U.S. lawmakers were scrambling on Friday to avert a government shutdown set to begin at midnight, with funding for federal operations hanging in the balance. The impasse comes after a bipartisan agreement to fund the government was derailed by President-elect Donald Trump and tech billionaire Elon Musk, his incoming “efficiency czar.”
If no deal is reached, non-essential government operations will cease, furloughing up to 875,000 workers, while 1.4 million others will work without pay.
Trump and Musk Upend Bipartisan Deal
The bipartisan agreement, originally crafted to ensure government funding well beyond Christmas, unraveled Wednesday when Trump instructed Republicans to abandon the plan. Musk fueled the chaos with a flurry of social media posts, many criticized for their inaccuracy, denouncing the deal.
House Speaker Mike Johnson proposed a new plan aligned with Trump and Musk’s demands. It included a two-year suspension of the debt ceiling and funding adjustments. However, the proposal faced fierce opposition, with 38 fiscally conservative Republicans rejecting it on Thursday, despite Trump’s threats to endorse primary challengers against dissenters.
“Republican obstructionists have to be done away with,” Trump declared on Truth Social.
Plan C and Uncertainty in the House
With the shutdown deadline hours away, House Republicans scrambled to draft a new approach, splitting the funding into three bills:
- Continuing government funding through mid-March.
- Allocating $100 billion for disaster relief, including aid for hurricane victims.
- Providing economic support for farmers.
This fragmented plan sidesteps the divisive debt ceiling issue, deferring it to 2025. However, whether enough Democrats will support this pared-down approach remains uncertain. Any agreement would also require Senate approval, a process that could take days if objections arise.
Democrats Dig In
Senator Patty Murray, a leading Democrat on budget issues, pledged to remain in Washington “through Christmas” to restore elements of the original bipartisan deal. Democratic lawmakers have also turned their attention to Musk’s growing influence over Trump and Republicans.
“Elon Musk has Donald Trump in a vice,” said Democratic Representative Dan Goldman of New York. “It’s very clear that Elon Musk is now calling the shots.” Some Democrats have mocked the dynamic, referring to Musk as “President Musk” in a bid to needle Trump.
Shutdown Looms Large
As agencies prepared for a weekend shutdown, the White House Office of Management and Budget issued alerts to federal departments. The stakes remain high, with Trump signaling he is content to see the government shuttered unless his demands are met.
With the national debt already exceeding $36 trillion, Trump’s second-term agenda, including proposed tax cuts projected to add $4 trillion to the debt over a decade, has intensified concerns.
The unfolding drama highlights deep divides over fiscal priorities, with a shutdown appearing increasingly inevitable as the clock ticks down.
