The US House of Representatives passed a stopgap measure on Tuesday to avert a looming government shutdown, which would have exacerbated the economic turmoil affecting President Donald Trump’s early days in office.
In a largely party-line vote, the Republican-controlled chamber agreed to extend government funding through September 30, providing Trump with the summer months to push his agenda of tax cuts, mass deportations, and expanded energy production through Congress.
The next step is for the Republican-led Senate to approve the measure before the midnight deadline on Friday, but it remains uncertain as the bill requires Democratic support to pass.
“Now it’s decision time for Senate Democrats: cast a vote to keep the government open or take responsibility for a shutdown,” said House Speaker Mike Johnson, urging the upper chamber’s minority party to act.
This marks a significant victory for Johnson, who had to convince skeptical backbenchers to support the stopgap measure, known as a continuing resolution (CR), which primarily freezes spending instead of making cuts.
The threat of a shutdown looms as Wall Street grapples with the fallout from Trump’s trade war and deep cuts to federal spending, which have already resulted in tens of thousands of layoffs. Initially optimistic after Trump’s election, traders are now worried that his tariffs will fuel inflation and spark a recession, leading to a three-week market sell-off.
Should the Senate fail to pass the CR, the government could grind to a halt, furloughing thousands of public employees and shutting down federal agencies.
Senate Democrats are largely opposed to the 99-page CR, which would cut domestic spending by about $13 billion while increasing defense spending by $6 billion. While Republicans describe the CR as “clean,” critics argue that it includes ideological add-ons that make it unworkable, including provisions that allow Trump to bypass congressional approval for tariffs imposed under emergency economic powers. This provision gives Trump the ability to unilaterally impose tariffs, with little recourse for Congress to block them.
Additional cuts in the measure target programs for veterans exposed to Agent Orange and toxic burn pits, medical research on diseases such as cancer and Alzheimer’s, and funding for nuclear non-proliferation, rural broadband, food inspections, rent subsidies, and election security.
The funding dispute comes as Trump pushes forward with sweeping federal layoffs, aiming to reduce or eliminate several agencies, including USAID and the Department of Education. The effort is being led by Trump’s ally Elon Musk, who has drawn criticism for his unorthodox approach. While Musk enjoys the president’s confidence, his popularity with voters is low, and his actions have sparked backlash, even from Republican lawmakers.
“House Republicans are not trying to responsibly fund the government,” said Patty Murray, the top Senate Democrat involved in the funding negotiations. “They are turning it into a slush fund for Trump and Musk, allowing them to push their agendas while shifting focus to tax cuts for billionaires.”
Because Congress remains deeply divided, it has been unable to pass the 12 separate appropriations bills required to fund various federal agencies for 2025. Senate Democrats are under pressure to oppose Trump’s proposals but are hesitant to block the CR for fear of being blamed for a government shutdown.
To pass the CR in the Senate, Republicans need 60 votes, and with some conservative members signaling opposition, Majority Leader John Thune will need the support of at least eight Democrats to avoid a shutdown.
AFP
