said in a written statement she would support the bill when that chamber votes on it later this week.

“While I — and so many of my colleagues on both sides of the aisle — wish we were voting on full-year funding bills, I am pleased that this package includes important resources for American farmers, emergency defense investments, investments in the Virginia Class submarine program, and increased funding for child care,” DeLauro wrote. “It also includes outbound investment protections I have long fought for to prevent American dollars from fueling the Chinese Communist Party’s policies with our capital and capabilities.”

“However, I am concerned that we could not agree on additional funding for veterans health care, and we must be vigilant in ensuring that the incoming Administration does not ration care promised to every affected veteran,” DeLauro added. “The passage of this bill should mark the beginning of negotiations on final 2025 funding bills. The start of a new Congress does not change the reality that any funding bills will still need the support of Democrats and Republicans in the House and in the Senate in order to become law.”

Hurricanes, tornadoes, bridge collapse

President Joe Biden asked Congress to approve nearly $100 billion in emergency aid to bolster the accounts of several agencies that are helping residents, small businesses, farmers, and local and state governments recover from dozens of natural disasters.

The emergency supplemental request came shortly after Hurricanes Helene and Milton caused widespread devastation throughout Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee and Virginia.

The funding will also help communities recover following tornadoes throughout the Midwest; the collapse of the Francis Scott Key Bridge in Baltimore, Maryland; and severe storms in Alaska, Connecticut, Illinois, Louisiana, New Mexico, Pennsylvania and Virginia.

The disaster response section of the spending package would include:

  • $29 billion for FEMA’s disaster relief fund

  • $21 billion for disaster assistance for farmers and ranchers

  • $12 billion for the Department of Housing and Urban Development’s community development block grant program for disaster assistance

  • $10 billion in economic assistance for farmers and ranchers

  • $8 billion for the Department of Transportation to provide disaster relief for federal highways

  • $3.25 billion for State and Tribal Assistance Grants for water infrastructure repairs.

  • $2.2 billion for the Small Business Administration’s disaster loan program

  • $1.3 billion to replace the Francis Scott Key Bridge in Baltimore, Maryland

Congress headed for finish line

The package is expected to pass the House and Senate before members depart for their holiday break on Friday. Biden is expected to sign the bill into law.

When Congress convenes again on Jan. 3 for the start of the 119th Congress, the Senate will flip from Democratic to Republican control. The House will remain red, though with a slightly smaller majority and very little, possibly no, room for GOP lawmakers to vote against partisan bills.

Republicans hope they can use unified control of Washington, which will begin after President-elect Donald Trump’s inauguration on Jan. 20, to move through sweeping changes to federal spending and policy.

That is one of the reasons, Congress included a second continuing resolution in the package released this week. That stopgap spending bill will avoid a partial government shutdown until at least March 14.

That part of the bill is necessary since Congress has brushed off its responsibility to fund the government by failing to complete work on the dozen annual appropriations bills before the start of the fiscal year on Oct. 1.

Lawmakers approved another stopgap spending bill in late September to keep funding levels mostly flat through Dec. 20, but did not use the extra time to negotiate a compromise between the Republican House and Democratic Senate.

GOP leaders have opted to hold over those full-year government funding measures until they control both chambers of Congress next year, in hopes they’ll be able to more closely align the final versions of the 12 bills to their goals.

But Republican leaders will still need Democratic support to get the final spending bills, or another stopgap spending bill, through the Senate next year if they want to avoid a partial government shutdown.

The Senate requires at least 60 lawmakers to vote to advance major legislation toward a final, simple majority passage vote. The GOP will hold 53 seats next year, short of the requirement. Several Republican senators have also staked their reputations on consistently voting against any spending bill, making Democratic votes necessary to avoid a shutdown.

Republicans in the House will also likely need Democrats to move government funding bills through that chamber, given they too have a significant faction of members who refuse to vote for the full-year spending bills and often vote against the short-term stopgap bills as well. 

Farm bill extension

The end-of-year catchall bill released Tuesday also includes another extension for the farm bill through next year, a new version of which Congress was supposed to pass more than a year ago.

Instead, lawmakers in both chambers have prioritized other interests, delaying work on the legislation that authorizes agriculture and nutrition programs.

Congress last approved a farm bill in December 2018, which the nonpartisan Congressional Budget Office said at the time would cost $428 billion during the five years it was supposed to cover.

Funding for nutrition, crop insurance, farm commodity programs and conservation accounted for about 99% of the mandatory spending in the law, according to a report from the nonpartisan Congressional Research Service.

Nutrition has become one of the higher price tag items in the farm bill during the last few decades and accounted for about $326 billion of the mandatory spending in the 2018 farm bill. Another $38 billion went to crop insurance, $31 billion to commodities and $29 billion to conservation during the five-year window that has since lapsed.

The nutrition funding goes toward several federal food programs for lower income people, including the Supplemental Nutrition Assistance Program or SNAP and the Emergency Food Assistance Program. 

The Republican House and Democratic Senate have been unable to work through their differences on a new five-year farm bill, despite giving themselves more than a year of extra time.

The bill lawmakers are set to approve this month will give unified Republicans in control of Washington another year to get the work done.

D.C. Deputy Bureau Chief Jacob Fischler contributed to this report. 

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