US House Passes Budget Deal to Avert Shutdown as Tensions Rise Over Future Spending Battles

In a dramatic turn of events, the Republican-controlled House of Representatives voted late Friday to pass the “American Relief Act, 2025,” narrowly averting what could have been the first federal government shutdown since 2019. The deal passed by an overwhelming bipartisan vote of 366-34, just six hours before the midnight deadline.  

However, the battle is far from over. The legislation must still clear the Democratic-controlled Senate before it can be signed into law by President Joe Biden, who has praised the agreement.  

The road to Friday’s vote was fraught with conflict. Lawmakers initially brokered a deal earlier in the week to fund government agencies, but it unraveled after President-elect Donald Trump and tech billionaire Elon Musk urged Republicans to reject the proposal.  

The failed negotiations culminated in two unsuccessful House votes, including one on a Trump-backed funding measure that was defeated on Thursday. The final version of the bill strips out a controversial debt-limit provision demanded by Trump, which had been a major point of contention for Democrats and some Republican budget hawks.  

Democrats also had to concede several priorities from earlier drafts, including a pay raise for lawmakers, healthcare reforms, funds to rebuild a collapsed Baltimore bridge, and measures to prevent deceptive advertising by hotels and live-event venues.  

Despite these concessions, all House Democrats present supported the final deal, while 34 Republicans voted against it.  

One of the most controversial aspects of the negotiation process was the involvement of Elon Musk, who played a significant role in lobbying against earlier versions of the bill. Musk, who Trump has tasked with spearheading government spending cuts in his upcoming administration, drew sharp criticism from Democrats.  

“An unelected billionaire has no business dictating how we fund our government,” Democratic lawmakers said during the heated floor debate.  

Nevertheless, Musk’s influence was evident, as he publicly praised House Speaker Mike Johnson, who reportedly consulted both Trump and Musk during the negotiations. “The Speaker did a good job here, given the circumstances,” Musk wrote on X, the social media platform he owns.  

The budget fight has left Speaker Mike Johnson under fire from members of his own party, some of whom accused him of mishandling the process. Speaking to reporters after the vote, Johnson expressed relief and optimism.  

“We are grateful that everyone stood together to do the right thing,” he said. “Having gotten this done now as the last order of business for the year, we are set up for a big and important new start in January.”  

However, his remarks also hinted at the challenges ahead. “This vote is just the beginning. Next year will be about setting a new course for this country.”  

The budget wrangling has provided a glimpse into the legislative battles expected once Trump assumes office next month and Republicans gain control of both chambers of Congress. The Speaker’s reliance on Trump and Musk signals a potential shift in governance style that could further polarize an already divided Washington.  

As lawmakers brace for the next chapter, the stakes are high. A government shutdown would leave millions of federal employees without paychecks, disrupt aid to farmers and disaster survivors, and undermine public services during the holiday season.  

The last government shutdown, in 2019, lasted 35 days—the longest in U.S. history—and cost the economy billions. This time, the House’s eleventh-hour compromise may have staved off immediate disaster, but it has set the stage for even more intense battles over America’s fiscal future.

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