Biden Signs Bill To Avert US Government Shutdown Ahead Of Christmas. Trump’s Debt Limit Demand Rejected

US President Joe Biden has signed legislation to prevent a government shutdown just ahead of Christmas, bringing an end to a week of political uncertainty in Washington. The bipartisan budget plan, passed shortly after the deadline, rejected former President Donald Trump’s demand to include a debt limit increase in the negotiations.  
The agreement funds the US government at current levels until 14 March and includes $100 billion in disaster aid and $10 billion for agricultural assistance to farmers, news agency AP reported.  
US House Speaker Mike Johnson, who faced immense pressure during the negotiations, stated lawmakers were determined to “meet our obligations” and avoid a shutdown. However, Trump’s insistence on a debt limit increase had complicated the proceedings. “If not, then let the closures ‘start now,’” Trump had declared.  
The revised budget plan passed the House with a 366-34 vote and was approved by the Senate with an 85-11 margin after midnight. Following this, the White House announced it had halted preparations for a potential shutdown.  
“There will be no government shutdown,” Senate Majority Leader Chuck Schumer remarked, as quoted by AP.  
Johnson, who had consulted Trump after the House vote, described the agreement as “a good outcome for the country” and noted that the president-elect was pleased with the resolution.  
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<h3>US House Speaker Mike Johnson Faces Tough Battle To Retain Position </h3>
Despite the successful passage, Johnson’s position remains precarious. Facing criticism from within his party, including from Maryland Representative Andy Harris, who expressed dissatisfaction over the deficit spending in the bill, Johnson’s leadership could be under threat, AP’s report stated.  
The House is set to elect a new Speaker on 3 January 2025, when the new US Congress convenes. With a narrow Republican majority of 220-215, Johnson faces a tough battle to retain his position.  
Trump’s demand for an immediate debt limit increase was deemed unfeasible, leaving Johnson with limited options. Many Republicans, especially deficit hawks, refused to back any funding package that would allow more borrowing.  
In the new year, Republicans, who will hold control of the White House, House, and Senate, plan to address the debt ceiling as part of broader tax and border policies. A handshake agreement includes raising the debt limit while reducing $2.5 trillion in spending over ten years, the report stated.  
The federal debt currently stands at $36 trillion, with rising borrowing costs due to post-pandemic inflation. While the Treasury can use “extraordinary measures” to delay default until summer 2025, Trump wanted to avoid a potential debt limit increase during his presidency.  
The negotiations exposed the limits of Trump’s influence, as he and Elon Musk, who leads the new Department of Government Efficiency, orchestrated from Mar-a-Lago. The initial 1,500-page bill, which included pay raises for lawmakers, was rejected by both Trump and Musk, forcing Johnson to start over with a scaled-down version.  
GOP leaders acknowledged the reliance on Democrats to pass routine governing measures, a pattern that may continue as Republicans navigate their legislative agenda in the coming year.