Shutdown if new budget not passed by 20th
Trump demands abolition of government debt ceiling
Donald Trump, the President-elect of the United States, has opposed the temporary budget bill agreed upon by the Republican and Democratic leadership, escalating the 'shutdown' crisis that could paralyze the Biden administration's functions just one month before the end of its term. Elon Musk, CEO of Tesla and a close ally of Trump, is leading attacks against the bipartisan budget agreement. Bloomberg News criticized, "Trump and Musk have made the shutdown imminent, plunging Congress into chaos."
On the 19th (local time), Trump publicly expressed opposition to the temporary budget bill agreed upon by the bipartisan leadership in interviews with multiple local broadcasters. Earlier, the Republican and Democratic leadership agreed to pass a temporary budget bill necessary to operate the government until March 14 of next year, as the federal government’s budget was running out.
Trump told NBC News that day, "The temporary budget bill is unacceptable in many ways," adding, "It is a trap set by the Democrats." He also argued that Congress should abolish the government debt ceiling, which limits the amount of money the federal government can borrow.
Trump’s position is that if Congress does not push for an increase or abolition of the debt ceiling, it would be better for the federal government to shut down. In an interview with ABC News, he said, "If we don’t get that, you will see a shutdown," but added, "However, this will be a shutdown of the Biden administration and will only harm the incumbent president."
To prevent a federal government shutdown, Congress must pass the temporary budget bill by the 20th. However, with the deadline for passing the temporary budget bill just one day away, the prospect of a new budget bill is uncertain. Trump opposes the existing temporary budget bill, and the Democrats have stated they will not accept anything other than the existing agreement.
Accordingly, concerns about a federal government shutdown are growing. If a shutdown occurs, hundreds of thousands of government employees will immediately stop receiving their salaries. Previously, a government shutdown occurred for five weeks starting in December 2018, and the Congressional Budget Office (CBO) estimated the economic loss at about $3 billion.
However, voices within the Republican Party are saying that a shutdown must be endured. Some lawmakers are even questioning whether Mike Johnson, a fellow party member who will continue as Speaker of the House in the 119th Congress starting in January next year, should remain in that position. Speaker Johnson negotiated with the Democrats on the temporary budget bill opposed by Trump.
Currently, the Republican House leadership is actively working to prepare a new budget bill to avoid a shutdown.
The attacks on the temporary budget bill agreed upon by the bipartisan leadership were led by Musk, who has risen as a close ally of Trump. Musk, nominated as co-head of the Government Efficiency Department in the second administration, expressed opposition to the temporary budget bill the day before.
The New York Times (NYT) reported, "Musk, the richest person in the world, is leading the collapse of the bipartisan budget agreement, demonstrating political influence during the shutdown phase," adding, "There is growing anger in the House that Musk, who is not a member of Congress, is exerting too much influence over congressional procedures."
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