The US Senate has approved a budget deal to prevent the first federal government shutdown since 2019, following the swift endorsement of the same legislation by the House of Representatives just hours earlier.
The budget deal was approved just after the midnight deadline, achieving a significant margin of 85-11.
The legislation notably omits President-elect Donald Trump’s request to increase the federal borrowing limit, highlighting the constraints of his influence over lawmakers within his party.
The legislation will now be presented to President Joe Biden for his signature, and it will be officially enacted into law.
The Senate voted just after 00:30 (05:30 GMT), garnering support from a majority of Democrats and Republicans for the measure.
Without a funding agreement, millions of federal employees faced the prospect of being placed on temporary unpaid leave or continuing their work without compensation.
A government shutdown would close or significantly reduce operations for essential public services, including parks, food assistance programs, and federally funded preschools. It would also restrict support for farmers dependent on aid and individuals recovering from natural disasters.
The most recent government shutdown occurred during Donald Trump‘s first term in 2019. It lasted 35 days, marking the longest shutdown in United States history.
This week, lawmakers reached a tentative agreement to fund government agencies; however, the deal unravelled following calls from former President Trump and tech mogul Elon Musk urging Republicans to oppose it.
The “American Relief Act, 2025,” which spans 118 pages, removes a debt-limit provision previously insisted upon by Trump. This provision was a contentious issue for both Democrats and certain Republican budget hawks in earlier iterations of the legislation.
The agreement eliminates several provisions that Democrats advocated in the initial iteration of the legislation. These include the first salary increase for lawmakers since 2009, federal funding for the reconstruction of a bridge that fell in Baltimore, healthcare reforms, and measures designed to curb misleading advertising practices by hotels and live event venues.
The package encompasses $100 billion (£78 billion) designated for disaster relief to support hurricane recovery and address other natural calamities. Additionally, it sets aside $10 billion in assistance for farmers.
House Democrats have voiced their concerns regarding Musk’s involvement in the process, highlighting his status as an unelected billionaire.
Musk, who Trump had assigned to reduce government expenditures in a prospective administration, had previously exerted significant influence against an earlier iteration of the legislation.
During the debate, Republican representatives expressed optimism about entering a “new era” with Donald Trump set to assume the presidency on January 20, alongside Republican dominance in both chambers of Congress. The Senate is presently under the control of the Democratic Party.
The contentious budget negotiations have left Republican House Speaker Mike Johnson facing backlash from within his party, as critics question his management of the situation.
“We appreciate the collective effort to take the right action, and with this final decision made for the year, we are poised for a significant and meaningful beginning in January,” Johnson told reporters following Friday’s vote.
He stated that he had frequently talked with Trump and Musk throughout the negotiations.
Johnson’s comments followed Musk’s endorsement of the Louisiana congressman’s efforts regarding the budget in a post on X, the social media platform he controls.
“Considering the circumstances, the Speaker performed admirably,” he stated. “The legislation transformed from a hefty document to a much lighter version.”
The intense budget confrontation offered a glimpse into the potentially contentious legislative battles.