WASHINGTON, 12 March 2025 (BSS/AFP) – The US House of Representatives on Tuesday passed a stopgap bill aimed at preventing a government shutdown that would add to the economic turmoil surrounding President Donald Trump’s early tenure in office.
In a vote largely along party lines, the Republican-led House agreed to continue government funding until 30 September, granting Trump the summer months to push his agenda of tax cuts, mass deportations, and increased energy production through Congress.
The bill now moves to the Republican-controlled Senate, which must approve it before Friday night’s midnight deadline to avert a shutdown.
However, the bill’s fate is uncertain, as it requires support from Senate Democrats, leaving it hanging in the balance.
“It’s decision time for Senate Democrats: vote to keep the government open or be held accountable for shutting it down,” said House Speaker Mike Johnson, challenging the Senate’s minority party.
The House’s passage of the bill marks a significant victory for Speaker Johnson, who faced opposition from backbenchers reluctant to support stopgap measures, often known as continuing resolutions (CRs), which mainly freeze spending rather than implementing cuts.
A potential shutdown would come as Wall Street continues to reel from Trump’s trade war and sweeping federal budget cuts that have led to tens of thousands of job losses.
While traders initially greeted the Republican billionaire’s election with optimism, growing concerns over his tariffs reigniting inflation and triggering a recession have led to a three-week market sell-off.
If the Senate fails to approve the bill, the government could grind to a halt, resulting in a shutdown that would furlough tens of thousands of public employees as federal agencies close their doors.
Senate Democrats are largely opposed to the 99-page CR, which proposes a $13 billion reduction in domestic spending while increasing defence spending by $6 billion.
Republicans argue that it is a “clean” CR, but critics counter that it includes numerous partisan provisions, making it a non-starter for the Democrats.
Among the most contentious provisions is one that would grant Trump the authority to impose tariffs under emergency economic powers, bypassing Congressional oversight. This would enable any member of Congress to challenge and vote to end such tariffs.
The bill also includes cuts worth billions of dollars from veterans’ programmes for those exposed to Agent Orange and toxic burn pits, as well as from medical research into conditions such as cancer, Alzheimer’s, and heart disease.
Additionally, significant cuts would affect nuclear non-proliferation efforts, rural broadband expansion, food inspections, rent subsidies, and election security programmes.
This funding dispute coincides with Trump’s push for mass federal layoffs as he seeks to reduce or eliminate various agencies, from USAID to the Department of Education.
The effort is led by Trump’s advisor Elon Musk, the world’s wealthiest person, whose controversial approach to restructuring government agencies has angered many, including members of his own party. Polls show Musk is unpopular with the public, and his cost-cutting measures have sparked fierce opposition at town hall meetings.
“House Republicans are not looking to responsibly fund the government,” argued Patty Murray, the top Senate Democrat involved in the funding negotiations.
“They aim to turn it into a slush fund for Trump and Musk, enabling them to focus entirely on tax cuts for billionaires.”
Due to the partisan divide in Congress, a CR is necessary as lawmakers have failed to pass the 12 separate appropriations bills required to fund various federal agencies for the fiscal year 2025.
In the Senate, Democrats face pressure to oppose Trump’s policies, but they are wary of being blamed for a shutdown if they block the CR.
Republicans need to secure at least 60 votes to pass the bill in the Senate, and with one conservative senator indicating opposition, Majority Leader John Thune will need the backing of at least eight Democrats to prevent a shutdown.
Context for Readers::
A government shutdown occurs when Congress fails to pass funding bills, forcing federal agencies to halt operations. Such shutdowns can have significant impacts on government employees, public services, and the economy. This particular funding dispute highlights the deep divisions within Congress over President Trump’s policies, particularly regarding his proposed budget cuts and tariff strategies. As negotiations continue, both parties are under pressure to find a compromise to avoid further economic instability.