Getty ImagesThe US government released a budget to avoid shutting itself down, but the hotly contested agreement does not include a call from President-elect Donald Trump to increase the federal borrowing limit.
US President Joe Biden signed the spending bill into law on Saturday morning. The Senate approved the agreement shortly after the midnight deadline by a vote of 85 to 11. The House of Representatives approved it hours ago by a majority of 336 votes to 34.
Without a funding deal, millions of federal employees would have ended up either on unpaid furlough or working without pay.
The US government's debt is about $36 trillion, with more money now spent on interest payments alone than on US national security.
The shutdown would have closed or reduced operations of public services such as parks, food assistance programs and federally funded nurseries, while limiting assistance to aid-dependent farmers and people recovering from natural disasters.
Earlier this week, lawmakers succeeded in negotiating a deal to fund government agencies, but it collapsed after Trump and tech billionaire Elon Musk called on Republicans to reject it.
The last government shutdown was during Trump's first presidential term in 2019 and lasted 35 days, the longest in US history.
The just-passed 2025 American Relief Act is 118 pages long, which was deleted from a 1,547-page bill rejected by Trump and Musk this week. It will fund the US government at current levels until March 14.
Trump's call to raise the debt ceiling — which has been a sticking point for Democrats and some Republican budget hawks — was not included in the final bill, but Republican leaders said the measure would be discussed in the new year.
The dramatic budget fight is a preview of the legislative battles that may be in store when Trump takes office next month.
“Trying to insert a debt ceiling suspension into legislation at the eleventh hour was not sustainable,” House Democratic Minority Leader Hakeem Jeffries said before the vote.
He later praised the bill's passage, saying, “House Democrats have succeeded in stopping the billionaire boys' club.”
Environmental Protection AgencyThe deal removes measures Democrats called for in the first version of the bill, including the first pay raise for lawmakers since 2009, health care reforms, and provisions aimed at preventing hotels and live event venues from deceptive advertising.
It already includes $100 billion in disaster relief funds to help recover from hurricanes and other natural disasters, and allocates $10 billion in aid to farmers.
It also includes full federal funding to rebuild Baltimore's Francis Scott Key Bridge, which collapsed when a cargo ship collided with it in March.
Musk, who was tasked by Trump with cutting government spending in his administration, lobbied hard against the previous version of the bill.
During the debate, Republicans said they looked forward to a “new era” with Trump taking office on January 20 and Republicans controlling both chambers of Congress. Currently, the Senate remains under Democratic control.
The budget controversy left Republican House Speaker Mike Johnson bruised as he faced criticism from members of his own party, raising a question mark over whether he can win a Jan. 3 vote in the chamber to retain his position.
“We are grateful that everyone stood together to do the right thing, and with this now accomplished as the last order of business for the year, we are ready for a big, important new beginning in January,” Johnson told reporters after Friday's vote. .
He also said he spoke frequently with both Trump and Musk during the negotiations.
Musk praised the Louisiana congressman's work on the budget in a post on his social media platform, X.
“The Speaker has done a good job here, given the circumstances,” he added. “It went from a pound note to an ounce note.”
