AMN
In United States a government shutdown loomed after Republicans in Congress failed on Thursday to pass a pared-down spending bill. The potential shutdown could disrupt Christmas travel and deliver a blow to the US economy just a month before Donald Trump returns to the White House.
Lawmakers face a last-minute scramble to secure a new deal before the Friday midnight deadline – or all nonessential government functions will pause.
According to CBS a looming shutdown stems from controversy over a spending bill that would have extended funding through March 14, but which was nixed by House Speaker Mike Johnson after some Republicans — including President-elect Donald Trump — objected to billions of dollars in spending that had been added to the bill.
Tesla CEO Elon Musk, a billionaire who spent almost $300 million to back Trump and other Republican candidates in the November election, had also voiced opposition to the spending bill, which he called “terrible.” When the measure was scrapped, Musk proclaimed on X, “The voice of the people has triumphed!”
House Republicans on Friday regrouped after the failed vote on Thursday evening, with Johnson telling reporters at the Capitol he’s “expecting votes this morning, so stay tuned — we’ve got a plan.” House Republicans are set to gather on Capitol Hill at 12:30 p.m. ET.
Without congressional approval for new spending, federal agencies are typically barred from doling out money, although there are some exceptions, such as activities to protect life and property. At the same time, agencies must make decisions about which workers will stay on the job, which can lead to varying impacts on government operations.
A US government shutdown occurs when Congress fails to fund the federal government by a specified deadline, in this case 20 December at midnight.
More specifically, the terms of a piece of legislation known as the Antideficiency Act, first passed in 1884, prohibits federal agencies from spending or obligating funds without an act of appropriation – or some alternative form of approval – from Congress.
Congress only announced a stop-gap measure to keep the government open this week. On Tuesday, the House speaker, Mike Johnson, unveiled a bipartisan agreement that would have extended government funding until March. It included assistances for farmers, hurricane relief and a small pay raise for for members of Congress.