An administrative shutdown is looming in the US shortly before Christmas: On Thursday, a proposal for an interim budget submitted by Republicans to finance the federal government until mid-March was rejected by the majority of representatives in the House of Representatives. If no agreement is reached by midnight on Friday, the shutdown will take place – with unpaid mandatory leave for state employees and significant restrictions on public life.
The Republicans presented the new proposal after newly-elected US President Donald Trump rejected a previously reached bipartisan agreement and called for renegotiations. The transition financing is necessary because an agreement on a full annual budget for 2025 failed months ago.
Suspension of the debt ceiling for two years
On the one hand, the new proposal would have regulated the financing of the federal government, but on the other hand, as Trump subsequently requested, it would have extended the debt ceiling suspension for two years, i.e. for the first two years of the new proposal. his second term, which begins in January.
Trump praises new proposal as ‘very good agreement’
Congress has passed such an extension many times in recent years to allow the U.S. government to meet its obligations. However, this was not part of the ongoing budget negotiations, so Trump’s request came as a surprise to lawmakers. A suspension of the debt ceiling is usually preceded by lengthy negotiations.
For the budget legislation to pass the House of Representatives and the Senate, Republicans also need votes from Democrats. Trump praised the new proposal as a “very good deal for the American people,” while the head of the Democratic minority in the House of Representatives, Hakeem Jeffries, immediately dismissed it as “ridiculous” and “not serious.”
Musk called for blocking a budget deal
High-tech billionaire Elon Musk, who was appointed government advisor by Trump, first protested vehemently against the cross-party agreement between Republicans and Democrats. Trump later agreed with the entrepreneur and instructed his party to bury the compromise with the Democrats.
The multi-billionaire’s intervention in budget legislation is a highly unusual event. Trump hired Musk as an outside government advisor to reduce government costs; he has no formal government office and no mandate from voters. Above all, the conflicts of interest associated with the advisory position of the Tesla and SpaceX boss lead to sharp criticism.
The deadline for the agreement expires on Saturday
The further procedure to prevent the closure is not clearly defined. On the one hand, the Republican leader of the House of Representatives, Mike Johnson, is confronted with demands from Democrats to return to the original agreement, while on the other hand a number of Republicans are now linking the billions in expenditure planned therein with demands for cuts elsewhere. The deadline for the agreement expires on Saturday evening. In the event of a shutdown, hundreds of thousands of state employees would be placed on unpaid mandatory leave and federal authorities would be allowed to carry out only essential tasks.
In this case, there would be restrictions on government services, border controls and many public facilities such as national parks and state museums during the Christmas holidays. The longest shutdown took place during Trump’s first term around New Year’s Eve 2018/2019. The administrative closure lasted a total of 35 days.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
